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Outstanding finance on privately bought car

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hi, a friend of ours recently bought a car (within last month) from a private buyer paying cash it was a 54 plate for £1000. she registered as keeper of the vehicle and all was well until last week she recieved a letter from a finance company stating there was outstanding finance on the vehicle which they legally own and they will be seeking repossession of thr vehicle if debt is not cleared.

the car has 6 previous owners (alot for 5 years), and we are trying to find out the best thing to do here. any advice would be great. can they come and take the car or could she be landed with the debt?


our first post so hopefully it's in the right place

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my advice would be to talk to the finance co as you are an inocent party in all this


and yes


they can come and take the car so hide it until its sorted


it all depends how much so far has been paid to the finance co

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What make and model of car is this for £1000? I ask because even a 54 plate Corsa would be around £2500 retail, so £1000 seems very low for a 54 plate car.


First things first. Your friend needs to contact the seller with this information - they MAY be completely innocent or unaware of the alleged problem. Depending on how that goes, you then need to either follow it up with the finance company or bring in the police.


The seller (if the finance co is correct) was not the owner and thus not legally allowed to sell the car in the first place. That becomes deception or fraud if they knew, or handling stolen goods if they didn't.


It is highly unlikely the police would take any action against your friend as they seem an innocent victoim of a deception to me.


Start with the seller first though. The very first thing the police would ask is 'have you spoken with the seller about this?'


Good luck

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Everything depends on where you live.


If you are in Scotland, then you have good title to the car and the finance company cannot seize it; they must pursue the person who took out the loan.


If you are in England or Wales, then the law is different and you cannot obtain good title from a private sale. The finance company - proving the finance is secured on the car - own the car and are entitled to take their property. Your argument to get your money is then with the person who sold the car.


The finance company cannot pursue you for the outstanding finance; they may only take possession of their car. You need to talk to them. They may let you keep the car if you pay off the outstanding finance; you can still sue the seller for your £ 1000.


Being the RK is irrelevant; it only refers to the keeper and not the owner. An HPI check would have revealed outstanding finance.

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Drat! Pat beat me to it!


If you are baed in E&W, things are more complex but the issue that they are coming to you for the 'outstanding finance' is fanciful. That would be unrealistic of them, especially as you were not the defaulter. Don;t let them bully you, and keep all negotiations in writing.


First thing is to find out what the TRADE price is for the car you have, along with itsprevious 5 keepers. This will be the highest amount the finance house can reasonably extract from you (not ideal, I know) but use this as a starting point. I would agree that a car with so many RK's and 5 years old is right on the end of the scale when it comes to paying £25 for an HPI check, and on balance, I probably wouldn't have either.

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