Car dealer never received finance from the lender

Aztec_99

Hi,
My sister recently bought a car from a large nationwide dealership. She signed the finance agreement, which was approved through consents (open banking) got the car delivered locally,  paid her agreed deposit by card and drove away. Obviously she completed the V5 and received a new one too.

Now, here's where it gets interesting. She never received an agreement number from the car finance company, but did sign the direct debit mandate and when she called them to query when the direct debit was to be paid (as it hadn't been taken) the finance company informed her that they never sent the money to the dealer, because the dealer never forwarded them the signed documents. Therefore the offer lapsed. 

Who now owns the car, after all she paid the deposit and signed all the documents in good faith and was told that everything was fine?

Thanks in advance for any advice.

Mildly_Miffed

The dealer, since nobody's paid for it.

The financier and the dealer need to sort it out amongst themselves, which is likely to require your sister to sign new paperwork, or find another way of paying for the car if she wants to keep it.

If she doesn't want to keep it, then she's still going to owe the dealer money for the use she's had from it in the interim.

Aztec_99

She has paid the deposit though. By debit card to the dealer.

TheSpectator

Aztec_99 said:

She has paid the deposit though. By debit card to the dealer.

And that means she owns the car? Is that your logic?

A V5 doesn't prove ownership btw.

Nobbie1967

TheSpectator said:

Aztec_99 said:

She has paid the deposit though. By debit card to the dealer.

And that means she owns the car? Is that your logic?

A V5 doesn't prove ownership btw.

She entered a contract to buy the car and paid a deposit as part payment. As the finance has failed she now owes the dealer the balance. As it appears to be the dealer’s mistake I would expect them to sort out replacement finance rather than pursue for the cash.

Mildly_Miffed

Nobbie1967 said:

As it appears to be the dealer’s mistake

...according to the financier.

It may be, of course, that the dealer DID send the paperwork through but the financier has misplaced or misfiled it.

Either way, it's academic. The finance offer has expired, and a new package needs to be agreed.

Aztec_99

TheSpectator said:

Aztec_99 said:

She has paid the deposit though. By debit card to the dealer.

And that means she owns the car? Is that your logic?

A V5 doesn't prove ownership btw.

No. Where did I say that?

photome

Aztec_99 said:

TheSpectator said:

Aztec_99 said:

She has paid the deposit though. By debit card to the dealer.

And that means she owns the car? Is that your logic?

A V5 doesn't prove ownership btw.

No. Where did I say that?

You asked who owns the car…answer the dealer. You then said but she has paid the deposit, maybe that’s why the question was asked.

what have the dealer and finance company said  about a new finance offer? She won’t own the car until it’s sorted