Outstanding Finance on purchased car.

[Gen_Billy]

Managed to speak to General Manager this morning- He said they have done everything they can do on their end - they are awaiting for the finance company to give the all clearance - he said he doesn't quite know often they send out bulk clearances on finance closures. Some take a week and others by the end of the month and they can only wait and chase daily.

He said he will provide a formal letter from the dealership on collection. The letter will say they have cleared the finance and the car can be sold onto me but they are awaiting formal confirmation from the finance company and this will be provided as soon as they receive it...

Will this stand up to any finance collectors/bailiffs?

I do think it was a genuine mistake on their end. I did ask about some sort of compensation - 3 weeks waiting around. He said they will think about something.

[Dan1971]

Don't pay in full for anything you've not got again. If it were a £250 deposit you could have walked if you were unsure and not taken a massive hit - when they have the whole amount that means you are tied in, all your money has gone and they are in no rush to do anything for you. If you are holding thousands back until the handover they will work harder to get your car sorted.

I wouldn't worry about the finance so long as you have everything documented by the dealer.

[Sotosound]

Originally Posted by Gen_Billy

Managed to speak to General Manager this morning- He said they have done everything they can do on their end - they are awaiting for the finance company to give the all clearance - he said he doesn't quite know often they send out bulk clearances on finance closures. Some take a week and others by the end of the month and they can only wait and chase daily.

He said he will provide a formal letter from the dealership on collection. The letter will say they have cleared the finance and the car can be sold onto me but they are awaiting formal confirmation from the finance company and this will be provided as soon as they receive it...

Will this stand up to any finance collectors/bailiffs?

I do think it was a genuine mistake on their end. I did ask about some sort of compensation - 3 weeks waiting around. He said they will think about something.

So their letter will say that they have cleared the finance but that the formal confirmation that would enable them to do this has not yet been received?

That's a contradiction in terms, and, in reality, the lack of formal confirmation means that they have not been able to clear the finance, whatever else their letter says. The lack of that formal confirmation sadly trumps the rest of the waffle.

Personally, I would either wait for the matter to be formally settled or walk away. Taking the car now would be at your own risk, and the dealer knows this only too well.

A possible middle ground would be to set the dealer a deadline for resolution, after which you'll walk away.

That would force the dealer to show their true position, which is what you need to see, even if it means that your purchase falls through. In the end, it is what it is but it might also not be what you would wish it to be. (And this is what is really upsetting you.)

And mean what you say. One deadline, say one week, and no extensions.

If the dealer sees that you might give way then they'll still have you. If they see that you're serious, however, and they have only a limited time to sort things out then they'll get it sorted if it's truly possible to do so. Right now it feels as though they're trying to shift an unresolvable problem onto you and giving you a lot of BS to get you to fall in line with their self-serving aim.

Not very nice, but we are talking about the motor trade here.

[andy_d]

Originally Posted by Sotosound

So their letter will say that they have cleared the finance but that the formal confirmation that would enable them to do this has not yet been received?

That's a contradiction in terms, and, in reality, the lack of formal confirmation means that they have not been able to clear the finance, whatever else their letter says. The lack of that formal confirmation sadly trumps the rest of the waffle.

Personally, I would either wait for the matter to be formally settled or walk away. Taking the car now would be at your own risk, and the dealer knows this only too well.

A possible middle ground would be to set the dealer a deadline for resolution, after which you'll walk away.

That would force the dealer to show their true position, which is what you need to see, even if it means that your purchase falls through. In the end, it is what it is but it might also not be what you would wish it to be. (And this is what is really upsetting you.)

And mean what you say. One deadline, say one week, and no extensions.

If the dealer sees that you might give way then they'll still have you. If they see that you're serious, however, and they have only a limited time to sort things out then they'll get it sorted if it's truly possible to do so. Right now it feels as though they're trying to shift an unresolvable problem onto you and giving you a lot of BS to get you to fall in line with their self-serving aim.

Not very nice, but we are talking about the motor trade here.

^^
that


it "might" be the ideal car, there Will be others of the Same , or better spec , for the same price

that "letter" from the dealer is worth,, Nothing as said ^^^

However, selling a car with outstanding finance without telling the buyer is illegal. Until the finance is settled (i.e. until you reach the end of the finance term), the car is still owned by the finance company, so it’s not yours to sell.

from auto trader

Can I sell a car with outstanding hire purchase finance (HP)?
The lender maintains ownership of the car during a hire purchase contract until you have paid off all of the agreement. Since they are the legal owner, you are not legally able to sell or trade in the car.

from money saving expert (martin lewis)

Can I sell a car on an outstanding personal contract purchase (PCP)?
As with hire purchase agreements, you do not legally own your vehicle during a PCP agreement and so cannot legally sell it.

from money saving expert (martin lewis)


QED
Technically the Dealer can not sell the car as they Technically do not own it,until the finance is paid off.
as a Car dealer they "should" know that ,its law and has been for years,
as they are offering a letter that is worthless , to get the sale/keep your money, and Havent complied fully with the law,, you HAVE to be asking yourself what sort of dealer they really are,,
trustworthy ?
trading in the "grey" parts of "legal"
"worse"


Plenty of people have already said "get your money back by what ever legal means you Need to and Walk away" for Very good reasons. Take there advice

[Gen_Billy]

And what about if the dealer has cleared the finance and are just waiting confirmation?

Confrimation and the removal of the outstanding finance is out of their control.

I will ask them this question when I next speak to them - however they did say they been in the business since 19** and they do have a reputation to maintain and will look after their customers.

[Sotosound]

Originally Posted by Gen_Billy

And what about if the dealer has cleared the finance and are just waiting confirmation?

Confrimation and the removal of the outstanding finance is out of their control.

I will ask them this question when I next speak to them - however they did say they been in the business since 19** and they do have a reputation to maintain and will look after their customers.

If confirmation and removal of the outstanding finance is out of your dealer's control then it's also out of your control.

They have your money and they know that you want that car, so they're going to do what they're doing as it's in their interests to do so. If they didn't have your money then they'd have less leverage.

If time is really needed then wait and tell your impatient side to stay quiet for a while as time is what will tell with this. Just make sure that you're not going to be bound into anything else because you insisted on waiting.

The final decision is yours, but there is clearly something wrong with this and you should consider asking for a refund. If your request is refused then you'll know exactly where you stand and you'll also know exactly where your dealer really stands.

Please remember that we have no skin in this but your dealer does.

[S60D5-185]

Originally Posted by Gen_Billy

And what about if the dealer has cleared the finance and are just waiting confirmation?

Confrimation and the removal of the outstanding finance is out of their control.

I will ask them this question when I next speak to them - however they did say they been in the business since 19** and they do have a reputation to maintain and will look after their customers.

In all fairness you have asked for advice and much has been given.

It does rather appear that irrespective of what others have said coupled with your own nagging doubts, you are hell bent on having this car come what may.

Good luck, I hope it turns out well for you but that dealer certainly doesn't inspire confidence. 👍

[MDS40]

You could ask for a full refund minus a holding deposit of £? untill the finance issue is resolved.
That shows your willingness to proceed if all is above board.
I cant see why they would object.

[Gen_Billy]

Originally Posted by S60D5-185

In all fairness you have asked for advice and much has been given.

It does rather appear that irrespective of what others have said coupled with your own nagging doubts, you are hell bent on having this car come what may.

Good luck, I hope it turns out well for you but that dealer certainly doesn't inspire confidence. 👍

Thanks all. I appreciate the sound advise you folks have given me. I might float the ideal of getting a refund with them - so legal advise would have been good at the start. I made one big mistake not doing the check before I put the £1000 deposit on, I just don't want them to say its too late for a refund and they wont give it to me. I don't really want to go to Civil Court over this and rather not go there -

If they said "sure you can have a refund" - I would feel I be missing out on this car and great deal. Yes other cars are available elsewhere . You see I've actually been waiting over 3 years to purchase a new car - Generally second hand car prices have gone really high and I have been waiting for them to drop - but they haven't really- and I have visited this dealership numerous times - looking for the right car/deal. - So I really want this to go through.

Tried contacting the finance company to find out where I stand and there was 42 people on the line....

[Sotosound]

Originally Posted by Gen_Billy

Thanks all. I appreciate the sound advise you folks have given me. I might float the ideal of getting a refund with them - so legal advise would have been good at the start. I made one big mistake not doing the check before I put the £1000 deposit on, I just don't want them to say its too late for a refund and they wont give it to me. I don't really want to go to Civil Court over this and rather not go there -

If they said "sure you can have a refund" - I would feel I be missing out on this car and great deal. Yes other cars are available elsewhere . You see I've actually been waiting over 3 years to purchase a new car - Generally second hand car prices have gone really high and I have been waiting for them to drop - but they haven't really- and I have visited this dealership numerous times - looking for the right car/deal. - So I really want this to go through.

Tried contacting the finance company to find out where I stand and there was 42 people on the line....

If I understand things correctly, then this car has never been theirs to sell, and they weren't entitled to collect even a deposit. And they know this.