Car with outstanding finance

[Deleted member 6259]

Hi all i need some advice.

I bought a car back in June 2007 and then sold it on in November 2008 to a friend that bought it to sell on and make some money on it.Anyways tonight i got a phone call off my mate saying the lad he sold it to had tried to part ex the car at a garage and has been told he couldn't as it had outstanding finance on it.But when i bought it i had all the receipts from when the previous owner bought it from Henson motor group and he payed cash for the car and didn't take it out on any finance.And i have phoned him tonight to ask and he defiantly didn't.My question is can a place like Henson's motor company sell a car with outstanding finance on ? And if the car has finance on it what can be done about this. It all seems strange to me as the car has been in 2 or 3 different names since i bought it and its just coming to light now do you not get informed of this when applying for the log book if it has ? and what do you guys think i should do about it and who is at fault here ? . Oh and wheni bought it i did one of them car text checks on my mobile thinking that was a proper hpi report but after reading tonight it doesnt include the finance bit .

Cheers guys.

 

[Messa]

Hi all i need some advice.

I bought a car back in June 2007 and then sold it on in November 2008 to a friend that bought it to sell on and make some money on it.Anyways tonight i got a phone call off my mate saying the lad he sold it to had tried to part ex the car at a garage and has been told he couldn't as it had outstanding finance on it.But when i bought it i had all the receipts from when the previous owner bought it from Henson motor group and he payed cash for the car and didn't take it out on any finance.And i have phoned him tonight to ask and he defiantly didn't.My question is can a place like Henson's motor company sell a car with outstanding finance on ? And if the car has finance on it what can be done about this. It all seems strange to me as the car has been in 2 or 3 different names since i bought it and its just coming to light now do you not get informed of this when applying for the log book if it has ? and what do you guys think i should do about it and who is at fault here ? . Oh and wheni bought it i did one of them car text checks on my mobile thinking that was a proper hpi report but after reading tonight it doesnt include the finance bit .

Cheers guys.

Its possible that the car finance has been cleared but not removed from the register.

It is also possible to buy a car from a garage that has outstanding finance on it. Officially the title still remains with the original financer but it is unusual for them to take claim to the car if you were unaware of any outstanding title.

I would take it up with your HPI company, as I am pretty sure it should show on any report though.

Messa

Hensons could argue that they did not know about any finance, and it would be hard to prove that they did. They may be foolish to claim they don't HPI their own cars but they are not obliged to.

 

[Deleted member 6259]

Thanks mate I'm going to do a full hpi report on the car soon and see if its on for myself as ive been told that if it is the details of the company that loaned the money will be on it and ill find out the crack off them.But im thinking your first comment may be right if it is and just not taking off the register.

 

[ms2005]

Outstanding finance on a vehicle passes to the new owner unless there is an agreement otherwise, which is why you should always get a HPI when buying second hand car.

It may be as above, that its been cleared but not registered. There should be a paper trail of who the finance is due to and if no payments have been made for a while they would have been in contact with current owner.

In any event, it's not your problem.

 

[Deleted member 6259]

Well guys i done a full HPI check and my fears have come real the car does have outstanding debt on it.The hpi report had the finance companies details on so i rang them to find out if it was a mistake and it wasn't it looks like the guy i bought it off has stiffed me.
He is still saying that he bought the car out right and is denying that he got it on credit so i have just informed the police about it and there coming to take a statement tomorrow afternoon.
I have also tried ringing the garage he bought it from to find out for sure but have to ring back on Tuesday when the admin staff are in.
The debt doesn't pass on to the new owner either guys and stays with the person that took it out.
Either way it will get sorted as the guy owes the local Indian tandoori so i know where he is.
I need to get his address tho if anyone can help with that or at least find out what his proper name is as i think he is using two different last names.

Thanks guys and keep the suggestions coming if you have any.

 

[smirnoff_rules]

Well guys i done a full HPI check and my fears have come real the car does have outstanding debt on it.The hpi report had the finance companies details on so i rang them to find out if it was a mistake and it wasn't it looks like the guy i bought it off has stiffed me.
He is still saying that he bought the car out right and is denying that he got it on credit so i have just informed the police about it and there coming to take a statement tomorrow afternoon.
I have also tried ringing the garage he bought it from to find out for sure but have to ring back on Tuesday when the admin staff are in.
The debt doesn't pass on to the new owner either guys and stays with the person that took it out.
Either way it will get sorted as the guy owes the local Indian tandoori so i know where he is.
I need to get his address tho if anyone can help with that or at least find out what his proper name is as i think he is using two different last names.

Thanks guys and keep the suggestions coming if you have any.

u lost me there ?

o u did these after u got the car ... the car is there's ( finance companies l mean)till the bill is paid , he has to pay but he can drag it out m8

 

[Deleted member 6259]

I lost myself there for a minute when a read it back lol.

When i bought the car i never done a proper hpi check as i sort of knew the bloke and didn't think i needed it. So last night i did a full hpi check on it and its come back with having finance still left on it. Your right about the car is theres as they explained that to me and if the payments are not kept up they will take it back.I know its got nothing to do with me ms2005 mate as i didnt know anything about it but since i sold my mate the car i feel atleast a little responsable

 

[Dutcho]

I had a similar thing a few years back with a bike, turned out the guy owed money on it, told him I would goto his house and 'work' something out if he didnt clear the debt. Got a letter a months later saying the company no longer had any intrest in the bike as the outstanding balance had been paided.

Finger crossed for you mate but it is the finace companies car, you really need a statement from who ever sold you the car saying that they are selling it with no outstanding monies owed on it.

 

[janobi]

u lost me there ?

o u did these after u got the car ... the car is there's ( finance companies l mean)till the bill is paid , he has to pay but he can drag it out m8

You need to get a miafta check I think its called. It will show all HPI on the car, also as Smirnoff said, the finance company own the car until the finance is paid. Also if you have an accident and the car is written off, the finance compaines gets the cash first and not you.

You should of had the check done before purchasing the car mate, not a lot of help now I realise, but unless the company get there payments then they will just reclaim the car mate.

 

[ms2005]

I'm pretty sure that as a "stakeholder" or a person with an "interest" in the car, they are also entitled to to come after the current owner for outstanding finance

It's caveat emptor I'm afraid, the law won't protect you from bad deals.

 

[digirig]

The way I see it, it was never yours to sell so you have to give your mate his money back.
If the guy you bought it off has the loan then you will have to get your money back from him, or he has to pay the loan off.
If he is telling the truth and paid cash, then the garage sold it with finance on and they will be liable to all.

 

[Deleted member 6259]

Thanks guys for the comments the police are now involved so hopefully get something sorted out if it comes to it ill give the lad the money back and fight for the money back of the bloke i got it from. I do know one thing he is not getting away with it he had clearly knew about it and in my book its not something that you should do never on your door step as well.

 

[ragtime27]

Thanks guys for the comments the police are now involved so hopefully get something sorted out if it comes to it ill give the lad the money back and fight for the money back of the bloke i got it from. I do know one thing he is not getting away with it he had clearly knew about it and in my book its not something that you should do never on your door step as well.

I'm in same position as you and I'm about to approach the police,were they helpful?
my wife's car was repossessed by the finance without our approval,the lady we bought it from denies it's on finance and refuse the refund.
on my first vehicle check prior to purchasing the car it didn't show the finance side(not full hpi)

on second one RAC(full hpi) it shows that it's finance,it was too late by then.

what is my chances to recover the car or the money,I have a receipt when I purchased the car.

many thanks

 

[wilson1980]

I'm in same position as you and I'm about to approach the police,were they helpful?
my wife's car was repossessed by the finance without our approval,the lady we bought it from denies it's on finance and refuse the refund.
on my first vehicle check prior to purchasing the car it didn't show the finance side(not full hpi)

on second one RAC(full hpi) it shows that it's finance,it was too late by then.

what is my chances to recover the car or the money,I have a receipt when I purchased the car.

many thanks

bein honest i dont think any..unless u go to small claims court i would have thought bud..

 

[witchy]

Fooking hell, what a mess.

So if I'm reading this correctly........even though I buy a used car from a main dealer, there may be existing finance already on the car which the dealer does not need to inform me about, so I can buy the car, make my payments to MY finance company for purchase of the car BUT another finance company can step in at any time and claim the car (if it had outstanding finance on it).

 

[pinkhelmets]

No you not reading it correctly lol.
1) You cant buy a car from a dealer if it still has outstanding finance.
2) You cant get finance on a car if it still has outstanding finance.

If you buy a car privately that has finance outstanding, then yes the finance company have rights to take it back at any time.

 

[wilson1980]

No you not reading it correctly lol.
1) You cant buy a car from a dealer if it still has outstanding finance.
2) You cant get finance on a car if it still has outstanding finance.

If you buy a car privately that has finance outstanding, then yes the finance company have rights to take it back at any time.

u can bud..i was able to.i got a car from leeds car company in crossgates with finance on it december past there after doin a check and i paid 20 quid for it and it didnt say it had financeagain u gotta watch on some off these checks cause not all them check finance but id paid money towards the car for them to keep for me cause i was comin all the way from dundee to there and it was a girl i knew who worked in norwich insurance who said it did have finance so i phoned the garage and he said aww yeah it has but the people we bought it off has put a cheque in and there just waitin for it to clear..i phoned the company whos car it was and they said we have a cheque in but it wont clear untill the 19th which was a couple weeks..so if that goes threw then we will take it off hpi so i was in doubt weather to buy it..i ended up buyin it and lucky for me everything went threw ok but that garage were willin to sell it with finance on it..i know your not meant to but some garages dont give a toss


meant to add i paid cash in full and the car was 3900 so im not sure about the second one u said about

 

[MikeS]

car dealers are not allowed to sell cars with existing HP without telling the new owner

they are however buggered if they buy a car in p/x with existing credit and the previous owner did not mention it

with car dealers u have the law on your side where as private is a different matter

but it is fraud selling a car that u do not own and any car with HP is the finance company's property until it is paid off but i am under the impression that once u are the registered keeper of the car u are then responsible for the HP as the previous owner could state that he sold it to the new owner and told him about the outstanding HP, u have to be credit checked before buying a car with existing finance, i am sure that is the standard procedure if the previous owner does not want to pay in full outstanding HP

I HPI check any car i buy even it is worth 500 quid cos u do not know if any HP is existing on it from when it was new and u have a hard job telling the finance company u were un aware of outstanding finance as they will be looking for blood

 

[MikeS]

what is my chances to recover the car or the money,I have a receipt when I purchased the car.

small claims court and u have to prove that u bought the car without knowing it had outstanding finance owed

previous owner will just say i told new owner outstanding finance was owed on car and they were willing to take over the payments, i gave them the details and notified the finance company of new owner

regardless of how much was owed and value of car it wont make a single bit of difference in the eyes of a small claims court

6 month waiting list to go to small claims court and by then u either have the car repossessed or u pay off the outstanding finance

i do 3 or 4 HPI checks before buying a car, for the sake of 20 - 30 quid u dont want to be stinged

 

[jasperconran]

small claims court will only deal with matter less then a grand. Or it was the last time i went.
You can not sell a car with outstanding finance owed, Coz the seller dont own the car,
finance company do,
My mate sold a car with finance owed, even tho payments was made, the car was still taken back by the finance company.