Outstanding finance on motorhome

[Miggs]

Hi,

I've paid a deposit of £1000 for an ex-rental motorhome from a hire company.
I have done a HPI check and the results indicate outstanding finance.
Probably a no-brainer, but do I insist that is cleared prior to collection and be shown proof to that effect?

Thanks

 

[Wabs]

I think the company selling the vehicle have a legal obligation to settle the finance the same day it is sold, that’s what stocking agreements are.

 

[Wabs]

When you think of it, every dealer will not tie up thousands( possibly hundreds of thousand pounds) of their own money ( that’s if they had it in the first place) which they don’t,,,most dealerships use these agreements to buy stock,,hence the agreement,, it is a very common practice which virtually every dealer will have in position and use,,,,a personal finance issue is a completely different issue,,,I don’t think the OP has anything to worry about if they ve asked the right questions,

 

[Orion]

Why didn’t the selling company offer the information that there was an outstanding loan on the vehicle up front? It took the OP doing an HPI check to discover it and then they mentioned it. So I’d immediately be a bit suspicious of their motives.

As others have said, it might be doable if all parties with an interest are paid off separately and at the time of purchase, but if the seller wants to be paid first, with the promise of then settling up with the finance company, forget it.

 

[Wabs]

It doesn’t work that way, the finance agreement is between the dealer and the finance house, the vehicle is only used as a guarantee,,,where this gets confusing for Joe public is where the finance on said vehicle is held by a third party finance house is not settled prior to the pass over or sale of the vehicle to a dealer of other recipient….

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[Phill D]

It doesn’t work that way, the finance agreement is between the dealer and the finance house, the vehicle is only used as a guarantee,,,where this gets confusing for Joe public is where the finance on said vehicle is held by a third party finance house is not settled prior to the pass over or sale of the vehicle to a dealer of other recipient….

The problem is that only recently a number of vehicles were sold with the finance not paid.
There was lots of publicity about it.
So it’s a good reason for the op to take a careful approach with the seller and ensure they are not fleeced.

 

[Minxy]

Simon-Alan Kerr

Can you give us an 'insight' into how it works normally please chuck when you've got a minute.

 

[Wabs]

The problem is that only recently a number of vehicles were sold with the finance not paid.
There was lots of publicity about it.
So it’s a good reason for the op to take a careful approach with the seller and ensure they are not fleeced.

I totally agree, but there are different agreements,

 

[Wabs]

These unscrupulous dealers bought vehicles knowing there was finance on them, then sold them on without settling the finance, this is not the same as a stock agreement held by the dealership.

 

[Wabs]

By the way I’m not a dealer, when I bought my car 4 years ago, I had the same issue, and me being me,,did bucket loads of homework and investigation, to make sure I wasn’t being turned over,,that’s the only reason I know of these agreements

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[Wabs]

Simon Alan Kerr, will be a fountain of knowledge on this topic,, I’m sure he will give the best advice,

 

[Coastal Cruiser.]

Simon Alan Kerr, will be a fountain of knowledge on this topic,, I’m sure he will give the best advice,

Friday night, he’s out on the beer

 

[Wabs]

As he should

 

[pappajohn]

Think about it .....
They sell you a van for £70000 (example) then pay off finance of £40000.
So they effectively get £30000 for a £70000 van.

Walk away.

 

[Wabs]

Doesn’t work that way..

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[Lazyboy]

If you have concerns put the balance on a finance agreement. The new finance company will not pay said dealer until previous agreement is settled. Make sure it is a HP agreement and then if you were going to pay in full in "cash" to the dealer, settle the finance agreement immediately.That way the new finance company have full title and will pass full title to you upon settlement. Just make sure the new finance company do not charge a ridiculous "document" fee. (There is no legal minimum amount) and also check the "option to purchase fee' is not too high. (Again there is no legal minimum amount this has to be. It can be as low as £1.00. There just has to be an amount of money to be paid to transfer title.)

 

[Wabs]

The vehicle,,no matter what is is, is still the value it is,how the vehicle is bought means nothing to the purchaser,hence the stock finance agreement which the dealer arranges with the finance company,,,the vehicle has to be bought in the first place. So the vehicle is still the value of which it was bought at in the first place.

 

[Wabs]

If the OP is in any doubt, just ask for a settlement letter from the finance company.

 

[Sunrise]

Your driving down a steep hill in your motorhome with no brakes not only will you smash it up,you’ll do yourself damage as well

 

[DerryW]

The company has just responded and is telling me they will transfer funds to the finance company once I have paid and send me a copy of the release form a few days later.

That does NOT sit well with me. What if they don't?

Exactly, caveat emptor.

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[busby]

It is illegal selling a vehicle with outstanding finance is classed as fraud, plenty of information online about it.

It is only fraud if finance is not divulged,,BUSBY.

 

[Lenny HB]

It is only fraud if finance is not divulged,,BUSBY.

The dealer didn't declare it, the buyer discovered it with his checks.

 

[busby]

The dealer didn't declare it, the buyer discovered it with his checks.

So now he knows,,BUSBY.

 

[Minxy]

The dealer didn't declare it, the buyer discovered it with his checks.

To be fair though how many people buy from dealers without checking if the dealer has financing on it ....even a new one could have finance on it if that's how the dealer procures them.

 

[CamperManLez]

DO NOT hand any money over till you have the written clearance from the finance company and speak to them as well, the dealer should declare the finance company name and I believe there are other ways to identify that, I can’t remember how I did that as it’s some years back. It’s not a problematic thing to do but it’s you that has to action it.

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[StephandJohn]

Just another point. Do you feel that if there are any poblems with the van they will honour the warranty? Assuming you are getting a warranty.

 

[GAVLAD]

I nearly put a deposit down on a mh advertised on eBay as a private sale. It started to seem a bit fishy with her not wanting to view it at home or storage and that a quick sale was required. I did a hpi check and not only did it show outstanding finance, the finance company contacted me as they were trying to seize the vehicle due to a fraud scam ongoing with this vehicle. Police managed to catch up with them in the end. Morale of story is well done to the OP and lesson to all buying a motorhome is to do your homework.
As for the OP on this, you could offer to buy it with a view that you pay the outstanding finance and then the remaining balance to the dealer. That way you know that it’s been paid and there’s no outstanding charge on the vehicle.
That said, in my view, the dealer should have told you that finance is outstanding and that they would take care of this prior to your purchase.

 

[NoName]

Hi,

I've paid a deposit of £1000 for an ex-rental motorhome from a hire company.
I have done a HPI check and the results indicate outstanding finance.
Probably a no-brainer, but do I insist that is cleared prior to collection and be shown proof to that effect?

Thanks

Personally : I would want to see that whatever I was buying is clear of any debt before completion NOT after. If you have a gut feeling that the transaction is not kosher; walk away.

 

[MacroMad]

Dealing with a "Dealer" who needs your money to pay for ANYTHING is a B I G R E D F L A G.
They cant be very professional, have no funds at bank available, or just wide boys trying it on.
Get your deposit back. It's not theirs to sell.