We knew it! Car Finance company caught red handed!

welcome to shops garage and uh I've got big news well it's big news if you're a car trader cuz it's regarding something we've suspected for a long time in the car trade now if you watch Channels like shift in metal and car trader Pro what You' have seen recently is quite an increase in finance companies dumping cars back onto dealers Now by that what I mean is when you buy a vehicle and you take Finance out on it the finance company becomes the owner of the car you're not actually the owner of the car the finance company is until you've made all your payments now what often happen is if someone has a problem with the car they will stop the payments on the car they'll stop the the finance payments on they complain to the finance company and then the finance company as the owner of the vehicle will go back to the dealer and say you need to sort this you need to fix it or they'll literally just dump the car back on the dealer they'll send the car back to the dealer and and they will withdraw the payment they made to the dealer for the vehicle now most of the time they do this on the basis of saying using the consumer rights act and saying that the vehicle must have been faulty at point of sale if XY Z has happened now if the vehicle is under 6 months old the dealer has to prove the VA fault didn't exist at point of sale if the vehicle is over 6 months old it's up to the purchases has approved that the fault existed with the vehicle so just to clarify a lot of people misunderstand this with the consumer rights act it's not within the first six months that anything goes wrong with the car the dealer has to fix it the dealer only has to fix faults that are considered that existed at point of sale they're a fault when they sold the car because as you use a car naturally as you use a car via wear and tear a used car things are going to wear out and the law and allows for that and understands that's the case so it's not saying the dealer is responsible for something that wears out in your car in 4 months time it's saying you're only responsible for faults that would have existed at the point the car was sold so how do you establish that the fault existed at point of sale well like I say within the first six months the dealer has to prove it didn't exist and they might do that via theot report or they may have done a PDI that shows your electric window did work when the car went out your air conditioning was cold when the car went out uh your tires were at however however many mill when it went out these kind of things so if a dealer is doing his job properly he recording things correctly sending cars out with brand new mots on it freshly serviced made sure the service histories are up to date on them then they're going to be able to justifiably say actually that wasn't a fault at point of sale so the question is how are these finance companies dumping cars back on people as I said as you've seen in other people's videos after seven eight nine months I even heard of one uh nearly two years on a finance company dumped a car back and said that it had a fault at point of sale how are they doing that well what they're doing is they're getting independent reports independent professionals to assess the vehicle provide a report that says actually that fault will have existed at point of sell and as such if it goes to court a judge is going to say well the expert says that that fault would have existed at point of sell for there for Mr dealer even though it's 7 eight months on even though it's a year on 24 months on Expert says that fault would exist at a point of sale so you need to refund the customer for the car or do the repair now the trouble is the finance companies are the people employing these independent people and these independent people may well work for the same company over and over and over again because as a finance company you got thousands of customers out there with cars you're going to have probably hundreds of people complaining there's a fault with the car so you'll be able to keep one of these independent assessors pretty pretty busy now I think you can see where I'm going with this I've just had notification that a finance company's been caught out and the finance company has been caught out telling the independent inspector in advance of going out to the car what they need to find what the conclusion needs to be so they've gone to the independent tester and said you need to come back with a report that says I'm going to be a bit careful because it's Ono at the moment says x y and Zed will have been at fault at point of sale now I can't remember exactly how this was found out whether it was because I think there was I said there's an ongoing uh case a claim against the dealer and I think perhaps um maybe an email or something that wasn't supposed to be transferred over was transferred over now I think for a while some of us have thought well how independent are these independent people because at the end of the day they're being paid by the finance company like I said they're probably getting a lot of work off the finance company and these reports always seem to find in favor of them to be honest you kind of know if you end up in court like say one these reports the chances are it's not going to go in your favor so the fact that one of them has actually been caught out um might go to explain why there has been quite a big increase we thought now we thought that these sort of claims had increased quite a lot and we're seeing more cases of cars coming back under finance and it might be quite clear now why that is the case if they're pretty confident that every time a car goes back a dealer is going to have to swallow it do they give the you know do they keep the payments the customers made up to that point do the customers going to get a refund are they getting a refund of 100% in their money or is they is the finance company getting to keep some of their payments I don't see how they can lose either way to be honest so what's the solution well I guess the only solution for dealers is is every time you get one of these you're going to have to get your own independent guy to have a look at now he's not going to be probably so in your favor because you're only going to be doing one or two in once in a blue moon but you're gonna have to get your own independent report to try and counteract the other one I think at the end of the day like I say I think the finance companies rely on deers just not having a Time inclination to do that um tie themselves up nuts over something they think they might not still win it's easy to just take the car back yeah I say when you're seeing on these other channels these crazy examples of people being asked to take cars back eight nine months or more down the road this might go some way to explaining why that kind of thing is happening you can see why I don't like doing Finance I don't really do Finance I don't push Finance are not really interested for the very small amount of commission you really get versus all this Hassle and this potential of uh of comeb back that later on down the road I don't especially someone who's selling cars that are 10 years old and could be 80,000 mil plus people are bad enough with a warranty that's three or six months wanting all kinds of um fairly unreasonable work done on an older vehicle if you add into the pot a finance company that's going to pull this kind of Malak who wants to get involved in it anyway nice that one's been caught out and I thought you guys would be interested in that little bit of Insider information don't forget our raffle for this fantastic freshly oted Mercedes CL is now up and running epic looking car uh if you missed it there's a video on it earlier on in the channel so go back a couple of days there's a video on this on the channel it's a fantastic motor incredible condition we've just said I just freshly moted it and serviced it and 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Channel: Chops Garage

Views: 48,132

Keywords: Car Finance, Car Dealer, Car Sales, Car Handback, Handing Back Car, Auto Sales, Auto Finance

Id: ntFzgsVIGGg

Length: 8min 47sec (527 seconds)

Published: Wed May 29 2024