Outstanding Finance on purchased car.
 

Main Dealers...

I saw the right car I wanted - Paid the deposit to secure the car, they prepared the car the next week - Tested the car - Happy with the car - Paid the full amount on the 30th of January. Couldn't pick up the car as it had an outstanding repair - Camera not working - Been waiting for the parts (Long lead time for part)- Got bored of waiting so done a vehicle finance check on the car - Didn't do the check at the time because I had trusted the dealers - Found outstanding Finance on it - But already paid in full - Dealers not aware and had to look into it. I was told it was going to be resolved - Still haven't been resolved.

Should I take the car with the outstanding finance on it hoping that it be resolved later by the dealer?
Its suppose to be illegal to sell an car on outstanding finance but I paid in full.

What are my rights? Can I get a refund/ cancel the buy? I paid in full by money transfer. 100%. Will the banks help me?

and the outstanding repair? Should I take the car and wait for the part and then get them to repair it. I haven't even accepted the car / signed anything- When does the car legally belong to me?

No compensation so far - No courtesy Car - No apologies. Just waiting. Nearly 3 weeks now. Really bad experience.... told I can collect the car as the camera doesnt effect the car. Whats your thought?

I would be insisting on a full refund. The dealer should of done a HPI check. Do not accept the car. Presume main dealer?

If so quite shocking. If you accept the car and drive it away, dealer can say he never knew and the finance becomes your problem, finance company takes car or asks you to pay an extra 10k or whatever to buy car as not yours even though paid.

My advice, insist on refund and run away!

James.

Yes- agreed - it is a main dealer - General Manager said he is sorting it out - It had to be done in writing so its taking some time. He said I will get a cert showing its been paid. But hoping to pick up the car this Saturday subject to the outstanding repairs being done - I dont want to get a full refund as I really want the car. I'm scared to ask for a full refund in case they say its too late or they said no problem and I lose the car I want. I don't really want to damage any good relationships with them - but I would like to know where I stand legally. If I didnt do that check - I would have been non the wiser and what you have said may have happened. By right they should compensate me for the vehicle check that I done.

I would have thought that the dealer has no legal right to sell you the car, as it is owned by the finance company.

Is it a police matter? Sounds like fraud to me.

Strange thing the car wasnt exactly on the system when I went to the showroom - it had a price tag on it. So I gave then a benefit of the doubt that it was down to some admin error. General Manager was surprised it had outstanding finance. The sales guy said its quite common for cars to have outstanding finance and its takes about a month or so to clear, he said the most people take cars on finance and it would have been flag up if I had took it out on finance but I paid in cash 100% which isnt really the norm.

Not sure I want to go to a police station and report a crime. All I want is to get the car with the outstanding finance gone , the car fixed so I can drive away happily ever after.

If its not resolved by Saturday - I will perhaps wait a little longer but not sure how long for? When is the cut off time for getting a full refund that is the question.

+1 for the running away bit.

Different laws obviously, but here in upside-down land if you buy a car from a licensed dealer then the title is guaranteed; it becomes the dealer's problem if they sell you anything which has outstanding finance on it (or "had", because whoever chases the money can't chase you - meaning they will chase the dealer).

Private sales are at your own risk, but the above is a major reason a lot of people choose to pay the extra money & buy from a dealer (also some auctions have dealer licenses as an incentive to get more retail buyers in with known clear title - 'cos it ups the auction prices).

There's no equivalent law there?

I’d insist on a courtesy car while you wait and the cost of the vehicle check back. If not, full refund and walk away.

All sound advice.

There are plenty of other fish in the sea.

A consumer affairs programme such as BBC R4's 'Money Box' would love a story like this. If the dealer concerned is reluctant to help, a call to the former may well bring the latter to heel.

You do not want the hassle if the deal should go bad. I too would walk away.

Regards, John.

P.S. This cautionary tale is a good reason why it is good practice to do a history check on any car you are seriously considering buying. They are not that expensive, especially in view of what you could lose if a vehicle should turn out to have a hidden past, not just outstanding finance. J.