Unknowingly Bought a Car with Outstanding Finance

[LoveVWRED]

Hello,

 

First time posting here - really need your guys help!

 

About 2 months ago I saw an ad on Gumtree pertaining to a sale of a car.

 

After questioning the individual selling the car - I was told there was nothing wrong with the car. He gave me the new keeper's form and assured me he just wanted to sell the car for the cash. My brother at the time was with me for it's sale.

 

The car has damages that need repairing as it has a few dents (one pretty severe) and a couple of scratches to take care of.

 

I purchased the car via a bank transfer directly to that individual's account.

 

Three days later I attempt to phone the individual and it seems his phone has been disconnected...

 

I had my suspicions so I did a HPI check and found out the car has outstanding finance. I called up the finance company, and they have stated they are financially interested in the car.

 

Since the two months I found out: I have registered myself as the new keeper, called back to still find financially interested (I had hoped the previous owner would have cleared this by now), gone to a free law advice service to draft a letter to be sent to the finance company and done a few repairs on the car (holding off on the major one for now).

 

Today I received a 'slip' from Armstrong Nationwide Ltd (which I googled to find out to be a recovery service).

 

I called them up and they asked to meet IN PERSON to fill out a questionnaire.

 

My question is this:

What do I do?

Edited October 29, 2015 by LoveVWRED

[oddjobbob]

As long as you have receipt for your purchase at or about market value at the time and bought it in good faith then you will get title to the car.

 

The only time this does not apply is if the car was on a lease or PCP, with ordinary HP you get title.

 

I posted a link on a similar thread a couple of months ago and there was a successful outcome

[oddjobbob]

here it is

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?451667-Outstanding-HP-on-car-bought-for-parts&p=4786854#post4786854

[LoveVWRED]

Hi there oddjobbob,

 

Thank you for your reply.

 

I purchased the car for about 60% of it's usual value. The repairs have so far taken a few hundred pounds.

 

I still need to repair the huge damages done to the side of the car which would cost around 500.

 

I did a check on RAC and the Agreement Type listed under the Outstanding Finance section is a Conditional Sale.

 

Would that entitle me to the same act?

 

Thanks!

[oddjobbob]

At 60% of value it can be argued that you should have been aware that there was some kind of back story to the car.

 

AFAIK conditional sale is fine, the sticking point is as above.

 

Do you have a receipt?

 

Please read ALL the other thread, there is lots of info there on what to do and what to write.

[LoveVWRED]

The reason I found the car to be cheap was because of all the repairs that were required on it. I didn't think of the back story - which is completely my fault ;(

 

I have a bank transfer to the owner of the vehicle and a voice recording of us discussing the car.

 

I tried emailing the previous owner a receipt to fill out, but he has ignored my requests.

 

What should I do about the recovery agency?

[renegadeimp]

Only way to get the recovery company out of the picture is to come to an agreement with the finance company. basically, you just bought someones debt.

[LoveVWRED]

Is the recovery company trying to meet me in person in an attempt to get me to bring my car with me?

[oddjobbob]

No. If you bought the car and can show this by bank transfer + recording etc then this means you will get good title to the car. You have NOT bought someone else's debt, just read all of the other thread andstick to your guns you will get unencumbered title, the finance co are bound by law to pursue the person that took out the finance, not you.

[oddjobbob]

Only way to get the recovery company out of the picture is to come to an agreement with the finance company. basically, you just bought someones debt.

 

Sorry renegade, it doesn't work like that. I know it's counter intuitive - after all, if the selling party did not have title how can they possibly pass title to a 3rd party-but they can. See other thread http://www.consumeractiongroup.co.uk/forum/showthread.php?451667-Outstanding-HP-on-car-bought-for-parts&p=4786854#post4786854

[theoldrouge]

Conditional sale fine, HP Act 1964 s27

 

[F127 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.

(4)Where, in a case within subsection (3) above—

(a)the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment or hiring under a hire-purchase agreement, and

(b)the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,the disposition referred to in paragraph (b) above (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall as well as the disposition referred to in paragraph (a) above, have effect as mentioned in sub-section (3) above.

(5)The preceding provisions of this section apply—

(a)notwithstanding anything in [F2section 21 of the M1Sale of Goods Act 1979] (sale of goods by a person not the owner), but

(b)without prejudice to the provisions of the Factors Acts (as defined by [F3section 61(1) of the said Act of 1979] or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.

(6)Nothing in this section shall exonerate the debtor from any liability (whether criminal or civil) to which he would be subject apart from this section; and, in a case where the debtor disposes of the motor vehicle to a trade or finance purchaser, nothing in this section shall exonerate—

(a)that trade or finance purchaser, or

(b)any other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,from any liability (whether criminal of civil) to which he would be subject apart from this section.]

Annotations: Help about Annotation

Amendments (Textual)

F1

Part III substituted by Consumer Credit Act 1974 (c. 39, SIF 60), s. 192, Sch. 4 Pt. I para. 22

F2

Words substituted by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 2 para. 4(a)

F3

Words substituted by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 2 para. 4(b)

Marginal Citations

M1

1979 c. 54(109:1).

[Conniff]

Title to Motor Vehicles on Hire-Purchase or Conditional Sale

 

Section 27 HP act 1964

[LoveVWRED]

Thanks everyone for your replies!

 

So here's what's happened so far.

 

I will no longer be in contact with the Armstrong recovery people.

 

I have decided to get in touch straight with the finance company instead.

 

They've sent me a questionnaire via email to complete and return within one week - which is a bit ridiculous cause it's going to take me some time to gather up all the receipts, proofs and etc.

 

I've visited webuyanycar and they've quoted me the same figure for the car that I paid.

 

I'll be visiting an authorised Volkswagen service center and getting it serviced and then get quoted for all the repairs needed to it.

 

Wish me luck! Any advice would be welcome!