When Finance Companies get involved…

Selling vehicles on finance is a necessary hazard of the car industry- It is a fact that many, many consumers buy vehicles on finance and therefore dealing with a good one should be a top priority of every dealer!

Pre-sale it is important to be happy with the procedures they set out for their applications and identity checks etc. You should obviously check the agreement they want you to sign and carefully check over the terms and conditions as some can be particularly onerous. You should seek advice on these agreements if you feel it is required.

The crucial issue we find though is how they deal with after sale complaints. We have experience with most of the finance companies currently operating in the industry and find that some are far more reasonable than others when dealing with customer issues.

Some finance companies are happy to work with the dealer and customer to find an amicable resolution whereas others blindly follow the provisions of the Consumer Rights Act (2015), some even misapplying it and making terrible, unfair decisions, often to the disadvantage of our dealers.

These companies are strictly the ‘purchaser’ of the vehicle so involving them is crucial in most disputes and you can only hope that they will be happy to be independent and not too persuaded by the Consumer.

The finance companies are somewhat at the mercy of the Financial Ombudsman Service (FOS) and therefore, in our experience, will try to avoid customers making complaints to them as each complaint costs £500.00. That cost would be passed on to the dealer if a finding was made against them.

The key in dealing with finance companies is to have a good working relationship but also have evidence on your side! Pre-sale checks are often vital but if problems arise getting an independent inspection done as soon as possible is always very helpful.

We would also recommend though that at the first sign of finance company involvement you seek advice from us so we can help advise on the specifics of the case and prepare the best possible defence.

Lawgistics Members can get advice on this and other legal matters by contacting the legal team on 01480 455500.


Authors: Stephanie Ball

Published: 11 Nov 2019


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