Bike sold illegally on finance

[tafflington]

Hey everyone,

First time posting, I was just looking for some advice.

I recently bought a pre-registered motorbike from a Honda dealership in Bradford. I bought it around 3 months ago but the dealership registered it May. He told me they often register one of the bikes purchased when buying a large number of them for one reason or another.

Either way, it was still brand new and I got it £200 cheaper. I paid for it in full, without finance.

I'm leaving the country soon and won't be back for atleast a year. So I've decided it makes more sense to sell it.

I had a buyer for it today who did a finance check on it while I was there and it's come back showing as being on finance.
The registration date adds up and it seems pretty clear that the dealership just owes payment on it.

I'm curious, have they broken the law by selling the bike with outstanding finance, and does this void the purchase?
Could I technically ask them to refund me and take the bike back?

It is registered in my name and I do have the log book.

I've only done 67 miles and haven't caused any damage to it.

On the other hand, I presume they will be at the very least, obligated to pay off the finance?

Any help would be appreciated.

Thanks
Alex

[CaNsA]

[Beehive Bedlam]

[iooi]

Ring the dealer and ask if its on finance....

Other option could be its a error. Was it the correct reg plate entered?

Try a hpi check yourself.

As a aside. £200 off was not enough for a pre-reg bike.

Who is the dealer?
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Just because my bike was A DIVVY, does not mean i am......

[tafflington]

Hi, and thanks.

The buyer was actually a neighbor so I had a look at the check and it all seemed correct. He gave it all the right info.

The dealer was Padgetts Honda in Bradford.

It was my first bike so I guess I didn't know how much pre-red was worth :-/



Edit:
I'm going to ring them tomorrow, I just wanted to know where I stand I guess. I would expect the man who sold me it doesn't know, surely their legally obliged to tell me or put it in the contract of sale?

[Beehive Bedlam]

[tafflington]

Oops, sorry that's the one! Batley...

[P.addy]

3 months. 67 miles. Why did you buy a new bike to do such little miles you'd lost a fair bit rolling it away. I'd like to see how this plays out.

[iooi]

[tafflington]

That's fair enough, Aslong as they fix it sooner rather than later!

I bought it not long before the bad weather arrived and didn't appreciate how bad the garden would be in all this rain! So I just planned waiting for the good weather to come back

Plans to leave the country only arose 3 weeks ago, so yea I lost a bit of cash. Not too much though, Padgetts have lots of CBF125s they appear to want rid of, so it went from 2,699 to 2,450 and after the pre-registration it went to 2,250. Standard price was 2,450 but they advertise as used because Honda won't let them sell new bikes for the wrong price.

I only plan to lose 400-450 on the sale.

[.Bishbash.]

[tafflington]

Yea I was concerned with the risk... I'll probably avoid trying to void the sale incase they play me at my own game!

[ScottT]

In the meantime keep it well locked up, if it gets stolen your insurance will pay out any outstanding finance first.

[P.addy]

Ok so it's a CBF. I hope it covered up and not left to get rained on. All that flux yo.

FWIW my nephew bought a mint one. Only a few months old for 1300. They drop fast.

[Rogerborg]

Wait a second. Why would a main Honda dealer use finance to buy a Honda, from Honda? Anyone in the business able to shed light on that?

I wonder if they registered a couple of bikes, arranged finance for another buyer and put your registration number on their paperwork. Presumably someone's being making payments on it.

Either way, what a monumental cock up. I'd get the paperwork together and get down there. Cheery face at first, mistakes happen, it'll come out in the wash and all that, but I'd want at least a surreptitious audio recording of the conversation in case it goes sour.

Hopefully not, but what if the finance company tells them to do one about changing the details? To see you right, the dealer would have to pay off the finance on "your" bike, which would effectively give the owner of its evil twin a free bike.

At the first hint of fobbing off, get your local Trading Standards involved.

Best of luck.
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Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[Irezumi aka Reuben]

Instead of getting advice off a well meaning bunch of forum users contact trading standards immediately. They should give you the correct information and the best way to proceed.
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Pictorgraphicalfantastical

[STONEY!]

I've had quite a few near enough brand new bikes come through showing finance, apparently what happens is someone goes to get finance on a brand new bike, dealer registers it with finance company, buyer pulls out and although there is no actual finance on the system the finance company have already logged an interest in the bike so shows up on hpi reports. Usually fairly easy to resolve.

[BrownTrousers]

If bike dealers are like car dealers, stocking loans are very normal:

Dealers can't afford to buy all their stock outright and then just wait to sell it, so they get loans covering each vehicle (usually from the manufacturer themselves) to help them finance a decent level of stock.

I suspect someone somewhere just forgot to press a button to clear the above. A full HPI check should reveal the name of the lender which may confirm this.
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Bikers make great organ donors - add your name to the register
Ducati Multistrada 950 | Triumph Tiger 800 XR | Honda CBR500R | Yamaha YBR 125 Custom

[Shaft]

[Petemate]

Blimey -what a lesson for us all. So even when buying either a bike or a car from a dealer, good policy to do ones own HPI check first! I will definitely remember that for the future.
Good luck OP in resolving this; I am sure it will be sorted, but for you time is important and someone needs to get the lead out of their trousers.
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82 not out....1983 Honda LA250 Custom
2008 Saab 9-3 1.9 Tid 150 Vector Sport estate
2005 Stirling Eccles Topaz 2-berth

[waffles]

A friend got caught like this with his car, secondhand Corsa from a dealer. He paid cash but when he tried to sell it a year later it came back as having finance from Blackhorse on it still. Quick call to the dealership got it sorted out in a few hours.

Best bet is to give the place you bought it from a bell and ask them to find out what is going on.
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Theory test - 19/8/09, CBT - 11/10/09, MOD 1 - 16/8/10, MOD 2 - 27/10/10
Past rides Yamaha XT125X, Triumph TT600, Honda XR250
Current rides Suzuki GSXR 600, Honda MSX125

[Hahadumball]

[Polarbear]

[tafflington]

Thanks for everybody's insightful responses.

I spoke with the dealership who managed to fix it within 30 minutes.

There weren't actually any outstanding payments, it was the purpose the bike served... Like a show bike or something, I can't remember the exact term.

Honda keep an interest in the bike through finance to avoid it's sale until a certain number of days had passed. The bike itself is paid for, Honda just retain interest to keep the dealer from selling it.

When the relevant time had passed for the sale to be allowed, Honda Finance hadn't removed it automatically like they're supposed to.

I'm sure there's a much more accurate description for all of the above! But it's not my field of expertise

Either way, all fixed ... Thank you for your replies

[Rogerborg]

Good news, unfix bayonets.