Motorway sale fell through, dealer has taken finance on car

Motorway sale fell through, dealer has taken finance on car

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CJM89

Original Poster:

11 posts

9 months

Sunday 4th February
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Hi,

Any advice would be greatly appreciated as we're currently stuck in limbo 😔

It's a bit of a weird one and I'll try and make it as short as possible...

We advertised our car on Motorway.co.uk and a dealer met the reserve price. He was meant to be arranging to collect the car and a few days passed however he then messaged asking if he could pay us £100 more to take the car off Motorway and sell privately to him as it would save him paying a fee to Motorway. At this point we requested to cancel the sale as it didn't sit well with us and we were able to get the same price from Arnold Clarks "sell my car" scheme and had a local branch just along the road from us (yes they are as bad at buying your car as they are at selling them). Thus, the sale was cancelled.

We then sold the car to Arnold Clark who did checks confiming no outstanding finance etc and money would be in our bank in 3-5 days to then receive a phone call 2 days later advising there was outstanding finance on the car and they were cancelling the purchase. We then did a finance check and could see that finance had been taken out the day after we sold it to Arnold Clark (who are a whole other story in itself and we're currently battling it out with them). They washed their hands of the situation and asked us to pick the car back up which we have refused to do as at the time we had no idea where the finance had come from and it had happened while the car was in their possession.

Following a lot of digging on our behalf and zero help/investigations from Arnold Clark we have come to the conclusion that the Motorway dealer took finance out on the car as Motorway have confirmed that the V5 documents/chassis number were passed to the dealer to allow him to bring the car into his stock. They have raised a case to sort this with the dealer and we also have the finance company doing the same, however they keep advising they are getting no response. We have contacted the dealer himself who confirmed finance was taking out however he cancelled it and the finance company should confirm they have no financial interest in the car - they are not confirming this, only that no finance is held in our names and we are not known to them.

I am currently waiting to hear from Trading Standards relating to Arnold Clarks handling of the situation who currently have possession of our car as we were advised not to collect it until we have spoken with Trading Standards. In the meantime we have not been paid and im uneasy with the car remaining in their possession. Obviously now we understand how the finance situation has come about.

Does anyone have any advise on where we stand with a dealer taking finance out on a car he did not purchase? No money ever changed hands and the sale was cancelled with Motorway. My worry is that we now have a car we can never sell as finance is against it, despite it not being our finance. Although there is question if Arnold Clark are now responsible, given we had already signed our contract with them following a clear HPI check and this happened after the fact.
Initially we just couldn't understand how this could have happened until we realised the dealer had been given the chassis number by Motorway!

Sorry for the length of the post, as you can probably tell we are tearing our hair out with this one 😨

Semmelweiss

1,755 posts

203 months

Sunday 4th February
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I'm sorry to hear that you are in this position.

Who is in possession of the V5?

Scrump

22,931 posts

165 months

Sunday 4th February
quotequote all
Wow, what a mess!
Terrible situation to be in.
I sold a car through motorway last year and it went very smoothly, sorry to hear you had such troubles.

CJM89

Original Poster:

11 posts

9 months

Sunday 4th February
quotequote all
Semmelweiss said:
I'm sorry to hear that you are in this position.

Who is in possession of the V5?
Currently Arnold Clark are in possession of the V5 and we have received acknowledgement from DVLA that we are no longer registered keeper. However Arnold Clark were planning to send the V5 back putting it back into our name, which forms part of our complaint to them as we have queried if this would result in a further previous owner. We have asked in writing that all action being taken by them to hand the car back to us be paused with immediate effect.

CJM89

Original Poster:

11 posts

9 months

Sunday 4th February
quotequote all
Scrump said:
Wow, what a mess!
Terrible situation to be in.
I sold a car through motorway last year and it went very smoothly, sorry to hear you had such troubles.
Incredibly so 😔

It's perhaps all our own doing for pulling out of the sale however we'd never sold with Motorway before and when the dealer asked for it to be a private sale we took cold feet and exercised our right to not go through with the sale, seeing Arnold Clark as a easier option. We thought that cancelling the sale would be the end of it but unfortunately that's not been the case.

elanfan

5,527 posts

234 months

Sunday 4th February
quotequote all
This is all interesting stuff but what is hap,penning with the dealer that took out the finance? What’s he got to say for himself? Surely a visit from the law for fraud is called for?

What do the finance company say? Best scenario would be the dealer has told them he jumped the gun and they’re getting their money back off him and they can confirm there’s no longer finance in place.

How much is it anyway?

CJM89

Original Poster:

11 posts

9 months

Sunday 4th February
quotequote all
elanfan said:
This is all interesting stuff but what is hap,penning with the dealer that took out the finance? What’s he got to say for himself? Surely a visit from the law for fraud is called for?

What do the finance company say? Best scenario would be the dealer has told them he jumped the gun and they’re getting their money back off him and they can confirm there’s no longer finance in place.

How much is it anyway?
That's the bit we're not too sure where we stand. Has the dealer committed fraud? I'm unsure how that side all works. It may all be innocent enough but the finance company just say they've emailed the dealer and are still awaiting a reply. The dealer says he's already cancelled it and the finance company have no financial interest anymore but hasn't evidenced this to us. Motorway have also raised a case with their dealer support for the matter to be investigated with the dealer.

vaud

52,317 posts

162 months

Sunday 4th February
quotequote all
CJM89 said:
That's the bit we're not too sure where we stand. Has the dealer committed fraud? I'm unsure how that side all works. It may all be innocent enough but the finance company just say they've emailed the dealer and are still awaiting a reply. The dealer says he's already cancelled it and the finance company have no financial interest anymore but hasn't evidenced this to us. Motorway have also raised a case with their dealer support for the matter to be investigated with the dealer.
Yes they have committed fraud if they have taken finance on a vehicle that the don't own.

Nickp82

3,404 posts

100 months

Sunday 4th February
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Is it some sort of stocking finance set up by the dealer do you know?

Auto810graphy

1,523 posts

99 months

Sunday 4th February
quotequote all
Easiest thing to do is get an HPi report.

Contact HPI to challenge the finance interest. This will get sent to the right person in the finance company.

At the same time contact the finance company on the number HPI provide and advise them that finance has been taken out on your vehicle however the person does not have possession. This is a red flag for stock funders so they and the dealer will want to resolve it.

When you hear from the finance company ask them for a clearance / letter of no further interest be emailed.

Contact Arnold Clark in writing and say they will have clearance within 5 days.

Once sorted forward Motorway the correspondence offering to cut them out and they will most likely close the buyers account as they are clearly trying to avoid the Motorway fees.

Other than that there’s not much you can do.

AceRockatansky

2,410 posts

34 months

Sunday 4th February
quotequote all
When I hear about these things going on, it always feels like no one can be bothered to sort it out. You'd think someone would be getting into serious trouble somewhere, but that obviously requires a bit of effort to do so.

The only time you can actually get action is when it costs something.

Rough101

2,286 posts

82 months

Sunday 4th February
quotequote all
I know that Arnold Clark haven’t been very helpful, but I can fully see their point, and whilst they have possession, they have asked you to take it away, I can see why they don’t really want involved in the mess.

Motorway need to delist that first dealer.

Edited by Rough101 on Sunday 4th February 20:24

twing

5,196 posts

138 months

Sunday 4th February
quotequote all
Nickp82 said:
Is it some sort of stocking finance set up by the dealer do you know?
Yes, it is

Mark V GTD

2,425 posts

131 months

Sunday 4th February
quotequote all
CJM89 said:
It's perhaps all our own doing for pulling out of the sale however we'd never sold with Motorway before and when the dealer asked for it to be a private sale we took cold feet and exercised our right to not go through with the sale, seeing Arnold Clark as a easier option.
Motorway merely act as an introduction agency and you sell the car directly to the winning bidder (purchasing dealer) - so if you are a private individual it is a private sale! Whatever relationship the dealer has with Motorway is a matter for them and I don’t see how it can have any effect on the legitimacy of the sale.


Edited by Mark V GTD on Sunday 4th February 14:37

anonymous-user

61 months

Sunday 4th February
quotequote all
I can't see what AC have/are doing wrong tbh


Bought your car and because of the prev failed/messed up sale between you and the MW trader then the car has finance on. You can't expect them to sort it for you mate

YOu need to collect it from them when they have the V5 in your name and tidy things up with the finance situation

ACCYSTAN

1,027 posts

128 months

Sunday 4th February
quotequote all
The blame is with the original buying dealer who has likely committed fraud,

You need to visit your local police station and report it as a crime.

At the same time, forward any evidence to motorway of the dealer trying to cut them out of the picture.


soad

33,444 posts

183 months

Sunday 4th February
quotequote all
Absolutely mental situation, I feel for you. Wouldn’t think this would be possible. frown

Mark V GTD

2,425 posts

131 months

Sunday 4th February
quotequote all
OP - if you handed that car over to a dealer on the promise that they would pay in a few days time then that’s the biggest mistake made in this sorry saga. Never ever do that.

Regardless of that - best of luck getting things sorted out.

AceRockatansky

2,410 posts

34 months

Monday 5th February
quotequote all
lord trumpton said:
I can't see what AC have/are doing wrong tbh


Bought your car and because of the prev failed/messed up sale between you and the MW trader then the car has finance on. You can't expect them to sort it for you mate

YOu need to collect it from them when they have the V5 in your name and tidy things up with the finance situation
Well they have transferred ownership into their name before paying for it. Shouldn't they have done their checks first? They are a responsible company, or should act like one.

Trevor555

4,504 posts

91 months

Monday 5th February
quotequote all
Arnold Clark doing nothing wrong here.

Although surprised you let them have possession of your car before payment.

That dealer has probably taken out a stocking finance loan on the car (quite normal practice), which they shouldn't have done until the purchase was finalised.

1. Contact Hpi as already mentioned.

2. Contact this dealer and tell them the problem. Tell them they have 7 days to sort the problem or you'll be putting a complaint in to the FCA. Try to do this in an email

I'm a little concerned though, Arnold Clarke should be able to tell if it's a stocking loan from their Hpi report, and would know that this would be easily sortable within a few days.

If it's not a stocking loan then I'd be very, very, very, concerned. Hence speak to Hpi today.

It's not unknown for a failing dealer to take out a load of dodgy finance deals, pocket the cash, and go bust. (sortable if this is the case, but may take time)

Also let Motorway know as I'm sure they'll want to cancel this dealers account.


Edited by Trevor555 on Monday 5th February 09:56


Edited by Trevor555 on Monday 5th February 09:58


Edited by Trevor555 on Monday 5th February 10:02