Motor Dealers forcing customers to use their own dealer finance

paulhamm

I own a small independent self funded Finance Company & we are increasingly seeing Motor Dealers refusing to issue an invoice to us as a 3rd party Finance Company, telling our customers that if they want finance they have to use the Dealers own services. In the latest instance (Mini UK) they refused to sell the car to my customer when she wouldn't use them for the finance.

Surely this is an unfair business practice should not be allowed? 

They make customers sign FCA forms saying that all your options have been explained to you & that you are getting a finance packing in your best interests etc..., but how can that be the case if you aren't allowed to explore other avenues apart from their own services

Has anyone else experienced this?  

EnPointe

I suspect this is the dealers protecting themselves  becasue they have not done corporate due diligence on the  organisation you  assert to represent. 

is your lending  secured against the vehicle ? 

why  would  the dealer be invoicing someone who is not the owner of the vehicle ?  

Hoenir

Finance companies for major dealerships are likely to be sanctioned at a Group level. There'll be agreed proceedures in place. Staff trained etc. Also it's the finance company buying the vehicle. Preference maybe to put legal agreements into place with regards to the relationship between the parties. 

DullGreyGuy

EnPointe said:

why  would  the dealer be invoicing someone who is not the owner of the vehicle ?  

Because the finance company is the owner of the car until the finance is paid off in most of these arrangements

EnPointe

DullGreyGuy said:

EnPointe said:

why  would  the dealer be invoicing someone who is not the owner of the vehicle ?  

Because the finance company is the owner of the car until the finance is paid off in most of these arrangements

are they ?   or do they have a charge over the vehicle ? 

dumpster_fire2025

EnPointe said:

DullGreyGuy said:

EnPointe said:

why  would  the dealer be invoicing someone who is not the owner of the vehicle ?  

Because the finance company is the owner of the car until the finance is paid off in most of these arrangements

are they ?   or do they have a charge over the vehicle ? 

As far as I'm aware there is no mechanism for having a charge against a vehicle, so the T&C's of the finance will state that it is the property of the finance company until the finance is paid off.