Dealer hasn't settled finance

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Wed 7 Dec 2016 19:23
Dealer hasn't settled finance - damtom

hello.

I sold my car to dealer 2 weeks ago, 25th November. I didn't part exchange, just sold. Car is/was on finance which I informed dealer about, and also price they offered me for my car was lower than settlement figure. Dealer proposed to pay negative equity to them and they will settle whole amount with finance, which I agreed to. They phoned finance company(on 25th Nov) and they received settlement figure, which was due in 28days (this is false explanation later). I paid my negative equity on card, sign agreement, handover V5, before I left I asked dealer person when finance will be settled, he said : "today is Friday, they don't work weekends so Monday, Tuesday latest". I said that is great and left.

Wednesday I checked finance company online account, finance is still outstanding. Then I checked agreement I saw that "due in 28 days" which was quoted by finance company, I rang dealer and said when they are going to settle finance, they said they have 28 days for them to settle. I was not happy about that as 28 days from 25th November means 23rd December and my monthly payment goes out on 8th December. But then I got suspicious and phoned finance company to speak with them about this "28days" thing. I found out that settlement figure is calculated on 18th of each month and from that day is valid for 28 days. I asked them if dealer bought car on 25th November, and they asked for settlement figure that day, how long should be valid for, finance said 21days till 16th December. When I heard that I had argument with finance why they misled dealer company, but of course nobody will take a blame. nevertheless I asked finance to clear their mess and to contact dealer and informed them about correct settlement figures and time, which they did and finance phoned me back saying dealer is informed and new settlement figures has been emailed to them. So dealer is aware of correct day to pay off finance. after 16th settlement figure will change as it will show my direct debit payment on 8th December and dealer can pay less than it was said in agreement and I will be out of pocket.

Please advice what can I do and to who contact if dealer will not settle finance by 16th December? thank you in advance.

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Thu 8 Dec 2016 16:45
Dealer hasn't settled finance - damtom

are trading standards and financial conduct authority correct way to contact with this issue? thank you

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Fri 9 Dec 2016 10:45
Dealer hasn't settled finance - SLO76
I'm assuming you got a receipt or invoice listing the price offered by the dealer, the shortfall you paid and the finance settlement? If so then there's nothing to worry about, the dealer must stick to the terms of what you agreed. I'd also cancel the direct debit with the finance company but check just before its due that it's been settled. In cases like this when I'm buying in cars with outstanding finance I settle it the next day based on the early settlement figure. You didn't just shake hands and walk away surely?
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Fri 9 Dec 2016 11:10
Dealer hasn't settled finance - veloceman
I think you'll find that you are responsible for settling the finance before you sell the car in the terms oh your agreement.
Also if you cancel your DD without settlement this would be classed as default and could affect your credit ratings.
If payment is received before settlement deadline date you will get back all over payments made.
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Fri 9 Dec 2016 11:42
Dealer hasn't settled finance - SLO76
If you sell or trade in a car to a dealer while it has outstanding finance it is normal practice for the dealer to request a final settlement on your behalf and pay it off but as veloceman says the finance deal you signed is your responsibility so if the dealer doesn't settle then responsibility will fall to you so you must make sure the dealer does pay up and that you have paperwork to prove they've agreed to do so, this forms the agreement they have with you. I advised cancelling the direct debit but only after verifying the outstanding balance has been paid otherwise it could be construed as a default and affect your credit rating. However had you sold the car privately would've been required to settle the agreement yourself.

Edited by SLO76 on 09/12/2016 at 11:51

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Fri 9 Dec 2016 12:03
Dealer hasn't settled finance - damtom

yes I have paperwork saying about outstanding finance and how much they give for car, shortfall I paid on my card to dealer and dealer suppose to pay outstanding amount. only problem is they haven't done it yet. actually they can go for months until they will sell car without paying settlement figure. is that correct?

Edited by damtom on 09/12/2016 at 12:04

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Fri 9 Dec 2016 12:35
Dealer hasn't settled finance - SLO76
No, they must settle without delay. I'd call and ask them to do so immediately or you'll be taking it up with trading standards. The last thing any dodgy dealer like this wants is a couple of TSO's having an excuse to drop by for a visit. Keep it polite but firm and don't let them fob you off, they don't have the right to hold off on payment.

What they're attempting to do is simply hold on to the money as long as possible but at the end of the day they can't sell the car on with outstanding finance but might be hoping to have it sold on paper before paying for it... money for nothing.

Edited by SLO76 on 09/12/2016 at 12:37

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