M2 from dealer with outstanding finance ?

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reidtastic
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M2 from dealer with outstanding finance ?

Post by reidtastic » Mon Sep 24, 2018 7:43 pm

Hi Guys,

I’m just looking for a bit of advice I’m in the process of buying an M2, I’ve taken the loan out and just done an HPI check and the car has outstanding finance.

The dealership said that this would be cleared when I pick up the car ? Is this normal ?

Personally I like to see no outstanding finance on the HPI check before I buy the car, by it doesn’t seem to be the case on this one.

The dealer said that the finance would be paid on the day and I could speak to BMW finance direct to ensure the finance was cleared. This will not show up on HPI for a week or so, so an instant report to ensure it has cleared wouldn’t really work on this occasion.

Is this normal practice with small Indy’s ?

Would I be better clearing the finance myself ? Is it possible for a car to be financed twice ? Or am I just being paranoid ?

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Re: M2 from dealer with outstanding finance ?

Post by Tooney » Mon Sep 24, 2018 7:57 pm

I'd would possibly pay Bmw finance direct and give the dealer the balance "if" the sale price is more than the outstanding finance.


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Tubes
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Re: M2 from dealer with outstanding finance ?

Post by Tubes » Mon Sep 24, 2018 9:44 pm

Not sure if it’s ‘normal practice’ but understandable. Keeps your cash flow in check and your business liquid. I would be doing the same rather than have £100ks tied up in stock.

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Re: M2 from dealer with outstanding finance ?

Post by reidtastic » Mon Sep 24, 2018 10:03 pm

I think the outstanding finance is 2k more than the asking price, so the dealer will need to make this payment prior to me arriving.

Yea My thinking was that this is normal for smaller Indy’s because of this very reason, I’ve been in the position where I’ve been looking in to cars before and tried an HPI check and they came back with outstanding finance in simelar dealerships. All 2 - 4 year old cars so in the more common finance age group.

Still feels a bit sketchy as it is 35k, I’ll see if I can phone bmw direct to see if I can get further info by giving them the Reg number

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Re: M2 from dealer with outstanding finance ?

Post by ASB1960 » Mon Sep 24, 2018 11:18 pm

If the car has been sold to the dealer then the "owner" is in breach of their finance agreement. I am assuming they in effect gave the dealer the car and some cash.

This is "naughty" but does happen.

Alternatively the dealer may have taken it on consignment.

In any event the dealer clearing the finance in you presence may not be enough. In theory the finance co should only deal with the debtor unless they have authorised someone else.

There is also the possibility that the payment - for some reason - is subsequently reversed.

You need the finance co to confirm you have good title. Not simply that thr finance is apparently cleared.

Proboems with settlement failing would be rare. But say the dealer went into administration the instant you drove out of the showroom and it subsequently turned out they had been trading whilst insolvent the the administrators may have a claim on the funds used to pay the finance.

Whilst dealers may, indeed often do, finance their stock rwputable dealersdo not do it by illegally acquiring a vehicle from somebody not entitled to sell it and using the previous "owners" finance.
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Re: M2 from dealer with outstanding finance ?

Post by wenklaw » Tue Sep 25, 2018 7:42 am

Personally I don't see it as a problem as long as BMW finance confirm the finance is cleared and all the documentation is in order. I would also insist on paying BMW finance directly, not the dealer, if the dealer refuses to do that I would walk away.

However to me it does seem a little odd for a dealer to be doing this, are they selling the car on behalf of the owner? It doesn't exactly instil confidence to prospective buyers IMO. Based on that I would probably look elsewhere and avoid the hassle if I could.

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Re: M2 from dealer with outstanding finance ?

Post by NARD » Tue Sep 25, 2018 7:48 am

Just me being a skeptic but any red flags and avoid. Why go into something that has any potential for an issue? When it comes to finances don't trust the word of a random.

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Re: M2 from dealer with outstanding finance ?

Post by odin » Tue Sep 25, 2018 10:26 am

Avoid unless the dealer clears the finance first with proof from finance company. Plenty of other M2's for sale.

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Re: M2 from dealer with outstanding finance ?

Post by reidtastic » Tue Sep 25, 2018 11:07 am

Hi thanks for the reply’s.

Yea I think the dealership is selling on behalf of an owner.
Does this make a difference ?

However I’m dealing with the dealer not the owner.

I think the only option is to do an HPI check myself get the finance details, have the dealership clear the finance, await the confirmation letter from the finance company. Phone the finance company to double check the finance is cleared and pick up the car when it’s cleared.

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Re: M2 from dealer with outstanding finance ?

Post by Ursy » Tue Sep 25, 2018 11:23 am

Get the dealer to clear the finance and show you a clean HPI before you give him any money.

He is the dealer doing the deal, and should assume the risks - not you.

If he chooses not to pay the finance after you've paid for the car, your on the hook for the £ outstanding.

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dorsetred
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Re: M2 from dealer with outstanding finance ?

Post by dorsetred » Tue Sep 25, 2018 11:48 am

Ursy wrote:
Tue Sep 25, 2018 11:23 am
Get the dealer to clear the finance and show you a clean HPI before you give him any money. He is the dealer doing the deal, and should assume the risks - not you.If he chooses not to pay the finance after you've paid for the car, your on the hook for the £ outstanding./quote]

This problem recently also highlighted a few weeks ago in the National papers, I can't remember which one however for me I'd definitily want a clean background before I went anywhere near this one, as others have pointed out the dealer can take your money give you the car and then a few weeks down the road you'll have the car snatched from under your nose. 8)
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Re: M2 from dealer with outstanding finance ?

Post by napes5 » Tue Sep 25, 2018 12:01 pm

They are not the debtor so seems odd that they can pay it off. If I was you I'd ask to see evidence of the finance cleared and verify this yourself before heading down to the dealership.
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Re: M2 from dealer with outstanding finance ?

Post by Motley2012 » Tue Sep 25, 2018 12:36 pm

Not unusual at all.
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Re: M2 from dealer with outstanding finance ?

Post by Deadeye » Thu Sep 27, 2018 12:27 pm

When you (or the dealer) pay off BMW finance they can send you an email straight away saying they no longer have an interest in the car.

As above though, it normally has to be the person who name is on the finance but I expect official dealers can do it.
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Re: M2 from dealer with outstanding finance ?

Post by 520d » Thu Sep 27, 2018 2:07 pm

Anyone can pay the finance off, I've sold cars with outstanding finance and the buyer has paid the finance company direct. The last one was an Audi.

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