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HPI says finance is outstanding should I buy?


bodger00
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Hi I am thinking of buying a car from a sole trader (dealer). I have placed my deposit and have now carried out a HPI check which has returned that the car has outstanding finance. The car is an ex Bank of Scotland car which is only 8 months old.

I am concerned that I need to be very careful that when i purchase the car I actually own it!

Help smashfreakB.gif

What do I need to get from the prevoius owner "bank of scotland" to prove the finance has been closed off and the dealer i am buying from actually is legally able to sell it to me?

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99% of cars at dealers are on finance, just about all cars are bought on stocking plans, they settle when the car is sold.

I guess you do have to be careful with a sole trader though if he was to go but before the finance was settled it could be a bit of aggro, however they would come after him for the money as long as all the paperwork was in order.

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Forgot to say, don't mention to the dealer that you have done an hpi yet, ask him if he has it on a stocking plan first, if he says 'no' then you need to have a serious think what to do next.

If he says 'yes' ask him who with, if it is bank of scotland you are pretty safe imho.

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I wouldn't run a mile on this, just process with caution.

Ask the guy straight up about outstanding finance, if he's honest with you and permits you to speak directly to the finance company so you can ask where you stand.

If everything checks out, then nothing to worry about!

If you small a rat in that process, then, as other have said, run away!

Good luck!

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[ QUOTE ]

Forgot to say, don't mention to the dealer that you have done an hpi yet, ask him if he has it on a stocking plan first, if he says 'no' then you need to have a serious think what to do next.

If he says 'yes' ask him who with, if it is bank of scotland you are pretty safe imho.

[/ QUOTE ]

Totally agree with this method.

The HPI On the wr1 came back with finance and I asked the garage the same question. Got the answer that it was on a stocking plan and the finance would be cleared BEFORE I paid them the money to them.

Ask the dealer first if there is any outstanding finance of any kind, if he says no; walk away.

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[ QUOTE ]

Don't touch it.

My neighbour recently bought a car from a dealer which had outstanding finance he wasn't aware of.

The finance company came after HIM for the money.

[/ QUOTE ]

Nonsense. If he showed them the invoice for the vehicle the finance company would have absolutely no right to demand any money from him. Their case is with the dealer. He is an innocent party.

With regards to the HPI report on the car you are interested in, call the number for the finance co. on the HPI report and ask if they still have an interest in the vehicle. If not, ask them to fax you or email you confirmation of this. If they have, ask the dealer what is the situation with the finance.

Its not uncommon for finance still to be showing months after it was settled, particularly for lease cars (as this one sounds like it is) if they are disposed of in a job lot in an auction.

No need to panic SMOKE6.GIF

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Ok here goes. I have rang the finance company from the details on the hpi report ("The Bank of Scotland" the previous owners and the finance company, oh and yes it was a lease car).

Back to the point, the finance company says that they DO have an interest in the car, although they said there was a payment pending.

I have asked the dealer about this and he has given me all the spiel. Perhaps this is normal but as Booster says I am not going to go ahead until the finance company says they have no interest and I have written proof.

Would a fax be sufficient for legal proof?

The dealer (I don’t trust him much) says he can get this proof quickly but I want to hear it from the finance company not him! He said he bought the car from an auction and so this fits in with what some of you have been saying.

One thing for sure is that I am not going to get into a pay the finance company half and some to the dealer situation. If it’s not wholly the dealers car i.e. no finance left then no deal. Anyway isn't it a criminal offence to sell a car as a dealer when there is finance left on it?

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  • 3 years later...

Hi,

I want to part exchange my mini from a MINI dealership. I have found one and I ran an HPI check on it and it has outstanding finance unit stocking with BMW Leasing House UK. I haven't bought the car yet, but now I'm a bit suspicious. What do you recommend?

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Hi,

I want to part exchange my mini from a MINI dealership. I have found one and I ran an HPI check on it and it has outstanding finance unit stocking with BMW Leasing House UK. I haven't bought the car yet, but now I'm a bit suspicious. What do you recommend?

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Hi,

I want to part exchange my mini from a MINI dealership. I have found one and I ran an HPI check on it and it has outstanding finance unit stocking with BMW Leasing House UK. I haven't bought the car yet, but now I'm a bit suspicious. What do you recommend?

Nothing to worry about at all. The majority of cars for sale on forecourts are financed in this way. The dealer pays the finance company for your car before you take it and will be able to give you a letter from BMW finance to this effect.

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