Car finance question?
Discussion
A friend of the better halfs has found out that his car has outstanding finance owing, he's owned the car for about 6 months and bought it from a dealer.
He only found out because he was stopped by another driver who recognised her car and was moaning about letters from her finance company, she sold it to the garage who said they would pay it off.
He has since done a hpi and its come up with finance owing, what can he do, surely the garage shouldn't have sold it with outstanding finance owed, and before you say it, yes, he should have checked it before buying.
He only found out because he was stopped by another driver who recognised her car and was moaning about letters from her finance company, she sold it to the garage who said they would pay it off.
He has since done a hpi and its come up with finance owing, what can he do, surely the garage shouldn't have sold it with outstanding finance owed, and before you say it, yes, he should have checked it before buying.
He wants to go back to them, but I have told him to be sure of the facts and his rights first, hence the initial question.
Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
steve1 said:
He wants to go back to them, but I have told him to be sure of the facts and his rights first, hence the initial question.
Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
The dealer said they would carry on making the finance payments on the car!?!?!?!? Smells fishy to me......maybe they couldn't afford to clear the finance??? Hmm.........Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
steve1 said:
He wants to go back to them, but I have told him to be sure of the facts and his rights first, hence the initial question.
Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
Absolutely not - they are not allowed to sell a vehicle with finance outstanding on it. They must clear the finance immediately - the fact that there didn't continue the payments will have hit the previous owner's credit score. (Equally, the original seller should have ensured that the dealer settled the finance agreement before parting with the car.)Apparently the dealer told the seller that they would continue the payments on the finance, ( i think thats why the original owner received a letter from the finance company, they missed a payment ), can they do this, or should they settle it completely.
Nevertheless this isn't your friend's concern - dealer is to get it sorted.
Sarnie said:
The dealer said they would carry on making the finance payments on the car!?!?!?!? Smells fishy to me......maybe they couldn't afford to clear the finance??? Hmm.........
I know, it's what I thought, again the reason why he needs to know his rights before contacting them again.I suppose his biggest fear is that if the finance company so wishes they can grab the car back as a non payment, or is he in the clear because of what's happened.
steve1 said:
I know, it's what I thought, again the reason why he needs to know his rights before contacting them again.
I suppose his biggest fear is that if the finance company so wishes they can grab the car back as a non payment, or is he in the clear because of what's happened.
No, he's not in the clear; the finance company still own the vehicle until their financial interest has been settled.I suppose his biggest fear is that if the finance company so wishes they can grab the car back as a non payment, or is he in the clear because of what's happened.
Not sure if the dealer is still trading. I know he should have paid it off and the guy should have checked before buying, but sadly neither of those things happened, he just needs to know his rights and which way to approach things to get it sorted without losing his car.
Can he ring the finance company and make them aware, or should he keep them out of it until he's tried all other avenues.
Can he ring the finance company and make them aware, or should he keep them out of it until he's tried all other avenues.
Don't ring the finance company - no need to involve them at the moment. They'll be pressuring the original seller to keep up the payments and no doubt they'll want to stay involved on getting this cleared off.
Firstly check if he dealer is still trading - that's the first route. They are the people who need to sort this.
Firstly check if he dealer is still trading - that's the first route. They are the people who need to sort this.
It's the dealers responsibility to clear this off.
However, I bought a car privately last year which turned out to have finance outstanding on it - I have no idea how much though. I phoned Blackhorse to explain the situation and they cleared it within a matter of days due to the circumstances. My own fault for not doing a HPI check but it worked out fine.
However, I bought a car privately last year which turned out to have finance outstanding on it - I have no idea how much though. I phoned Blackhorse to explain the situation and they cleared it within a matter of days due to the circumstances. My own fault for not doing a HPI check but it worked out fine.
steve1 said:
A quick update, after all the advice given he rung the dealers to confront them, they were very sheepish and have promised to pay it off by the end of the month.
Thats not a solution, that's a p
s off we'll keep our money and then have laugh when we wind the company up in a few months... It needs to be paid off now not at the end of the month.fuzzymonkey said:
steve1 said:
A quick update, after all the advice given he rung the dealers to confront them, they were very sheepish and have promised to pay it off by the end of the month.
Thats not a solution, that's a ps off we'll keep our money and then have laugh when we wind the company up in a few months... It needs to be paid off now not at the end of the month.At least this way he has given them more than sufficient time to do the right thing, if after this the finance is still outstanding then he can carry on with other forms of action, knowing they had chance to put things right.
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