HPI outstanding finance - Unit Stocking

Will Gill · 28 May 2011 at 10:12

Just HPI'd my new potential car and its returned with outstanding finance, I quote:

Outstanding finance

Recorded against
VRM
Description
M3 2DR
Date
19/05/2011
Finance house
LOMBARD BUSINESS FINANCE
Finance house telephone
0870 242 4875
Agreement reference
xxx
Agreement type
Unit Stocking

If you are buying from a dealer, you may come across this type of finance on your HPI report. Talk it over with your dealer, check their liability and get confirmation in writing that they will clear the finance on the car you are buying. Unit Stocking is a common type of finance agreement used by motor dealers to enable them to fund the vehicles on their forecourt.

is this all above board?
It's from a BMW dealer so I'm presuming it's fine I just wanted some internet loving before I pull the trigger

ta

Joshy · 28 May 2011 at 10:15

I'd have thought that the dealer would almost certainly clear the finance once a deal is in place?

Will Gill · 28 May 2011 at 10:18

that's my take on it too matey, but I just want internet re-assurance so I have some legal proof that fox said it was fine when someone takes away my shiney new motor...

nas · 28 May 2011 at 10:22

so what would happen assuming you was to ''pull the trigger''? I also thought this would've been sorted prior to putting it up for sale, unless the money you pay clears it and you get confirmation of this.

Will Gill · 28 May 2011 at 10:25

Well in my minds eye car firms probably spread the investment risk on cars sat on forecourts, and I'd imagine as joshy says once you purchase the car the agreement is satisfied.

however I'm just wondering if anyone has any experience, I suppose I should have searched for it but I prefer the personal approach so I have re-course once everything goes **** up

[TW]Fox · 28 May 2011 at 10:32

A dealer with 60 cars owns almost none of them, the whole lot is on finance. Quite normal.

BIGWEB · 28 May 2011 at 10:57

As Fox says. a lot of dealers will have their cars on a stocking plan.

Joshy · 28 May 2011 at 11:02

There you go Will, sufficient grounds to break Fox's legs if the deal goes **** up. What more could a man want?

Will Gill · 29 May 2011 at 09:02

trigger pulled

Fourstar · 29 May 2011 at 09:57

I realise this is a border case and extremely unlikely but what would happen if the Dealer goes into administration soon after completing the deal? Soon enough that they have your money, you have the car but the finance company has yet to be paid.

I wonder if there is a window of a few days where you could lose your money and the car?

Rybo89 · 29 May 2011 at 10:49

Doesn't help OP but when i use to work on recovery job, we took plenty of cars from dealers what had finance still on them. If the finance company want there car back, they can get it back and sell it on them selfs.

Though we did do jobs for Mobile Money who are biggest crooks going....