Yesterday I purchased a used car from a dealer and paid in full with my debit card.
When I went to the petrol station to refuel the car, I noticed the driver door was not aligning properly when shut, and the top part was slightly sticking out (I still wander how I did not notice this when first inspecting the vehicle).
when I called the dealer he said he had not noticed either but was willing to repair the door.
we arranged for me to take take the car back next weekend for him to carry out the repair.
This incident though, made me suspicious,
I decided to do an HPI check on the car to make sure it had not been involved in an accident.
When I received the results of the HPI check I was shocked to find out that although there was no record of the car being involved in an accident, there was actually a record of outstanding finance been recorded against the car. The finance is with Black Horse by the way.
I did some more online research and after paying for another check on MSN Auto check, it actually showed that the type of finance is "Unit Stocking".
From what I understand from my online research this is a type of finance available only to car dealers/traders used by them to be able to stock their business with their product (i.e. the cars they sell).
Here are my questions.
1. Since there is still outstanding finance on the vehicle, and since I have paid for it in full, who is the actual owner of the car. Myself or Black Horse? Bear in mind that when I asked the dealer if there is finance on the car he said no, and he said that the car was absolutely clean.
2. Should I even be driving the car around or could it be taken away by the finance company?
3. What are the implications (if any) with my insurance company? If I am not the owner of the car is my insurance voided?
4. What is the position I am standing in in regards with the dealer? Am I entitled to request a full refund and my old car back which I gave him as part exchange?
5. Is the dealer obligated to clear the finance on the car?
6. Could he have sold the car to me if there was still outstanding finance on the car?
7. If things do not go well, can I take him to small claims court or any other avenue I should seek?
Appreciate any advice you can offer.
The fact is I like the car, and the guy I have been dealing with has been very professional and helpful so far.
But I would like to know how to proceed if things start to go wrong... if you know what I mean.
Again thanks in advance for your help and advice.