Strange HPI issue

Relentless81

Relentless81

Relentless81

Soldato
Joined
18 May 2010
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12,852
I've already had my question answered but as I am one seriously paranoid individual and dont want to end up in the poo i'm just wondering if people in the know could confirm I am just being paranoid again and this is the reason why I am receeding and my forehead is a lot bigger than it used to be :rolleyes:

I have put a deposit on a car at a main Ford agent, its a one previous owner Toyota Corolla

I didnt HPI at the time as I thought because its a main dealer I didnt have to and when I asked the salesmen he said they wouldnt sell it if it wasnt HPI clear

I go home and I decide to HPI it and outstanding finance flags up

I ring the sales guy and he says its because the Main Agent borrow the money to buy the stock and repay it when it gets sold, i've worked at a dealers and dont remember anything like this before :confused:

I ring him back and get the finance company details, ring them and give the lady the agreement and the first thing she says is "we hold interest in that vehicle" She then doesnt say anything and I have to explain what the sales guy told me and she confirms this but wont give me anything in writing and I had to extract the info from her, she simply said I have to buy the car, the Main Agent pay off the finance and then a couple days later they give me confirmation of no interest

I know i'm being paranoid and I should get it bought but it seems so strange, so all of their second hand stock isnt HPI clear due to outstanding finance? The way she said "we still hold interest in the vehicle" just makes alarm bells ring a little :eek:

What do you experianced people think of the situation? :o
 
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its a ford main dealer - relax

The time to be worried would be if they were surprised that it had oustanding finance on it.

Of course they have interest in it - till the dealer pays them they still own it. But they wont once you buy it.

Whats most likely happened is that she has traded the car in with them with finance still on it, they have left the finance to be paid off once it finds its new owner. They have given the women cash off her new car, and got stock they can get cash for in return.

They dont pay off the finance, and wait for a new buyer like you to come with cash so it can be paid off - simples.
 
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MrLOL said:
its a ford main dealer - relax

The time to be worried would be if they were surprised that it had oustanding finance on it.

Of course they have interest in it - till the dealer pays them they still own it. But they wont once you buy it.

Whats most likely happened is that she has traded the car in with them with finance still on it, they have left the finance to be paid off once it finds its new owner. They have given the women cash off her new car, and got stock they can get cash for in return.

They dont pay off the finance, and wait for a new buyer like you to come with cash so it can be paid off - simples.
Click to expand...

Doesn't work like that, the dealer will use a 90 day stocking plan to purchase the car.

If the car had finance on it when it was traded in then the dealer settles that agreement.

Then the dealer takes out an agreement on that car to stock it and it's paid off as it's sold.

All the main dealers use stocking loans to finance their stock - it's cheaper than having £1000000 or whatever cash tied up.
 
Thanks for both the replies, Maz seems to be on the money though (see what I did there) as it matches what the sales guy said, I was just confused as i've never heard of this process before

Seems its normal and I am doing nothing but shortening my life expectency again
 
My understanding is it's common practice for dealers to fund their stock through finance (e.g. 60% of each vehicle is financed) to prevent too much cash being tied up in stock.
 
Maz said:
Then the dealer takes out an agreement on that car to stock it and it's paid off as it's sold.

All the main dealers use stocking loans to finance their stock - it's cheaper than having £1000000 or whatever cash tied up.
Click to expand...

so the finance is with the dealer then , rather than the previous owner ?

Still point stands - nothing to worry about.
 
I know i'm good now, thank for the replies apart from edscdk, who I need to thank indirectly as its scare mongerers like you who work for the media that enabled me to get the car for the price I am paying in the first place, thanks :)
 
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