outstanding finance

jagter · 9 Aug 2021 at 16:24

The car that i'm looking for a second hand jaguar f-pace. The seller is a dealer. When they send me the deposit letter for the car, I checked the vehicle registration number and it has outstanding finance issue.
I let the dealer know about the situation and they said any outstanding finance has been paid on the Jag and we will warranty that for you.

Is this a normal process? All the article that I've read says don't buy and walk away if there is an issue about outstanding finance but I'm stil not sure about it. If the seller is a dealer, is it a normal process? I'm thinking the situation is likely someone is selling his house (but he is still paying his mortgage)
Can you advise what should I do? Is this a definitely walk away situation or should i ask some other things? I don't know maybe a paperwork that secure me, etc.

Temujin · 9 Aug 2021 at 16:34

If the seller is a reputable dealer and they are willing to guarantee the amount will be cleared on sale of the vehicle there probably isn't anything to worry about.

If the dealer is a bit shady though i'd probably walk away.

dlockers · 9 Aug 2021 at 17:25

It's fine if it's a reputable dealer.

Joe T · 9 Aug 2021 at 17:33

It could be the dealer funding plan that has been picked up?

What sort of dealer is it?

ShiWarrior · 9 Aug 2021 at 17:33

make sure its paid off before parting with the money i would have thought ?

Terminal_Boy · 9 Aug 2021 at 17:54

Huge red flag for me.

d_brennen · 9 Aug 2021 at 18:06

ShiWarrior said:
make sure its paid off before parting with the money i would have thought ?

This is what I'd be requesting

DRZ · 9 Aug 2021 at 19:00

Is it a main dealer or Bob's Motors? If the former I wouldn't really worry about it. Bob's Motors though could have stocking loans against it or other finance products secured against the stock which is quite normal, but I don't think I've seen/heard of it coming up on an HPI type report myself. I'd probe a bit and if not completely comfortable I'd walk away.

deardevildude · 10 Aug 2021 at 06:22

It depends on what kind of finance it is. Some dealers "finance" a car as they bring it in stock for insurance purposes (I used to work for a well known UK car dealer) but if it is a finance from the previous owner get it in writing from the dealer the amount will be cleared before you give them anything.

If you DM me the reg I will get you what kind of finance it is to check for you.