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M2 from dealer with outstanding finance ?

2K views 16 replies 12 participants last post by  sawda 
#1 ·
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 ?
 
#4 ·
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
 
#5 ·
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.
 
#7 ·
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.
 
#8 ·
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.
 
#9 ·
Ursy said:
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. :cool2:
 
#12 ·
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.
 
#14 ·
520d said:
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.
With BMW you can only pay with card if the card holder is the finance holder. Also you can only pay £20k at a time.

Anyone can do a bank transfer but this takes time (3 days I think). If you pay by card you get confirmation immediately.
 
#15 ·
Deadeye said:
520d said:
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.
With BMW you can only pay with card if the card holder is the finance holder. Also you can only pay £20k at a time.

Anyone can do a bank transfer but this takes time (3 days I think). If you pay by card you get confirmation immediately.
Paid for my cars by card in the past and well over 20k, no issues. BACS payments can take up to 2 hours but normally they are instant (send and receive loads of them for work). OP should just call the bank up and advise that a car payment will be made just to make sure it goes through. I wouldnt let all of this make you walk away from what is a great car but it's good like others have said to do your checks admnd ensure finance is settled first. Good luck.

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#16 ·
sawda said:
Deadeye said:
520d said:
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.
With BMW you can only pay with card if the card holder is the finance holder. Also you can only pay £20k at a time.

Anyone can do a bank transfer but this takes time (3 days I think). If you pay by card you get confirmation immediately.
Paid for my cars by card in the past and well over 20k, no issues. BACS payments can take up to 2 hours but normally they are instant (send and receive loads of them for work). OP should just call the bank up and advise that a car payment will be made just to make sure it goes through. I wouldnt let all of this make you walk away from what is a great car but it's good like others have said to do your checks admnd ensure finance is settled first. Good luck.

Sent from my SM-G965F using Tapatalk
The BACS payment might well be instant - I send them all the time - but it takes a couple of days for BMW to sort their act out and, I guess, check their bank account.

I paid off my M3 last year and had to pay £20k twice and £2k.
 
#17 ·
Deadeye said:
sawda said:
Deadeye said:
With BMW you can only pay with card if the card holder is the finance holder. Also you can only pay £20k at a time.

Anyone can do a bank transfer but this takes time (3 days I think). If you pay by card you get confirmation immediately.
Paid for my cars by card in the past and well over 20k, no issues. BACS payments can take up to 2 hours but normally they are instant (send and receive loads of them for work). OP should just call the bank up and advise that a car payment will be made just to make sure it goes through. I wouldnt let all of this make you walk away from what is a great car but it's good like others have said to do your checks admnd ensure finance is settled first. Good luck.

Sent from my SM-G965F using Tapatalk
The BACS payment might well be instant - I send them all the time - but it takes a couple of days for BMW to sort their act out and, I guess, check their bank account.

I paid off my M3 last year and had to pay £20k twice and £2k.
Fair enough, some accounting departments are more proactive than others I guess.

Sent from my SM-G965F using Tapatalk
 
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