Dealers Stock and How they finance it.

[Azure123]

Got caught off guard last week after paying for my 2017 XE at the Jaguar dealership after declining to pay for it in full when i decided on the car a week earlier. Left a £1000 deposit instead and a week later was invited back in to collect the car and pay the balance. Straight forward i thought. Checked the car over on a ramp and was happy to settle the invoice. I was given the usual info packs including a HPI certificate by Experian and all was in the green except the finance box which stated finance agreement in place. I had just handed over £22,000 by a card payment.

When i challenged this I was assured the vehicle would be taken off the finance register with 48 hours at the latest. The dealer said all Franchised dealers regardless of the brand, Jaguar, Mercedes, BMW, Ford etc etc financed their stock to assist in cash flow. I realised immediately why they asked me to pay for the car in full a week earlier. It was to use my money to settle the finance and thus the car would be taken off the register before I collected the car. Not happy at all driving home knowing that while the car was still on a finance register I was second in line in terms of legal title to the car I had just paid for. Three working days later the car is still not off the register.

Had a look on the internet about garage financing their stock and it's full of examples of people who did as i did. Obviously at no time during my initial visits to the dealer looking and showing interest in this car did the sales person mention it had a finance agreement attached to it.

Drafted an e mail to the CEO of the dealership and after I have done my own HPI enquiry on Thursday this week I will be sending it if I discover the car is still showing a finance agreement is in place.

[mike020150]

I queried the same thing a couple of years ago on a non Jaguar I bought. On that occasion, the dealer didn't go under so I didn't have to worry but I'd guess, there's always that possibility. Mike.

[davidr]

Absolutely standard practice. Dealers can't afford to have huge amounts of cash tied up in stock on the forecourt so they use somebody else's money. Sensible business practice really.

[3.8etypephil]

Prior to handing over your money, insist on watching the dealer clear the finance on line, and get a hard copy of the transaction. If they refuse, walk.