Finance outstanding

Pat201

Hello All

I'm looking at a car tomorrow in a franchise garage (Skoda dealer). It's a 212 . Garage said that car was owned by a couple .

I did a cartell report and see it has 2 owners. First owner only had it for 7 months. Does this look like a ex demo car?

Also it's coming back as having finance owed but commencement date is 9th August 2024? This is a very recent date for finance to start as 2nd owner bought car in 2022. Can anyone think what this means?

Am I safe buying this from a proper garage ?

PAT

goochy

Don't think garages are listed as owners ??

gipi

It's likely that the garage have financed the car rather than a previous owner

My other half had the same experience when buying a few years ago. When the garage took the car in from previous owner, they raised finance on the car while it was sitting on the forecourt. When the car was sold, the finance was cleared .

Common practice, I understand.

The garage will confirm for you if this is the case.

goochy

Why would a garage raise finance on one car ?

bazz26

Demonstrators are generally kept by dealers for 3 months, not 7 months. 7 months would suggest that it might have been a dealer courtesy car or more likely a rental/hire car.

Pat201

Should I worry since it is a main dealer that's advertising car ?

Avatar in the Post

Would you be financing it… if that’s the case the finance would be refused as some other company has a lean on the car.

Pat201

No I'd be purchasing outright. I just don't understand why a main dealer would take finance out on a car they are selling

User1998

https://www.boards.ie/discussion/comment/122613604#Comment_122613604

Its completely normal. All big dealers take out finance on all their cars. Otherwise they would have millions of euro tied up in cars on their forecourt. Its called a Stocking Loan.

mickdw

https://www.boards.ie/discussion/comment/122613604#Comment_122613604

They take finance out to buy the cars into stock.

goochy

I assumed they just had a big loan of say a few million

Pat201

Thanks folks. I will feedback how I get on. Pat

mickdw

https://www.boards.ie/discussion/comment/122614092#Comment_122614092

I'd imagine they used to do it that way but likely banks wanted some security against their lending.

I'm sure in the past dealers have gone bust with huge overdraft/loan and banks struggled to get money back.

JVince

https://www.boards.ie/discussion/comment/122613604#Comment_122613604

Standard rolling credit secured on stock.

Keeps finance costs low as the finance company has a call on a physical asset.

R.O.R

Type of finance on the Cartell report is "US" - Unit stocking - there's very few dealers out that that don't use Unit Stocking for finance. Save tying up thousands, or hundreds of thousands of the dealers own money.