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I have just done a HPI check on a vehicle we was going to px and it has come up as outstanding finance,this is from a fairly big dealers,apart from contacting the dealer what is my next step.
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That is your next step then if your not happy contact the HP company,it is probably the main dealer has not yet paid the HP company after taking the car in a part ex deal.
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The report does not say who the finance is with,ringing the dealer today.
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The dealer says the vehicle does have finance on it and they will clear it when we purchase and send us proof,not very happy with this and have requested it is cleared before we complete.It's looking dodgy but it's a biggish dealer.
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The dealer has now agreed to pay off the finance before we complete.
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Once a dealer, who has been made aware of outstanding finance, has taken a car in part exchange, or bought it from a seller, then they are obliged to pay off the finance immediately. The fact that they haven't (though common in the trade to preserve cash flow) means that they have, effectively, defrauded the previous owner and the finance house. Insist on proof perfect that they have settled the finance before doing anything else.
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Poor management within dealership which could be the sign of things to come with any other problems you may have with your purchase. Walk away and find a dealer where this isn't a problem and tell them why you are doing that.
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Spot on Coopshere. Pity the person who had the car before and expected the dealer to settle his finance on the car. If he didn't cancel his Direct Debit to the finance company, then a further months payment may well have been taken from his bank, causing endless problems. If he did cancel the Direct Debit, then he could end up with a black mark on his credit file. All because the dealer wanted to hold onto the cash for as long as they could. Shameful way of trading!
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They are clearing it first,they said the car was on finance when the owner px for a new one,they then paid off that finance and they financed the new car with there own finance company.
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(Once a dealer, who has been made aware of outstanding finance, has taken a car in part exchange, or bought it from a seller, then they are obliged to pay off the finance immediately. The fact that they haven't (though common in the trade to preserve cash flow) means that they have, effectively, defrauded the previous owner and the finance house. Insist on proof perfect that they have settled the finance before doing anything else.)
Not entirely true ,as a dealer finance manager for many years ,I was responsible for clearing outstanding finance .On more than one occasion I cleared outstanding finance .When I came to refinance the car two or three weeks later ,as we retailed it ,the previous finance company had not removed the HPI marker .
Even now it still occurs ,I went to view a Mercedes sl that had an outstanding HPI marker that was over two years old .The marker was removed when I contacted HPI .it can be a problem with finance companies not just dealers .
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Very true Tony, but in this instance the OP states: The dealer says the vehicle does have finance on it and they will clear it when we purchase and send us proof,not very happy with this and have requested it is cleared before we complete.It's looking dodgy but it's a biggish dealer.
That's not good practice and definitely questionable.
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All sorted,we got the written proof that the car was finance clear and did the deal.
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