Are there any steps to take to protect against buying a car with a log book loan on it?

[UpOverTheEyeballs]

I am looking to purchase a car in about a month's time which will be for well under £1,000. It will be cash, not financed.

 

From what I've read on CAG and elsewhere there isn't really anything that a prospective buyer can do to guarantee that, if I purchase via from a private vendor, that the seller hasn't got an outstanding log book loan on the car they are selling to me.

 

I've read on here about some of the steps to take, after the event, but I'm trying to build up a picture of the steps to take before the event.

 

It seems that a combination of an HPI report, plus purchasing via a motor trader declaring themselves as such would be the best way to go, is that correct?

 

If there are any links or tips on here that I've missed, can anyone point me in the correct direction.

 

Or even if there's anyone out there that would be willing to volunteer any thoughts such as, " The next time I buy a car I'll do it THIS way ..." I would really appreciate it.

 

Many tanks

 

UOTE

Edited January 7, 2012 by UpOverTheEyeballs

[UpOverTheEyeballs]

Not so much a bump, more of a prompt. There's been over 80 viewings of my post and I just wondered whether anybody would care to offer up any suggestions, even if they are of the 'there's nothing you can do to protect yourself' type.

 

Just like to know I'm the only one on here, if you know what I mean.

 

Thanks and regards

 

UOTE

[l33tgama]

Hi There,

 

in answer to your question, yes there is absolutely many steps you can take to cover yourself. (Please see below for a few handy tips)

 

Before you even put a deposit down or even go to look at the car head over to hpicheck.com ( see link below)

hpicheck.com/furniture/guarantee.html (had to remove the www because it would not let me insert links) - this covers you up to the sum of £30,000 so if you purchase the vehicle and log book loans turn up - you can tell them to get stuffed as you are covered.

 

All finance on any vehicle by law must be registered on the HPI Register, and or Registered with the High Court.

 

When purchasing the vehicle try to pay via the bank / electronically instead of cash as this is recorded and will stand better in your favour should and problem's occur, also always always always get a receipt from the buyer!! to prove that you did indeed purchase it from him and make sure he signs it!

 

For one that i use and highly recommend please download and print the following PDF! - its worth its weight in gold!

 

purchase_receipt.pdf

 

 

Also check to make sure the VIN / Chassis / Frame No. ( Vehicle identification number matches the log book)

 

See the following link out below for handy tips and more advice from the AA.

 

theaa.com/motoring_advice/car-buyers-guide/cbg_usedtips.html (had to remove the www because it would not let me insert links)

 

Trust me i know i learnt the hard way.... i didn't do the check and ended up buying the vehicle without doing a HPI check, for it to only turn out to have HPI registered with Log Book Loans and they then repossessed the vehicle follow all of the above and you will be worry free!

 

Good Luck and enjoy your new motor!

 

Carl.

[UpOverTheEyeballs]

Carl, thanks for the reply and I'm sorry to hear that it's based on what you should have done rather than did do.

 

It's terrible that in 2012 a company can use laws designed to be used with Victorian ships in this way.

 

I've downloaded a copy of the invoice; thanks for that.

 

Rgds

 

UOTE

[jacketpotato]

The best way is a HPI check. But there is no way to be 100% sure.

 

I think a lot of people don't understand the law on this. If you buy a vehicle as a private purchaser without knowing about a HP and that verhicle is subject to a HP, the HP is unenforceable - see http://www.legislation.gov.uk/ukpga/1964/53/section/27. Bills of sale have slightly different rules.

[Guest]

HI

Just to clarify.

The section of the HP act ensures that an unsuspecting purchaser of a vehicle that is under an HP contract (third party) has good title transferred to them at the point of sale; in other words the HP Company cannot reclaim it.

This does not apply to a Bill of sale or log book loan where the title to the goods remains with the creditor until the loan is repaid. So the creditor can take the vehicle, without a court order.

The technicalities are interesting. The HP act 1965 was repealed by the consumer credit act 1974 all except this, which is contained within part three of the old act.

In a conventional HP agreement title remains with the creditor until the last payment. What the act does is transfer ownership to the seller (hirer) just before the sale, thus legitimising the sale as far as the new buyer is concerned.

IF the car was stolen from the hirer then sold this would not apply because the transfer of title would only be effective to the original hirer.

Also the sale of the vehicle does not make the agreement unenforceable, the act states that anything within it does not alter the creditors right to pursue liabilities either through the civil or criminal courts( criminal is unlikely) . He can still issue a default notice and enforce on default of payment by the hirer.

Peter