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Car For Sale At Dealer - Finance Outstanding


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#1 Pete649

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Posted 21 November 2020 - 05:27 PM

Had a look at a car (non Mini) at a local (posh) dealer. Liked the car and did a HPI only to find it being flagged as having outstanding finance against it.

What would I need to in the way of proof that this has been resolved before purchasing the vehicle?

 

I can contact the finance house directly as the HPI check has given me the details.

 

I can't really just take the dealer's word for anything can I. Especially when the next thing I get is a letter form the finance company wanting the rest of the money or the car gets repossessed.

 

Anyone else been in this situation?



#2 Carlos W

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Posted 21 November 2020 - 05:39 PM

I'd start by asking the dealer why there's finance still outstanding.

I'm not sure whether the hpi database updates instantly once it's paid off or if there's any delay?

How long have they had the car for sale?

#3 beardylondon

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Posted 21 November 2020 - 05:40 PM

A lot of dealers actually use finance to buy cars, so it could be that.

 

You have the law on your side for a start, they can't sell a car with finance on.

 

Have you actually asked the dealer?



#4 Maccmike8

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Posted 21 November 2020 - 05:50 PM

I nearly bought a car a couple of years ago with outstanding finance.

 

I had agreed to pay the finance off (it was equal to the cars value) I even spoke directly with the finance company and they were happy to do it (big bank not obscure company), then do usual receipt and V5 change.

 

When I went to get the car and do the money, in the week since first viewing it, the head gasket had gone so didnt buy it.

 

But I had no concerns buying it.



#5 Pete649

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Posted 21 November 2020 - 06:19 PM

Have you actually asked the dealer?

 

Not yet, I have only just done the check. I plan to ask the dealer on Monday.

 

I'm not sure whether the hpi database updates instantly once it's paid off or if there's any delay?

How long have they had the car for sale?

 

It has been on their website for about a week. As you say there may just be a delay in the HPI database updating.

 

I think I will call the finance company on Monday.



#6 Pete649

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Posted 21 November 2020 - 07:34 PM

A lot of dealers actually use finance to buy cars, so it could be that.

 

Just looked again at the HPI report.

 

The Agreement Type is 'Hire Purchase' rather than "Unit Stocking'

 

Thanks for all the replies by the way :-)



#7 Pete649

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Posted 23 November 2020 - 10:41 AM

Contacted the finance house who state that they still have an interest in the vehicle. They have referred me back to the dealer.

 

They did tell me, though, that when any finance is cleared the HPI would update in 48 hrs or less.



#8 Pete649

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Posted 23 November 2020 - 12:54 PM

Dealer came back to me. He said that it was his finance and that it would be cleared prior to delivery of the vehicle.

 

So presumably I would need to pay the dealer and he uses my money to clear the finance.

 

This would leave me exposed until the finance was cleared. Hmmm.



#9 KTS

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Posted 23 November 2020 - 03:15 PM

is the dealer willing to provide written confirmation that they will pay off all outstanding finance on the car before transferring ownership to yourself  ?



#10 Pete649

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Posted 23 November 2020 - 05:11 PM

is the dealer willing to provide written confirmation that they will pay off all outstanding finance on the car before transferring ownership to yourself  ?

 

Just have an email which states that

 

'The car will be cleared prior to delivery.'

 

I have subsequently found several threads on PistonHeads related to this situation. Apparently it is normal practise these days. There was a suggestion in one of the threads to pay a deposit, or nominal part payment, on a credit card and the rest by bank transfer or whatever. If there is then a problem I would be covered for the full amount under Section 75 of the Consumer Credit act.






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