I am in discussion with a private seller to buy a brand new car they have not taken delivery of yet from the manufacturer main dealer (it is awaiting PDI). They want to meet at the dealership on collection day, and do the deal there and then. They want no risk of potentially damaging it on the way home before the deal is done. My main concern is making sure I don’t buy a car that has finance secured against it.
The seller is advising both he and the dealer will be able to confirm it was paid for by bank transfer, so I think that rules out the risk he has finance through the dealer. I know it is possible to get a secured loan against a vehicle you already own, however I think that is very unlikely to be possible for a vehicle you haven’t taken delivery of yet. I know it is possible to get a personal loan, that would not be secured against the vehicle, so that would be fine.
My question is, is there any risk the seller could have a private secured loan secured against a brand new car (ie not through the dealer) which means he could have paid in cash, however still have a loan secured against it? I am unable to find example of that type of loan through google, so wanted to ask if anyone is aware of one.
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I am in discussion with a private seller to buy a brand new car they have not taken delivery of yet from the manufacturer main dealer (it is awaiting PDI). They want to meet at the dealership on collection day, and do the deal there and then.
It stinks and the reason you're asking here is because you've caught a whiff.
RUN AWAY!
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Who gas legal title to the vehicle.
Normally if a car has yet to go through PDI, it will be the property of the garage or manufacturer. A private buyer normally takes ownership on payment or delivery.
If the seller has merely placed a deposit - the garage could refund the deposit and deal directly with you.
You risk paying the seller for a car he does not own. If you don't understand what's going on - walk away.
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Yep, this absolutely reeks of something bad. As above, there is no reason why the dealer can't refund the deposit and sell directly to you. If the other buyer is trying to make a premium, he needs to make that a separate agreement.
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It is a limited run car, which you can no longer order (they are sold out). All cars have been preordered with deposits. The only way to get one now is to buy one from a private seller, or one that has been sold back to the trader..
I have no concerns about the legitimacy of the car, and have no specific reason to suspect the seller of any shady dealings, however I am trying to assess if there is a way to do the deal without exposing myself to risk. The seller has not paid the balance yet, so I suspect the car is not registered yet. If I don’t buy the car, the seller will likely cancel his preorder, get his deposit back, and it will go to the next person in a waiting list.
I had proposed he buys it, takes it home, we wait a few weeks, I run a HPI check, then we do the deal. He doesn’t want the risk of driving / storing it before selling it, so has suggested I meet him at the dealership on the day he goes to collect it, I inspect it there with him as he is taking delivery, and purchase it from him at the dealership (at a few grand above list price). I understand why he wants to do it this way, however of course I don’t want to expose myself to any risk. He and the dealer will show me that he paid cash and that he doesn’t have finance through them. I want to understand if there is a risk he could have a secured loan from an loan company other than the dealer, against a brand new car; if those types of loan don’t exist (I can’t find them), I don’t think there is a risk.
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If it's legit, he can pay the balance right now with an agreement to sell it to you for a certain price subject to a receipt from the dealer and clear HPI.
Yes, he might have finance secured against the car. More likely, he put the deposit down so he could make a turn on it but doesn't have the money to actually buy it. If he is genuinely worried about damage etc, I'm sure the dealer will let him store it there for a week for you to check it's clear.
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....., I inspect it there with him as he is taking delivery, and purchase it from him at the dealership (at a few grand above list price). ........
My snippets of accumulated wisdom in trying to run nice cars economically for several decades have no place in this thread from one with such magnificent affluence. But I am consumed with curiosity concerning the vehicle in question. Is the 'Any' rare? Rapid? Made of indestructible unobtanium? Gold leaf paintwork? Seats of blue whale foreskin? I think we should be told.
Edited by John F on 24/12/2022 at 09:07
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I'm gonna guess a GR Yaris.
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If I wanted to screw you - assuming I was the vendor - I would arrange finance to come into effect on the date of registration.
You can do any checks you like, but no check will show that as the finance is not in place. You pay by bank transfer, he collects his loan money - all on the same day - and then he vanishes with twice the car value.
You subsequently lose the car to the lending company and are stuffed.
Edited by madf on 24/12/2022 at 12:16
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Thanks all for your input. The risk madf highlighted could apply to any car you buy privately, regardless of the selling circumstances.
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Thanks all for your input. The risk madf highlighted could apply to any car you buy privately, regardless of the selling circumstances.
Do pleease tell us what this incredibly rare and desirable vehicle is, that makes it worth more than list price to your good self.
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Plot twist - OP seems to be the seller and looking for a watertight plan without arousing doubt from buyer :-)
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OP, whatever your involvement is in this dubious ploy, you've already made up your mind.
No one here thinks this is a good idea, maybe because most of us have been around a good while and can smell a dead rat a mile off, you won't get this scheme endorsed here.
Edited by gordonbennet on 24/12/2022 at 18:07
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The risk madf highlighted could apply to any car you buy privately, regardless of the selling circumstances.
Maybe, but as most people (rightly) wouldn't buy a car privately for the kind of money or anywhere near (unless from a friend or family member) I'm sure we are all assuming, it isn't a valid comparison. Buying a car privately means little or no comeback if there are problems with the car or the vendor, and only really makes sense at the bottom end of the price market where the profit factored in by the dealer outweighs the possible risks assuming due diligence from the buyer (service history, MOT history, visual condition, etc).
But its your money, your decision and your risk to take.
I hope it works out as you want it to, but I wouldn't be going anywhere near a deal like that!.
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I'm assuming you're paying a premium to take the seller's place in the queue.
Perhaps you could pay the dealer direct, and simply pay the 'seller' their fee for releasing their place?
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