Car Purchased From A Main Dealer

[Twincam.GTi]

Ok ladies and Gentlemen how does a friend of mine stand in this situation?

Sorry it's not a Toyota but find forum helpful on all vehicle related matters.

A lady who I work with purchased a MG TF (the modern one :( ...not the glorious TF from the mid 1950's with seperate mudguards and running boards) 5 months ago, which was about 6 months old and one previous owner. She bought it from an approved Main MG/Rover Dealer/franchise in the Birmingham area. Needless to say one thought no worries due to paying 'top book' and buying from Main Dealer.

Over last 5 months my work college did not really like the vehicle, not happy with style/driving position etc., nothing actually wrong with car, just not for her (should have had an MR2 I hear you say ...but thats another story :) ). So last week she decides to buy a new Peugeot Convertable 20...something-or-other (not into French cars I always remember my fathers Simcas and his Friends 404Ti Rallye rusting to bits even though under 10 years old!) and trade in her MG TF.....

...Yesterday has phone call from Peugeot Main dealer "Are you aware MGTF (your trade in) has outstand finance of 37months on it!" . Naturally she was not aware of this and paid for MG 5 months ago 'straight out'. Aparantly car was a 'snatch back'. Understandably she is in a 'right state' and very upset.

In light of the fact the MG was bought from an Approved/Official Main Dealer how does she stand with regards to ownership of car (and her money she paid for car?).

Very supprised in view of the oustanding finance situation that finance company hasn't snatched car back.

Any advice would be greatly received.

P.S. I have seen case's on Telly 'Watchdog' etc. with it happening with private sales but never from a main dealer!

[knowlson]

has she spoken to the main dealer mate? sounds a bit dodgy to me get down there and see what they have to say!!!

[Caz SR]

That sucks.

I'm pretty sure the main dealer has broken the law. They should have obtained a HPI / Finance check on the car before selling it on. Was the finance arranged via this garage with the previous owner? If so, it sounds to me that they have taken the car back (very dubious about this) and not cleared the history before selling on. Find out who the original finance company was and contact them to explain the situation and get more information.

Your friend should gather all her sale documents together & take copies. Legal advice may also be a requirement here?

Caz.

[Rash@R.A.Motors]

hi mate,

best thing to do is ring the dealer up - if its owing finance they will HAVE TO take the car back - It could also be a mistake in that the finance is cleared but just not off the Hpi record..

I've had this a few times all you gotta do is get a reference No of the finance owning and ring up the Finance Co. they will then tell you whether it has outstanding finance or not..

Rash.

[Twincam.GTi]

knowlson Posted Today, 11:06 AM

  has she spoken to the main dealer mate? sounds a bit dodgy to me get down there and see what they have to say!!!

Rash@R.A.Motors Posted Today, 11:23 AM

  hi mate,

best thing to do is ring the dealer up - if its owing finance they will HAVE TO take the car back - It could also be a mistake in that the finance is cleared but just not off the Hpi record..

I've had this a few times all you gotta do is get a reference No of the finance owning and ring up the Finance Co. they will then tell you whether it has outstanding finance or not..

Have just found out she has spoken to MG Main Dealer about problem (Was actually speaking to Manager of establishment). Turns out salesman who sold her the car was 'Dismissed' soon after (don't know what to read into that ...will tell you anything etc.). They claim they "will sort it out", hope it is quick for she wants to change to the Peugeot Convertable. She has choosen the Peugeot and fair play to Peugeot dealer they are holding on and willing to wait.

Charis_Yaris Posted Today, 11:20 AM

I'm pretty sure the main dealer has broken the law. They should have obtained a HPI / Finance check on the car before selling it on. Was the finance arranged via this garage with the previous owner? If so, it sounds to me that they have taken the car back (very dubious about this) and not cleared the history before selling on. 

Yes, I said the law had surely been broken

and yes, the previous owner did arange the finance via the garage (and then never keep up payments)

Will keep posted with next bit of info, just can't believe it could happen from a main agent.

[Twincam.GTi]

Rash@R.A.Motors Posted Today, 11:23 AM

  hi mate,

best thing to do is ring the dealer up - if its owing finance they will HAVE TO take the car back - It could also be a mistake in that the finance is cleared but just not off the Hpi record..

I've had this a few times all you gotta do is get a reference No of the finance owning and ring up the Finance Co. they will then tell you whether it has outstanding finance or not..

Rash.

Rash thanks mate,

She has reference number and has contacted Finance company and yes Finance is owing.

Peugeot Dealer have been very helpful as well (as opposed to MG Dealer who have been route of all this evil).

Thanks once again for your advice Rash (any luck selling your AE82 GT yet?)

and thanks to Charis_Yaris for backing up my 'Law' point

[Caz SR]

No probs! I hope she gets it sorted soon.

[reece]

If the main dealer sold a car with outstanding finance on it, then the car belongs to the finance company until the debt is paid off

However, she paid for it cash outright obviously the money hasn’t been used to clear the debt by the dealer

Luckily as she bought it from a main dealer so she may have some claim from them.

they (the dealer) should of made sure any finance was clear before selling the car on. also ‘buyer beware’, a HPI check would have revealed the outstanding finance

If it was a private sale she could end up losing the car and her cash

I would be round the dealers now getting this sorted

[Tardis]

Since this will exceed any claim that could be made through the small claims court, it's definitely time for a letter from a solictor. Writing a formal letter is going to cost about £100 and they will threaten legal action, costs and compensation. This should get it resolved quickly.

The garage clearly acted negligently and below the standard of professional care that Rover would expect of their dealers. Plan B is to complain to Rover HQ.

PLan C is the (local) papers. Don't do this yet because it's more useful as a threat, after the papers have been involved then there is no more pressure from this route.

Good luck.

[Twincam.GTi]

Latest is a Solictor is now involved (and compensation for incident is also being sort).

Ironically she did mention the local paper (but I don't really know if she would)

[Demonic Angel]

You'd expect dealers to be "honest" and "law-abiding"....

Just proves that theres no such thing - it'll make me think twice in future - thats for sure!

I hope it all gets sorted soon - it sounds like she has a good case against Rover though....