I paid cash for it as did the previous owner. Some outstanding finance from a few owners ago which has only just come to light doesn't tantamount to me "selling a stolen motor" though does it?

Because that's when the dealer is saying was when the outstanding finance deal was taken out. I bought the car off an acquaintance after doing an HPI and it said that although there was outstanding finance on the car this was due to expire in July this year so I went ahead. There were no alarm bells, it had been bought by my friend from a garage before me after all. The dealer took the car off me a week ago, we signed forms, I sent the logbook with their signature on it off to the DVLA. End of transaction. Then they discover they can't shift it at auction due to a problem with the original finance deal. I'm saying that it's not my car now, they say it's my responsibilty. But they've sold me a new car and signed for ownership of my old one so who is in the right?

Hi all I traded in my used car with a major dealership a week ago. They're now saying, as there is outstanding finance on the one I gave to them in the deal, that I am liable for it and it's my problem. The auction house it got sent to by them won't auction it. As the car is now in the dealership's hands are they not liable for it? I paid cash for it as did the previous owner - the problem goes back to an owner from four years ago. Surely they should have HPI'd it before agreeing to the deal? They're getting quite abrasive on the phone insisting I take the car back and pay them the difference. Help!