Finance outstanding on car at dealer

Finance outstanding on car at dealer

Author
Discussion

GaryG182

Original Poster:

318 posts

230 months

Friday 13th September
quotequote all
Hi all, quick legit check pls.

Looking to buy a £60k car that’s up with a dealer and HPI check shows outstanding finance, raised this with the sales person and was told it would be cleared once funds were transferred. However, I’m now thinking it’s a SOR type thing and they haven’t been up front about this nor the outstanding finance.

Just wanted to get the PH collective thoughts on this, am I being too suspicious or would it be prudent to pay the finance co directly at point of sale?
Cheers

vikingaero

11,221 posts

176 months

Friday 13th September
quotequote all
It could also be dealer stocking finance.

Caddyshack

11,831 posts

213 months

Friday 13th September
quotequote all
As long as you make sure it’s clear then all is good. I don’t see any issue if they own it, have finance on it or it’s SOR as long as it’s clear when you own it.

GaryG182

Original Poster:

318 posts

230 months

Friday 13th September
quotequote all
That’s actually what I was told but when speaking to the finance co directly they didn’t confirm it.

2 sMoKiN bArReLs

30,589 posts

242 months

Friday 13th September
quotequote all
vikingaero said:
It could also be dealer stocking finance.
yes

This is a very likely scenario.

GaryG182

Original Poster:

318 posts

230 months

Friday 13th September
quotequote all
Ok fair enough, puts my mind at rest. Finance co said it was an “operating lease” so I guess stocking finance is what it is and everything’s legit. It’s just they put doubt in my head saying they owned the vehicle and if the payments weren’t made then they could repossess.

Not brought a car with stocking finance/operating lease before. It’s a small trader only recently in business, so just checking if I can protect myself.

Edited by GaryG182 on Friday 13th September 12:41

2 sMoKiN bArReLs

30,589 posts

242 months

Friday 13th September
quotequote all
GaryG182 said:
Ok fair enough, puts my mind at rest. Finance co said it was an “operating lease” so I guess stocking finance is what it is and everything’s legit. It’s just they put doubt in my head saying they owned the vehicle and if the payments weren’t made then they could repossess.

Not brought a car with stocking finance/operating lease before. It’s a small trader only recently in business, so just checking if I can protect myself.

Edited by GaryG182 on Friday 13th September 12:41
Pay a chunk on a credit card. That is your best protection. thumbup




2 sMoKiN bArReLs

30,589 posts

242 months

Friday 13th September
quotequote all
When I say a chunk, £100 upwards will do.

GaryG182

Original Poster:

318 posts

230 months

Friday 13th September
quotequote all
That’s a good shout, thanks

Terminator X

16,327 posts

211 months

Friday 13th September
quotequote all
GaryG182 said:
Hi all, quick legit check pls.

Looking to buy a £60k car that’s up with a dealer and HPI check shows outstanding finance, raised this with the sales person and was told it would be cleared once funds were transferred. However, I’m now thinking it’s a SOR type thing and they haven’t been up front about this nor the outstanding finance.

Just wanted to get the PH collective thoughts on this, am I being too suspicious or would it be prudent to pay the finance co directly at point of sale?
Cheers
Afaik some dealers will just leave the finance until next person buys the car. Bit piss poor if you ask me as if I traded in a car I'd expect them to clear the finance on that with the money I paid for the new one.

As for you buying their car I'd just make sure you are there when they clear the finance. Slightly tin foil hat though as a respectable dealer should be "trusted" to clear it imho.

TX.

Auto810graphy

1,525 posts

99 months

Friday 13th September
quotequote all
Terminator X said:
Afaik some dealers will just leave the finance until next person buys the car. Bit piss poor if you ask me as if I traded in a car I'd expect them to clear the finance on that with the money I paid for the new one.

As for you buying their car I'd just make sure you are there when they clear the finance. Slightly tin foil hat though as a respectable dealer should be "trusted" to clear it imho.

TX.
Most dealers will clear all the finance, you can’t just clear part as the customer is still liable for payments.

OP, do an HPI check and see when the finance was added. It will normally show as a 90-180 day agreement if its stock funding. Operating lease makes it sound more like SOR.

GaryG182

Original Poster:

318 posts

230 months

Friday 13th September
quotequote all
Thanks for the info guys. I think I’m just going to ask the dealer if I can pay off the finance company direct on the day of collection…if that’s not possible then I think I would see that as a bit of a red flag.

MitchT

16,230 posts

216 months

Friday 13th September
quotequote all
2 sMoKiN bArReLs said:
vikingaero said:
It could also be dealer stocking finance.
yes

This is a very likely scenario.
I was looking at a car for sale a while ago. The dealer's website had all the documents to download, including the HPI report. Against "Outstanding Finance" it said "Recorded - Dealer Stocking Only", so I guess an HPI report should reveal the nature of the outstanding finance, not just that there is some.

confused_buyer

6,764 posts

188 months

Saturday 14th September
quotequote all
You won't be able to pay off stocking finance directly. That's not how it works.

If it is stocking finance I wouldn't worry too much about it as the liability is with the dealer. It's very, very common and the majority of dealers will have some cars on stocking finance including glass palace franchised ones.

If it is some sort of more "regular" finance that's different and would need further investigation.