Finance owing on car we bought
I have potentially managed to get myself into a pickle with finance owing on a car i just bought & i am kicking myself.
Needed to buy a run around fairly quickly & after a bit of looking around found this car I liked at a reputable local dealer for £3k. Signed on the dotted line & cleared off for a bit whilst they got it serviced and thought I had better do a HPI check before handing over cash. I did & it flagged up saying PSA Finance still hold an interest in the vehicle, tried to call PSA direct to double check but offices shut on Saturday afternoon.
So I go back to the dealer & raise this with them. They tell me that the car has only just come in as a part exchange, showed me the settlement letter they had obtained from the previous owner (£800 odd) & assured me was getting sorted. They basically made it all seem very normal & even wrote me a letter stating that finance would be cleared on receipt of payment. I needed the car that week, my gut instinct was telling me it’s all ok, I trusted them as a reputable dealer and paid for the car and took it (tin hat is on!). Maybe wouldn’t have done this if the settlement was thousands but anyway...
Fast forward to the end of the week & PSA are still saying they have an interest in this vehicle. My dealer are insistent that they have sent payment & don’t understand, they have phoned the old keeper & he has told them he’s received a letter from PSA saying he’s missed a payment so I guess he could be s bit concerned to credit file wise.
Still waiting for the V5 document to come through & then I’m tempted to use the address info to pay the old owner a visit to see if we can resolve this. As a last resort i would honestly take the settlement sum on the chin myself as a lesson learnt, if it avoids a potential reposession of a car worth a few thousand over a £800odd debt or any addition of agents fees.
Until I can attempt contact with the old owner I am a bit in limbo because PSA won’t talk to me about the account because of data protection.
Any advice guys & assuming the old owner doesn’t bother sorting this out, do I need to worry about repo agents turning up or will they chase me for the debt first as the new keeper?
Needed to buy a run around fairly quickly & after a bit of looking around found this car I liked at a reputable local dealer for £3k. Signed on the dotted line & cleared off for a bit whilst they got it serviced and thought I had better do a HPI check before handing over cash. I did & it flagged up saying PSA Finance still hold an interest in the vehicle, tried to call PSA direct to double check but offices shut on Saturday afternoon.
So I go back to the dealer & raise this with them. They tell me that the car has only just come in as a part exchange, showed me the settlement letter they had obtained from the previous owner (£800 odd) & assured me was getting sorted. They basically made it all seem very normal & even wrote me a letter stating that finance would be cleared on receipt of payment. I needed the car that week, my gut instinct was telling me it’s all ok, I trusted them as a reputable dealer and paid for the car and took it (tin hat is on!). Maybe wouldn’t have done this if the settlement was thousands but anyway...
Fast forward to the end of the week & PSA are still saying they have an interest in this vehicle. My dealer are insistent that they have sent payment & don’t understand, they have phoned the old keeper & he has told them he’s received a letter from PSA saying he’s missed a payment so I guess he could be s bit concerned to credit file wise.
Still waiting for the V5 document to come through & then I’m tempted to use the address info to pay the old owner a visit to see if we can resolve this. As a last resort i would honestly take the settlement sum on the chin myself as a lesson learnt, if it avoids a potential reposession of a car worth a few thousand over a £800odd debt or any addition of agents fees.
Until I can attempt contact with the old owner I am a bit in limbo because PSA won’t talk to me about the account because of data protection.
Any advice guys & assuming the old owner doesn’t bother sorting this out, do I need to worry about repo agents turning up or will they chase me for the debt first as the new keeper?
0
Comments
-
As you have purchased from a dealer it won't be an issue, https://www.admiral.com/magazine/news-and-current-affairs/Car-buyers-dont-know-who-owns-a-vehicle-with-finance-outstanding0
-
I have read about Innocent Purchaser Protection.
Could my dealer not if they wished try & wriggle out of that by claiming that I knew about the finance when I bought it, even though they put in writing the fact they would settle it?
I suppose with the debt being relatively small they might not bother using a legal route to screw me over, I say hopefully...0 -
I have read about Innocent Purchaser Protection.
Could my dealer not if they wished try & wriggle out of that by claiming that I knew about the finance when I bought it, even though they put in writing the fact they would settle it?
I suppose with the debt being relatively small they might not bother using a legal route to screw me over, I say hopefully...
no. you own it, its the dealers responsibilty to settle it. end of story0 -
Innocent purchaser protection is just that... You knew about the finance. This protection is for those who didn't know about any outstanding finance before buying the car from a dealer.
Your letter from the dealer does nothing but make your situation even worse. It would though support a small claims if you was to pay off any outstanding amount the dealer fails to pay.
But if the finance company won't talk to you then you just don't know what has or hasn't been done as it may take time for systems to update0 -
bobbymotors wrote: »no. you own it, its the dealers responsibilty to settle it. end of story
It's not though is it.
Op doesn't meet the criteria of an innocent buyer and as such has no such protection. Finance company own it until the finance settled0 -
But if the finance company won't talk to you then you just don't know what has or hasn't been done as it may take time for systems to update
Yea this is my main source of anxiety at the moment, which I why I am thinking that proactively trying to contact the last owner might be the best course. He might not have the car anymore, but having part exchanged expecting the dealer to settle the finance will probably not appreciate now having black marks on his credit file & hassle for missed payments.
Would PSA potentially order repossession of the vehicle without making contact with me first?0 -
I'd be pushing the dealer to sort it. In person.0
-
Yea this is my main source of anxiety at the moment, which I why I am thinking that proactively trying to contact the last owner might be the best course. He might not have the car anymore, but having part exchanged expecting the dealer to settle the finance will probably not appreciate now having black marks on his credit file & hassle for missed payments.
Would PSA potentially order repossession of the vehicle without making contact with me first?
When did you actually buy the car (signed on the dotted line)? Admin for these things at either end can take several days.
Personally as long as I had that letter from the dealer I wouldn't be worrying unduly and I certainly wouldn't be going to the extent of chasing it up myself with either the previous keeper or the finance company.0 -
Its been 2 full working weeks now since buying & HPI still shows finance owing. I paid the dealer a visit last Saturday and the bloke chased it up, admitted ‘the director’ may not have done it, chased it up and had since assured me they have paid the settlement.
It’s strange, last week I phoned PSA and they were quite cooperative in letting me know they still hold an interest, this week whilst trying to verify that they no longer hold an interest (assuming the dealer paid), they have stone walled me completely leaving me frustrated & wondering what’s happening!0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards