Buying a car with outstanding finance from a dealer

Wang Computer

Wang Computer

Wang Computer

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18 Oct 2005
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The car I've just paid a deposit on isn't currently HPI clear. However the dealer in question has a) given evidence that he has paid off the outstanding finance and b) informed me that as a buyer from a dealer, I have no legal liability in the case of the finance being unsettled. Is it safe to take the car or should I wait to get the HPI certificate before making the final purchase?

Apologies if this question has been asked previously...
 
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What is the car? Unless its something special and/or at a great price, i wouldn't bother with the faff.
 
The car is only a bog standard Ford Focus... Nothing special. It was taken by the dealer as part exchange.

As I said, the finance has been paid, it just takes a while for the finance company to create the necessary paperwork to reclassify the car as clean. The dealer said I could wait until next week when he would be able to produce the HPI document or take the car tomorrow as I have no legal culpability in the case of outstanding finance on the car.
 
This is quite normal, the HPI will show finance owed because the previous owner traded the car in at the delaer, you get a letter from the dealer (assuming its main dealer otherwise I probably wouldn't do it) stating that the finance will be cleared off when payment has been received from the buyer, after that you get a letter of no interest from the finance company
 
It would depend on the dealer for me, if they are a main dealer with a good reputation then I wouldn't have an issue. I have often traded in a car with finance on it and I know it has taken a week roughly for the finance people to get the paper work back to me confirming the agreement is settled. I imagine it is the same with the HPI paperwork.

However if it is a smaller dealer only with a few cars I would walk away. If it is a standard focus you can probably go into most dealers or car supermarkets and get a similar one with none of the worry.
 
If it's from a dealer, then couldn't you return it under the sale of goods act, as the sale would have been misrepresented in quite a large way...

I would have thought hpi checks are only really nessesary for private sales?
 
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If the guy says he is happy to wait until it shows clear to hand it over then just do that, life will be simpler if you don't take possession of it until its ckear- even though ultimately it shouldn't be a problem
 
It's highly likely it's paid. However if the register doesn't update properly it can be a pain in the ass to get it sorted out right. Something the dealer will lose all interest in once the op takes ownership of the car - and something he shouldn't even need to bother getting involved in.

Wait a few days and it either goes away or becomes apparent there's an issue of sorts and he can move on to another car.
 
Get confirmation in writing from the finance company that they no longer have an interest in the vehicle. The dealer may already have something if he's settled it.

HPI can take weeks to update.
 
I called the finance company yesterday afternoon. They seemed surprisingly forthright given the limitations that data protection legislation is supposed to have on these sorts of things. The chappy informed me the finance has been paid, but the cheque is in the process of clearing with the bank and that I should call back on Monday.

The dealer is happy to store the car until the issue is resolved so I think I'll do that.

No, the car isn't special and I could find other similar examples, but this dealer is very local which cuts down on hassle and lift begging on my part. Moreover they offer a warranty that a private sale wouldn't.

Cheers for the advice, all.
 
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