Outstanding finance

Buying a ‘5 and Insurance advice Buying Advice
2

Hi everyone,

First post - be kind!

I’ve just agreed to a PCP deal on a 17 plate Mazda MX-5 RF and am dealing with a Mazda dealership in the London area.

Having run a precautionary HPI check I can see there’s Demo Stocking finance dated 25/02/17 (prior to 17 plate being launched) on there and Unit Stocking (no date).

The car is coming with private plates on - the story being the guy didn’t have it long, got a job in Singapore and sold it back to the dealership.

Basically, I’m surprised to see the demo stocking on there based on the above story. 

Thoughts? Anything to be concerned about? 

I’ve asked for written confirmation these will be paid off once my finance is in place.

The dealership had an identical model, same colour, advertised on Mazdas used car pages.

I assumed it was the same car (plus when he sent me the link to see MY car on autotrader it was a mix of photos of the two regs) but salesman says they were different and that demo car was sold.

I did wonder if he was getting confused though and perhaps that was the same car and pics showed it’s original reg.

HPI check shows no previous owners though. If it was a demo, then was sold to the guy who went to Singapore, it would be 2 owners right?

I’m being paranoid probably. 

3

I didn’t know they did PCP on used models. 

4

 

Becoming more common, if it shifts a unit and brings in some revenue…

5

My understanding is that PCP can be on new or used cars up to a few years old, whereas leasing is on new models only.

6

Leasing is just another form of finance and can be used on new and used items not just cars.

As cars are relatively inexpensive item in the real wold where for instance a rail locomotive will cost say £4,000,000 it is unusual to see secondhand cars leased but not so in larger commercial equipment.

7

Something doesn’t sound right. If it were me, I’d firstly ask to see the log book. That should have the name of Mr Singapore on it and any previous owner if it was a demo car before. Secondly, I’d want the finance cleared before I bought it. The last second hand vehicle I bought had outstanding finance, I paid my money directly to the finance company to clear it. The seller never saw a penny, just sign over the logbook.

8

Thanks all. I’ve had written confirmation from the salesman at the dealership that outstanding finance will be cleared prior to delivery. The broker I used is satisfied with the dealership explanation also.