help needed with outstanding finance on hpi

[vonscritch]

Hi all.

im thinking about buying a z4 from evans halshaw. i did an hpi check and it came up with outstanding finance so i phoned them and they said the finance is theirs, they took out finance to buy the car in and when it sells they pay the finance off, he said its quite common in the motor trade but it still means ill be buying a car with outstanding finance. if theres any dispute would the finance company just come and take the car, im a bit nervous about it now. Is it common practice?

Cheers for help

 

[sk93]

If you didn't know about the HPI, you could have been ok, as you'd have had a "good title".

now you know, you are not protected by a "good title" - even if they write it on the receipt etc...

AFAIK, this is NOT common practice - most dealers will clear the finance as soon as they get the car.
If it's genuine, ask to pay the finance yourself, and then the remaining to the dealer... that way you know it's clear.

If he doesn't want to entertain that, then as they're a big dealer, you offer to pay a deposit, and then pay the rest when he shows you it's paid off and clear.


Either that, or walk away as something smells fishy to me...

 

[lukez4]

I once bought a clio with outstanding finance which the garage in question took out on finance, same situation as yiu they told me they would clear it once it's sold, I asked for it in writing which they did before I brought the car and they did indeed clear it, if your that interested in this car ask for a letterhead written up with confirmation that they will clear it and yiu will be fine

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[lukez4]

And its generally common practice with dealers that maybe lower end and can't afford to buy them outright first

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[vonscritch]

I guess theres some comfort in evans halshaw being such a big company that it would be highly unlikely they would default on a loan but its still a bit worrying and I'm guessing their 3 mth warranty is worth jack

 

[Beedub]

i have never experienced this with large companies before and tbh..... it would put me off.....

choose another car where the dealer hasn't borrowed money to buy it, theirs plenty of good z4s about. imo of course..... No way would i expect evan halshaw to be doing that..... cash flow must be poor. Then it isn't much better in my business right now.....

 

[vonscritch]

Ok so I called the finance company (called lombard special schemes) and they said it was something called a stocking agreement and quite common in the motor trade so not really anything to worry about :?

 

[Worcester_spoon]

I used to sell cars - 'stocking finance' is very common - never heard if it being written against a car before though as it would usually be an overarching credit line secured against something more considerable (like a building).