Finance outstanding on a car at dealership

Slinkie · 8 Feb 2019 at 09:56

Hi all,

I am planning on driving 2 hours to a dealership (Mazda chain dealership) tomorrow to buy a car in the spec I want. I have just HPI'd the car and it states there is outstanding finance.

I am going to call them today to talk to them about it but I'm not sure how this is usually dealt with. If this was a private sale I'd arrange to pay finance off at purchase and pay the balance to the seller. However, I would have thought I'd do this at a dealership.

What are your experiences of this?

Hyburnate · 8 Feb 2019 at 10:03

Seems strange, I'd expect they would have cleared the finance when buying the car? Ring first and see what they say.

Joe T · 8 Feb 2019 at 10:05

My guess is that the dealer has paid the finance but that it hasnt been processed by HPI yet. Definitely make sure it's clear before handing over any monies.

Semple · 8 Feb 2019 at 10:05

Does it say what it is?

It might be unit stocking, where the dealership puts finance on the car for something like £1 to allow them to cover it for insurance etc.

Abyss · 8 Feb 2019 at 10:14

Just speak to the dealer. I had the same when buying my A4 and it was due to the way the Audi main dealer procured their stock, ie they fund the stock through a finance agreement secured against the cars instead of having cash tied up in stock that is sat on their forecourt.

The dealer should take care of it all and you pay the dealer directly. All I'd want is confirmation that the finance has been settled and the finance company have no longer have an interest in the car.

Dis86 · 8 Feb 2019 at 10:31

Had the exact same thing on a bmw I bought from a main dealer. Only flagged when I came to sell it 2 years later though!

Skillmister · 8 Feb 2019 at 13:14

Had the same on my last car which they said was because of the way they got the stock in. Got the dealer to email me with confirmation it would be cleared on purchase, never bothered to check if it was but it didn't come up when i sold.

HoneyBadger · 8 Feb 2019 at 14:06

Had this on a HPI check I did on our family wagon before buying it. I rang the finance company, explained the situation, gave them the reg and the agreement number (Which was on the HPI check) and they confirmed it was all paid and just hadn't been updated. Actual words were "We have no interest in the vehicle"

Richie · 8 Feb 2019 at 17:21

Semple said:
Does it say what it is?

It might be unit stocking, where the dealership puts finance on the car for something like £1 to allow them to cover it for insurance etc.

^^^ What he said ^^^

If its Unit Stocking its also typically 3-9 months in length and gets cleared by the dealer when its sold.

mollymoo · 8 Feb 2019 at 21:53

Pretty much all motorpoint cars are finance outstanding, it's just how they buy them and nothing to concern yourself with.