Outstanding finance on HPI check.

HONESTKNOB · 21st November 2007, 20:38

Please help. I bought a car 4 years ago from a 'respectable' garage and paid cash for it. I have just advertised it for sale and someone came round to view it and left a deposit. They rang me this afternoon to say they want to cancel the sale as they've run an HPI check and there's outstanding finance on the car. I rang the garage straight away to get them to check it for me and they've just rung me back to confirm it's correct!!! Obviously it's outstanding from the person who sold the car to the garage in the first place. They didn't say how much is owing but someone is supposed to ring me back tomorrow. Where do I stand legally, can they just take my car away??? Please help as I'm panicking like mad now.
Thanks

gwc1000 · 21st November 2007, 22:23

Quote:

Originally Posted by HONESTKNOB

Please help. I bought a car 4 years ago from a 'respectable' garage and paid cash for it. I have just advertised it for sale and someone came round to view it and left a deposit. They rang me this afternoon to say they want to cancel the sale as they've run an HPI check and there's outstanding finance on the car. I rang the garage straight away to get them to check it for me and they've just rung me back to confirm it's correct!!! Obviously it's outstanding from the person who sold the car to the garage in the first place. They didn't say how much is owing but someone is supposed to ring me back tomorrow. Where do I stand legally, can they just take my car away??? Please help as I'm panicking like mad now.
Thanks

Don't panic. As a private individual you will not be liable to pay the hp or will the finance company repossess off you. Motor Traders however are liable for any outstanding finance on a car they purchase as it is assumed they will have an account with hpi or experian and have the facility to check the car's history. The garage you bought it off will be liable. They should have checked the car before they bought it. The finance may have been cleared some time ago but hpi haven't updated it on their register. It seems strange that the finance company have let the matter go for four years without trying to trace the car, unless the person who has the finance has been continuing to pay it after he sold the car to the dealer.
If I were you I would talk to the finance company and explain where and when you purchased the car and ask for title to the vehicle.

HONESTKNOB · 21st November 2007, 23:36

Thanks for putting my mind at rest. I'm going back to the garage in the morning so I'll let you know how I got on.
Thanks again

HONESTKNOB · 23rd November 2007, 09:31

Quick Update. I rang the garage yesterday and after much fobbing off it turns out the garage has now 'changed hands'. They did find out that the outstanding finance was with Black Horse though. I went to trading standards and they told me that as the garage had been sold then the finance company would be more likely to come after me personally if the original owner wasn't still making payments as obviously they wouldn't be able to claim off a garage that doesn't exist anymore. She suggested that I ring Black Horse and ask them for a letter to prove that I am the legal owner of the car.

gwc1000 · 23rd November 2007, 12:32

I think your best course of action at this stage is to delve more deeply into the change of ownership of this garage. When did it change, who sold to who etc. Do you still have the bill of sale when you bought the car. Are the directors of the company named on it? As I said before, it is strange for an hp agreement to be left dormant so long, considering most agreements are three years.

gwc1000 · 23rd November 2007, 12:35

The finance company may try to come after you, however if I were you I would stand my ground and say that you bought the car from a bona fide dealer and they are responsible. Don't allow them to imtimidate you and don't back down.

118:8 · 30th November 2007, 01:16

What type of finance? If it's Hire Purchase then your covered by a bit of law called the 'Hire Purchase Act 1964' and section 27 says that if you bought the car in good faith and with no knowledge of the HP then you are an 'innocent purchaser'. You have legal title to the car. The HP company must pursue the first purchaser not you!

With a fixed sum loan finance the seller passes title anyway so the car belongs to you and the person that first bought the car must pay the finance.

Oh Boy! · 22nd January 2008, 12:47

Has this problem been solved ?

As some of the posts are not entirly correct.

HONESTKNOB · 22nd January 2008, 13:14

Yes thanks,
All sorted aand the car has been sold.
Cheers

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