with your experience in the motor car finance leaseman what happens to the finance companies that are duped by rogue car dealers and the dealers have went out of business do the finance companies have insurances to cover these losses?

Thanks

I would love to go into detail but currently at court with this issue.

I take my car to Rogue dealer they dont want to buy say they will refer someone if they are approached and I agree to pay them a referral fee. They refer someone but act as if they are my agent. At no time did I give them my car, keys, log book or Mot so they never had the goods in their posession. They sell my car to a referred buyer who they arrange finance for. They then go out of business immediately all most. The finance company having paid out on the car then come to me saying they own the car. I say no don't know anything about which I didn't they raise court action to obtain the car. At the last hour they make an offer to settle out of court for me to take an amount of money and them to receive the car. They do this to reduce their risk of loosing even although they don't think that they will !!! I am considerably out of pocket bearing in mind I have fought this and incurred legal costs they agree to pay their own and the deal is that I pay mine. I am wondering if somehow they still have the purchaser tied into the deal somewhere along the way?

thanks for throwing any light on the situation

We didnt sign any agreement with the rouge dealer we are still in posession of the V5 keys and car. No connection with the dealer however we were the easy target for the finance company as they could not pursue the rogue dealer who had ceased trading. We were not the only ones affected others had given over their documents as well as their cars. They took a photocopy of our V5 used it to raise finance the brooker also involved had went into liquidation so that too was dodgy, finance company raised court action and at the 11th hour prior to court they decided to make us an offer to settle out of court. Litigation expenses for us to defend totalled 7k if we lost we would have paid in total 16k the car was only worth 17k if they lost they stood to loose 44k. The finance company is large well known but like you say relied on a brooker to propose finance from a garage that was doing underhand deals.Their judgement was indeed wrong but it was us that paid the high price for their stupidity. The only thing to make me feel better is the fact that they paid out total 37k for a car that was worth trade price 17k at best. Wondered if they would now sell it through a dealership to try and obtain more money for it. They clearly thought that their case was precarious and that is why they made an out of court settlement. When everything has been concluded it is my intention to name them and the circumstances of my case so that others may benefit and avoid the same pitfal.

I can now update on my situation. We did not sign any paperwork with the Dealer to authorise them to sell our car on our behalf. We did not leave our vehicle with the Dealer on a Sale or Return basis. The Dealer arranged finance on our car with a well known finance company and they were paid the money by the finance company. The Dealer then ceased trading. We knew nothing of the transaction having taken place until we went to sell our car and there was a HPI note of interest placed on our car by the finance company. We went to the police who informed us that we had not suffered any loss we had the 2 sets of keys the car and the V5 so therefore no fraud had been committed. 1 week later we were served with court papers the finance company were claiming title to our car. We then entered into lengthy court proceedings which cost in total £9,500 two days before the court was due to hear evidential evidence the finance company offered us £5k for our car on the condition that we paid our own expenses and they paid theirs we refused. They increased their offer to £10k then £12k then finally £14k again on the proviso each party paid their own expenses. They initially paid out £23k on the car to the Dealer they were now offering us £14k so in total they were paying out £37k on a car that showed a book value of £17k and they had their own fees to pay we estimated in the region of £6k making a total outlay of £43k. We accepted their offer based on the fact that we had already paid out £9,500 in solicitors fees and stood to pay if we lost the court action another £10k as well as their fees of £6k total we stood to loose £25,500k. I am disgusted that the finance company Santander Consumer Finance took this matter as far as they did hoping that we would crumble and walk away we would have loved to go the whole way with this but the effect it has had on my wifes health and the stress we have both suffered during this 10 month ordeal has been immense. A word of warning to others the finance company will try to use bully boy tactics they will also hope that you will not fight your corner. Please do not leave your car with a garage on a Sale or Return basis despite the fact we did not do this they tried to say we did and in the end when we could prove that we did not they did not have a case but in civil law it is based on probability. Tony G I can assure you that the figures I quote are indeed accurate and yes everyone we tell our story too can't believe how something so clearly fraudulent could take place and the finance company would come after the person who has nothing to do with the transaction but we all know wny it's because they had no one else to go after to try and get the money back they had foolishly paid out to a rogue dealer....