Car Finance - Can they take your car back
Discussion
A mate has just bought a car from a Ford main dealer.
I dont know the full story, but he has bought it on finance, he sorted it out last week and picked it up on saturday just gone.
He has now been contacted by the dealer, who now say that he has a poor credit rating and that he either has to pay a higher rate or give the car back.
Does this sound right? Surely if you buy a car then the finance company will do all the necessary checks before approving the loan and offering him a contract. Also, as he has signed a contract and taken the keys to the car, then he owns the car?
I dont know the full story, but he has bought it on finance, he sorted it out last week and picked it up on saturday just gone.
He has now been contacted by the dealer, who now say that he has a poor credit rating and that he either has to pay a higher rate or give the car back.
Does this sound right? Surely if you buy a car then the finance company will do all the necessary checks before approving the loan and offering him a contract. Also, as he has signed a contract and taken the keys to the car, then he owns the car?
I think it depends on what type of finance. If it's HP then although the cars in his name on the V5 - Technically it's the finance companies until the last payment has been made to said HP company.
Sounds an odd thing to happen as whenever I have bought a car on finance, credit checks happen before anything is signed / agreed.
Also, in car HP agreements, it states that until the car is fully paid for, any modifications you wish to make to the car have to be agreed by said company first. (as it is still theirs technically).
Sounds an odd thing to happen as whenever I have bought a car on finance, credit checks happen before anything is signed / agreed.
Also, in car HP agreements, it states that until the car is fully paid for, any modifications you wish to make to the car have to be agreed by said company first. (as it is still theirs technically).
Edited by VXRTOM on Tuesday 29th September 14:37
he has agreed on a set repayment i am assuming in the contract. by the time he signs the contract credit checks should be done so i doubt the contract states "subject to credit checks" however have a check, if it does your out of luck...if it does not which it shouldnt...then tell them to go screw themselves but be very careful to never miss a payment.
Ha Ha Ha what a cock up.
Yeah it's kinda important that the finance company does all the searches etc before they let you drive off.
I guess he had to sign for it before collection? Contracts work both ways, tell them to jog on.
Sidenote: HP agreements have the V5 in the keepers name, for the first 50% of the payments the balance of ownership is with the finance company then it switches.
Yeah it's kinda important that the finance company does all the searches etc before they let you drive off.
I guess he had to sign for it before collection? Contracts work both ways, tell them to jog on.
Sidenote: HP agreements have the V5 in the keepers name, for the first 50% of the payments the balance of ownership is with the finance company then it switches.
ymwoods said:
it seems that maybe the dealer in his haste to get a car out the door has dropped a b
k and is now trying to fix his mistake.
Yeah, either that or..k and is now trying to fix his mistake.the dealer may have propsed the deal to the finance company and the finance company accepted it. The finance company may have then 'unnaccepted' the deal and informed the dealer that the deal was mistakenly accepted. Unfortunately for the dealer, it's too late as they've delivered the vehicle and the finance company won't pay the dealer. If this is the case, the dealer has an issue with the finance company, not the customer and they're just trying to get the car back because the finance company won't pay up.
Providing your friend has signed the correct documentation, I think he's pretty safe. I think the dealer is in the s
t here, not your mate.ymwoods said:
it seems that maybe the dealer in his haste to get a car out the door has dropped a bk and is now trying to fix his mistake.
THIS.k and is now trying to fix his mistake.The contract for finance is between the FINANCE COMPANY and the BUYER.
It has NOTHING to do with the dealer, who is not a party to it.
The dealer has made a mistake and is now desperately trying to cover his ar5e. Sounds to me like there's a problem with the finance paperwork and the lender is refusing to pay the dealer the money for the car on the basis of this.
Tell the dealer to get stuffed, and ring the finance company and tell them what's happening!!
The dealer CANNOT have the car back. The dealer is the one with the problem, not the buyer.
Edited by Soovy on Thursday 1st October 09:57
P-Jay said:
Ha Ha Ha what a cock up.
Yeah it's kinda important that the finance company does all the searches etc before they let you drive off.
I guess he had to sign for it before collection? Contracts work both ways, tell them to jog on.
Sidenote: HP agreements have the V5 in the keepers name, for the first 50% of the payments the balance of ownership is with the finance company then it switches.
Bit late on this one but a small correction for you. The legal title to the car remains with he finance company until all the outstanding payments and final purchase fee (if any )is paid. I think you are thinking of the halves rule(voluntary termination) once 50% of the total amount borrowed is repaid.Yeah it's kinda important that the finance company does all the searches etc before they let you drive off.
I guess he had to sign for it before collection? Contracts work both ways, tell them to jog on.
Sidenote: HP agreements have the V5 in the keepers name, for the first 50% of the payments the balance of ownership is with the finance company then it switches.
Soovy said:
ymwoods said:
it seems that maybe the dealer in his haste to get a car out the door has dropped a bk and is now trying to fix his mistake.
THIS.k and is now trying to fix his mistake.The contract for finance is between the FINANCE COMPANY and the BUYER.
It has NOTHING to do with the dealer, who is not a party to it.
The dealer has made a mistake and is now desperately trying to cover his ar5e. Sounds to me like there's a problem with the finance paperwork and the lender is refusing to pay the dealer the money for the car on the basis of this.
Tell the dealer to get stuffed, and ring the finance company and tell them what's happening!!
The dealer CANNOT have the car back. The dealer is the one with the problem, not the buyer.
Edited by Soovy on Thursday 1st October 09:57
This doesn't make any sense.
Once a finance agreement has been sent through to the dealer that is that, they don't do another search.
In addition to that in this day and age, the dealer will request you sign the docs on their premises usually 2-3 days before collecting the car so that they received cleared funds from the finance house before the car is taken away.
I would be seeking legal advice.
Once a finance agreement has been sent through to the dealer that is that, they don't do another search.
In addition to that in this day and age, the dealer will request you sign the docs on their premises usually 2-3 days before collecting the car so that they received cleared funds from the finance house before the car is taken away.
I would be seeking legal advice.
CatherineJ said:
This doesn't make any sense.
Once a finance agreement has been sent through to the dealer that is that, they don't do another search.
Not so , for example : customer comes in, signs docs and dealer then sends docs off for payout. Once a finance agreement has been sent through to the dealer that is that, they don't do another search.
Customer provides a proof of id (eg driving licence) in an address that was undisclosed on the original proposal. The F.Co will search the customer at that "new" address, this may then lead to the finding of some adverse credit information.
The finance co retains the right to cancel the acceptance of the deal at any point up to payout and will do so in these circumstances.
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