Taking finance on a car purchase.

[Tfp]

I just though I'd share this.

We all hear stories about people finding out the car they purchased has someone else's finance agreement on it, or a dealer stocking loan that doesn't get settled.

Now I'm hearing about dodgy dealers taking out finance on cars they've sold where the customer paid in full, pocketing the money, then going bust.

So advice is to take out a finance agreement, even if it's a small one.

Why?

Because your finance co will check there isn't one already in place.

And anyone trying to finance your car after you've bought it wont be able to.

Thoughts and discussions welcome.

Tim

 

[Ianmc]

Surely that's fraud, a criminal offence.

 

[Tfp]

Surely that's fraud, a criminal offence.

Yes of course, but it's happened.

Customers won't ultimately lose their car as they have title, but it'd be a headache to sort out.

 

[Grumps]

Wow! New one on me Tim although it's a fair few years since I was in the trade. Thanks for the heads up

 

[Sean d]

I've just bought a new daily drive and got a trader that I know to do a HPI check

 

[Grumps]

I've just bought a new daily drive and got a trader that I know to do a HPI check

That's the way mate as long as they have checked any private plates it's been on aswell.

 

[Ianmc]

I don't really get this potential scam, but in any case would rather pay for a check than take out finance and pay interest to purchase a car.

 

[Tfp]

Wow! New one on me Tim although it's a fair few years since I was in the trade. Thanks for the heads up

Yes Dave, a new one on me also.

You know what it's like, you go to the auctions etc, speak to all the others and hear about all this stuff.

It seems when some dealers pack up, or go bust, they are leaving a trail of finance troubles behind. Stocking loans, not paying off finance on part exchanges etc..

It's awfully rare fortunately but I'll be taking a couple of grand of finance out on my next purchases for sure. A couple of hundred quid in interest spread over 36 months is less than a tenner per month of interest so not too bad for the protection it gives.

The trade is struggling big time at the moment, I can see many dealers going tits up in the next year or so.

 

[Sean d]

Yes Dave, a new one on me also.

You know what it's like, you go to the auctions etc, speak to all the others and hear about all this stuff.

It seems when some dealers pack up, or go bust, they are leaving a trail of finance troubles behind. Stocking loans, not paying off finance on part exchanges etc..

It's awfully rare fortunately but I'll be taking a couple of grand of finance out on my next purchases for sure. A couple of hundred quid in interest spread over 36 months is less than a tenner per month of interest so not too bad for the protection it gives.

The trade is struggling big time at the moment, I can see many dealers going tits up in the next year or so.

You can get a HPI check for a few quid, this also shows if the car has been written off, the trade in our area very buoyant at the minute and has been for a number of years

 

[Tfp]

I had to try and claim on HPi once, they were useless.

Car was Hpi clear on the day I bought it.

The finance company had forgotten to send the details to Hpi.

Hpi said their report was accurate on the day, and it wasn't their fault the finance company had forgot to send them the interest in the car.

Luckily my customer was deemed an innocent purchaser so didn't lose her car when they turned up to repossess it.

Another time I was at the bank buying a motor with an elderly chap.

He asked if we were settling the finance, or should he.

That was clear on Hpi.

So I don't trust it.

Their words "we are only as good as the information given to us"

And not all insurance companies tell Hpi about write offs, recently covered in detail by Auto Express.

Taking out finance when buying from a dealer gives you quite a lot of protection as the finance company shares the responsibility with the dealer supplying the car.

It'll also stop anyone taking a finance agreement out on your car after you've bought it. (Very, very, rare, but has happened)

I hope that explains things a bit better.