Help Needed! I've bought a car which has outstanding finance!!!

[Lewiso1989]

I have recently purchased a bmw 3 series for £5500 in good faith. only to get a letter after a month stating that the car is owned by first response finance company! i have recently sent them back the questionairre believing i was helping them with their enquiries in order to track the person who owes them money. However, they are now saying to me they want me to give them the car basically. i hope i have some rights as i have the log book at least to prove i am an innocent buyer but they say this isnt enough. i did a hpi which later turns out to be a car check and doesnt say if the car is on hire purchase agreement. but i thought this would state that. what should i do now??

[Lewiso1989]

I have recently bought a car which later turned out to be still on finance. i have the log book and bought it on autotrader. i am now being pursued by the finance company for the vehicle who basically dont believe i have bought the car in good faith. they havent issued any court orders or repossesion orders yet but im sure they are going to start. what solicitor would i need to contact?

[renegadeimp]

What did the HPI check state? If it said no finance, ask this finance company to prove it.

[Lewiso1989]

What did the HPI check state? If it said no finance, ask this finance company to prove it.

 

It was 83600 car check. this came up when i typed hpi text check in google. turns out this only says if stolen or written off.

[renegadeimp]

Ok. Next question. Did you buy it from a dealer or private?

[Lewiso1989]

Ok. Next question. Did you buy it from a dealer or private?

 

Private.

[renegadeimp]

Ok. You need to write to the person who sold it you and tell them concisely what has happened and you want a full refund of your money. Failure to refund your money in 7-14 days ( your choice) means you will be taking legal action in small claims to recover your money.

 

I assume you have the sellers details and picked the car up at their home address and not a car park somewhere?

[Lewiso1989]

Ok. You need to write to the person who sold it you and tell them concisely what has happened and you want a full refund of your money. Failure to refund your money in 7-14 days ( your choice) means you will be taking legal action in small claims to recover your money.

 

I have the sellers address but only from the log book. i was meant to reach him at his house but i couldnt make it. so met him near his work!

[Jam_Buttie]

Why do people skimp on hpi checks

 

Sounds like you will have no car and no money soon.

[renegadeimp]

Ok. You need to write to the person who sold it you and tell them concisely what has happened and you want a full refund of your money. Failure to refund your money in 7-14 days ( your choice) means you will be taking legal action in small claims to recover your money.

 

I have the sellers address but only from the log book. i was meant to reach him at his house but i couldnt make it. so met him near his work!

 

That is very suspicious. Jam could be right here. You need to make sure the car was actually his. Send the letter as advised first thing tomorrow and see what comes back.

[Jam_Buttie]

Having the reg doc in your name doesn't mean you are the legal owner (see the notes)

 

It's a sad story, but will only really have one outcome. Sadly.

[Riz0]

Someone who deals with commercial/civil litigation/debt recovery type work.

 

As far as I am aware, even as a bona fide purchaser you are not protected when it comes to vehicle finance. I may be completely wrong though.

 

Do you have any evidence of the sale? Proof of payment? receipt/invocie?

[ims21]

Two threads on the same issue merged

[steampowered]

At least ask them for a copy of the document they claim supports their claim.

[garrycavell]

i was always told that when a private purchaser buyes a vehicle and it turns out to be on finance that the finance company cant reposes the car only when the vehicle is sold to a motor trader the trader is liable,not 100% sure but i do know a few people that this has happened to ,take more advice,

[Jam_Buttie]

The car is owned the by the finance company until it has been paid for. So they can repo it from who ever they want.

 

A dealer/trader would be silly/thick to take a car in with outstanding finance unless it is getting settled.

[garrycavell]

a friend of mine bought a car not knowing it was on finance and went to court and won the case,and i didnt meen if the trader bought it knowing it was on finance,but some cars do slip through the net ie dont get registered with hpi straight away then the trader buys it and is liable

[steampowered]

It depends on the type of finance.

 

If it is hire-purchase, a private buyer who buys the car in good faith will get good title to the car regardless of the finance, and regardless of whether the HP was registered with HPI. Refer to http://www.legislation.gov.uk/ukpga/1964/53, section 27.

 

If the car is leased, the analysis is a bit different. If the car was bought from a trader the op would probably be protected (refer to s1 Factors Act 1889), if bought from a private seller then not.

 

This is why it is important to ask the finance company for a copy of the document on which they are basing their claim.

[garrycavell]

i think your wrong there

The car is owned the by the finance company until it has been paid for. So they can repo it from who ever they want.

 

A dealer/trader would be silly/thick to take a car in with outstanding finance unless it is getting settled.

[Billy's mate]

Handing over that kind of money without a full HPI check is asking for trouble, especially as you didn't go to the seller 's house. The address on the registration document may not be his, and he's got clean away with your money. The car belongs to the finance company and they will want it back. This happened to my brother in law,and he had to pay to get the car back from the finance company.

[Ethel Street]

Lewiso1989, is there any update on this?

 

Asuming what others have said is right and you end with no car and without getting money back from seller it is a criminal fraud on you by the seller and you should go to the police. Whether that ultimately gets you any of your money back only time will tell, but if the seller is prosecuted you'll at least have the satisfaction of knowing the seller hasn't got clean away with it.