Given car from dealer but told no finance in place

[taffyboyo69]

Hello all

Please can someone help me I don't know where I stand.
I applied for car finance online which i was accept for and signed a pre finance contractfor a car I've seen in the car shop and I received a call from the car shop that everything is paid by the finance company so I went and signed a sales agreement for the car and drove away the same day now I've received a call from the finance company and asked how I've got the car as they haven't released the funds for the car to carshop I've spoken to car shop and they said it's all paid for so I contacted the finance company and told them this now they are saying there accounts department accidentally authorised the payment and I shouldn't have been paid out yet so I've got the car on my drive not knowing what to do as I've spent over £400 on it already can anyone help me as to where I stand as I've spoken to carshop and they've said as far as they are concerned it's paid for and they don't want it back.

[Kati]

Re: Given car from dealer but told no finance in place

[MENTION=39710]des8[/MENTION] [MENTION=71570]R0b[/MENTION] ... any ideas??

[des8]

Re: Given car from dealer but told no finance in place

Hi and welcome.
I suspect the finance house will sort out their internal problems pdq.
They have authorised the payment, the vehicle has been released to you.
IMO. if they then decide they want the agreement unwound because of THEIR mistake they will need, if you and the dealer agree, to compensate you both for costs you have incurred.
In the meantime continue to enjoy the car!

[taffyboyo69]

Re: Given car from dealer but told no finance in place

Thank you for the advice

[R0b]

Re: Given car from dealer but told no finance in place

As Des has said, there's a legally binding contract here and if their accounts department have paid for it, tough luck. If they have an issue, they might want to take it up with the person who authorised the funds.

[taffyboyo69]

Re: Given car from dealer but told no finance in place

So do you think I should insure and tax it as I don't want to lose more money on it

[des8]

Re: Given car from dealer but told no finance in place

If you want to use it ....yes.
At the moment is it "sorned"?

[taffyboyo69]

Re: Given car from dealer but told no finance in place

No not sorned and I have the green new keeper's log book part

[des8]

Re: Given car from dealer but told no finance in place

If it is not sorned, nor taxed/insured, as keeper you need to do it asap!

[taffyboyo69]

Re: Given car from dealer but told no finance in place

Thanks all taxed and insured

[taffyboyo69]

Re: Given car from dealer but told no finance in place

Hello just received a call from the car shop and they want the car back as the finance still is not in place yet and ive just found out it was them who made the error by putting my account as paid out not the finance company. yet if I hand it back I'm left without a car and also roughly £600 out of pocket as paid for the insurance and tax upfront also I paid £299 to have it treated with guardx when I collected it can anyone tell me where I stand please

[des8]

Re: Given car from dealer but told no finance in place

Where do you stand?... next to the car?

Seriously tho' there has been an error, and you shoud not profit from a genuine error, so it has to be sorted.
However neither should you lose because of another's error.

I would suggest a written response to the dealer listing your costs, and agreeing to return the vehicle on receipt of their payment.
At the same time you could ask if they can arrange alternative finance, or you will seek alternative source yourself.
In the meantime, as it will leave you without a vehicle you intend to retain possession until a suitable alternative can be found..

Others [MENTION=71570]R0b[/MENTION] might well have other suggestios

[R0b]

Re: Given car from dealer but told no finance in place

Depends on what stance you want to take. The question you have to ask is, if they take you to court on what grounds would they be able to take you to court and would it stick? Perhaps they may argue restitution (unjust enrichment) or mistake but I think you could still have a strong argument in that it was their own mistake and not yours which created a binding contract. So long as all of the elements of the contract are there, the contract should be upheld.

The fact is that a binding contract has been entered into. The purchase of the car was subject to the money being paid by the finance company, which although in error they then confirmed that the money had been paid and then proceeded to handing the car off by getting you to sign the sales agreement. In effect, you have got a car which merely cost you a small amount of money and if they failed to carry out the required checks before releasing the car into your hands then that's a bit of tough luck.

If it were me personally, I'd be writing back to them and holding your position and repeat to them that the agreement is a legally binding contract, it is not your fault that members of the business failed to carry out the appropriate checks resulting in a loss. That should have been verified before you signed the agreement and the car was handed over to you.

Your alternative of course is Des' route which is to list your losses in relation to this. I wouldn't perhaps expect them to pay back all of your losses because you have had some use of the car but if you did go through this route, then you should certainly start with that position.

[seduraed]

Re: Given car from dealer but told no finance in place

I would also pay the finance house each month. Or if that is not an option pay the amount of the finance you thought you were paying into,a thirty days notice account. That way if it goes to court you can prove intent to pay.