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Outstanding HP on car bought for parts?

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Hi.

Looking for a bit of help.

 

We have been stung by an unscrupulas seller.

 

My 17yr old son bought a car for spares or repair, it needed quite a lot of work on it, it was a non runner. But based on purchasing the parts and doing the work myself, it was still a reasonable deal. If a garage was to have carried out the work it was over £500.00 of labour and around £300.00 of parts.

 

So I bought the parts and did it myself. Now we have a letter from Santander saying they have an interest in the car (HPI outstanding) and have a claim on the car.

 

I want to know what rights I have, the car was only worth £450.00 as a non runner but now I have repaired it its worth £1000.00.

Do I have any rights, can I claim anything?

 

The car was purchased in good faith, receipt was issued and the V5 supplied.

Seller not interested in helping.

 

Before the cries of should have had a HPI check, know that now, the initial cost was low and only student savings to pay for it, we only did basic checks, but car + repair cost its now worth a lot more....

 

Any ideas (legal) of any steps I can take.

Edited by Andyorch
Paras

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I have amended your thread title for better response herbs.

 

Regards

 

Andy


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Not a lot you can do besides putting in a claim against the seller

 

You are not the true owner of the car

 

The only thing i can say is try and negotiate with Santander and explain everything, including the new parts which i take you will have receipts for.

 

They might let you buy the car back for £100 if the car was originally worth only a few hundred to begin with. They will balance that on what they would expect to receive at auction. Remind them of that, about 10% of the true value.

 

They can only say no

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Before you negotiate with Santander, establish the true position

 

They register an interest even if it's a personal loan used for car purchase

 

not necessarily hp

 

From hpi

 

Personal loan

The lender has no claim on or interest in the vehicle but has registered the existence of a personal loan as part of the Governments Responsible Lending drive. If you are concerned because the vehicle you are looking at has this type of finance, you should seek clarification from the lender and the seller of the vehicle.


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Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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If you bought the vehicle in good faith then you get good title to it, and Santander's issue is with the person that owes the money, not you.

 

 

Write to Santander, stating that you bought the vehicle in good faith from the person that owes them the outstanding finance, and explain that you would be grateful if they would kindly follow the law and remove their interest in it. Enclose a copy of the receipt too.

 

 

I reckon the seller was expecting you to just use the car for spares and it would ultimately 'disappear'

 

 

Anyway,from HPI website

You do have a defence though, and that’s section 27 of the Hire Purchase Act (1964). This says that if you buy a car in good faith and the vendor doesn’t tell you of any outstanding finance agreements, you still have good title to the car. But let’s face it, considering the hassle you could have to endure if you’re unlucky, forking out £19.99 for a vehicle check must seem like a no-brainer at this point?

 

 

 

 

link

 

 

https://blog.hpicheck.com/2015/06/18/buying-a-car-with-outstanding-finance-on-it/

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Afraid not

 

Santander have a registered interest as the legal owners until the finance agreement has been settled. The vehicle was sold fraudulently

 

It needs to be confirmed if the finance agreement on the vehicle is either Hire Purchase or a Fixed Sum Loan agreement

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Sorry Capquest you're wrong.

 

 

It's a fact that if you buy a vehicle in good faith that has outstanding HP on it then you will get good title to the vehicle and the argument is between the HP co and the person that took out the HP.

 

 

By all means check it out online...I sold 5000 cars in my career and speak from personal experience.

 

 

I know it seems odd that if you do not have 'title' to the car (this seller did not) then you would suppose that title cannot pass from someone who does not have titleto someone who does.

 

 

But with HP on cars it does.

 

 

There are exceptions such as a lease or PCP (personal lease)or log book loan, but this does apply to simple HP.

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"It's a fact that if you buy a vehicle in good faith that has outstanding HP on it then you will get good title to the vehicle and the argument is between the HP co and the person that took out the HP".

Can you please give a source to that statement

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Google it. It's all over the net. Try 'Hire purchase vehicle title' as a search. 1000's of results.

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indeed, from your link

 

 

If you want to keep the car

 

If you are a private buyer and you bought the car in good faith, you may be able to show that you have a legal right to own the car. This is called having good title.

This may apply if you didn’t know the car was subject to a hire purchase or a conditional sale agreement when you bought it. If the finance company contacts you, write to them straight away and explain that you bought the car in good faith. Your letter should include:

 

  • the name and address of the person you bought the car from,
  • the date you bought it
  • how much you paid
  • a copy of the receipt or other proof of purchase.

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With all due respect i asked you to substantiate your post with an objective source for confirmation such as the CCA 1974

 

The key in the link above is "MAY"

 

I will now withdraw from this debate

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Right,OP

 

 

The finance company cannot take the vehicle away from you against your will.

 

 

Write to them, explaining all, with a copy of the receipt, asking that they comply with the law and remove their interest in the vehicle and pursue the seller for any outstanding money.

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Its not a debate CWK...its about offering advice to the poster that asked the question.There is plenty of opinion above...some at odds with others but links and sources have been provided.

 

Its now for the poster to take the information and move forward in resolving their problem with the advice offered.

 

There is no need to withdraw.....just accept and move on.

 

Regards

 

Andy


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Also to anyone else thinking that an HPI check is somehow guaranteed...WRONG.

 

 

You are only covered if the information they hold is incorrect at the time they give it to you.

 

 

So, if you HPI it today, buy it today and then 6 months later XYZ HP co. say they have an interest in it, you are NOT covered if XYZ only let HPI know of their interest AFTER you did your HPI check..ie the information HPI gave you on the day was correct at the time.

 

 

There is no compulsion for an HP company to inform HPI of any interest they might have, although it would generally be in their interest to do so.

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Also to anyone else thinking that an HPI check is somehow guaranteed...WRONG.

 

 

You are only covered if the information they hold is incorrect at the time they give it to you.

 

 

So, if you HPI it today, buy it today and then 6 months later XYZ HP co. say they have an interest in it, you are NOT covered if XYZ only let HPI know of their interest AFTER you did your HPI check..ie the information HPI gave you on the day was correct at the time.

 

 

There is no compulsion for an HP company to inform HPI of any interest they might have, although it would generally be in their interest to do so.

 

But having done an HPI check (that came back clear) can only reinforce the buyer's position that they made the purchase with utmost good faith?

 

After all, it isn't the buyer's fault if XYZ don't register their interest.

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But having done an HPI check (that came back clear) can only reinforce the buyer's position that they made the purchase with utmost good faith?

 

After all, it isn't the buyer's fault if XYZ don't register their interest.

 

 

absolutely, it would make the hp company case very weak.

 

 

I took a corsa in px for an Omega about 15 years ago, checked the Corsa, all clear, sold it two weeks later.

 

 

The buyer then had a letter from British Forces Finance (obviously they provide finance for the armed forces) saying they had an interest in it.

 

 

The buyer on my advice wrote them a letter saying they had bought the car from me.

 

 

BFF gave them title to the car and tried to pursue me for the money.

 

 

I wrote back explain I had used all possible means to establish that the corsa was clear and that it was their fault for failing to inform HPI of their interest, and goodbye.

 

 

They threatened court for a few months then gave up.

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I can't see the question asked "was it a private seller or a business" ??

 

Very important that one.

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Not really Conniff, he gets title either way. The HP company will pursue the dealer if its trade.

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I understand that ojb but if it was a dealer, he must check it out and be sure he has title to it before offering it for sale so can put that in a letter to the finance company saying 'not my problem'.

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Yes indeed, although the OP is not affected.

 

 

I very much doubt this was a trade sale TBQH

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UPDATE...

It's good news. I wrote to Santander, supplied all receipts, for the car and for repairs, the original advert, mentioned that the car was bought in good faith and requested "Good Title" and they have removed their interest in the car.

 

So take note, it is worth getting a check done, though in this case the initial value of the car was low (£450) by the time parts had been purchased (£200) and time, okay in my case because i did it, but if it had been a garage price hundreds could have been spent, all of which could have been lost.

For those repairing a car think about more than just the cost of the car..

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Yes, that's exactly how it happens. Well done.

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Only just seen this. Well done or getting it sorted.

 

http://www.legislation.gov.uk/ukpga/1964/53/section/27

 

CWN. The legislation you want is not in the CCA 1974 it is in the HP Act 1964 and is the only section which was not passed over to the cca and is still active.

 

 

27

 

Protection of purchasers of motor vehicles.

.

 

(1)

 

This section applies where a motor vehicle has been bailed or (in Scotland) hired under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.

.

 

(2)

 

Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement”) that disposition shall have effect as if the creditor’s title to the vehicle has been vested in the debtor immediately before that disposition.

.

 

(3)

 

Where the person to whom the disposition referred to in subsection (1) above is made (the “original purchaser”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition (the “first private purchaser”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immediately before he disposed of it to the original purchaser.

 

What it means is that, if the car is sold to someone who buys it in good faith, the title to the vehicle will be regarded in law to have passed to the seller just before the sale. Making the sale legal and also the passing of the title.

 

It goes onto say that this does not release the seller of the liability to pay sum remaining under the loan(HP) agreement.


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