Please Help Me - Bought Car Without Full Logbook

Murtle

cwcw wrote: »

And what about HPI? There was outstanding finance on it. The garage assured me this was settled as part of the trade in and has given me a copy of the settlement quote and a photocopied payment stub. Can a dealer legally sell on a car if there is outstanding finance on it?

Does this mean there is, there isn't or you're not sure.

To check you can do the AA car check to see if there is.

cwcw

Murtle wrote: »

Does this mean there is, there isn't or you're not sure.

To check you can do the AA car check to see if there is.

I did one with RAC, stupidly after I bought it, and that was where the panic set in. It currently shows as having finance on. However, the checks take weeks to be updated. I plan on asking the finance company directly. The question is, if he is lying, where do I stand? I have a receipt, paid by traceable means, but have not signed the logbook yet as it's away in the post. What course of action should I take? I have read about the Consumer Credit Act and buying "in good faith" and I believe that's what I have done.

Scuttsy

Sounds to me like you will be fine. The logbook may take a while to come to you but even if it doesn't you should be able to replace it (a be it at a charge) as you have a copy of the new keeper supplement.

The HPI service does take a few weeks to update when the finance is cleared. A already said a phonecall to the finance company will clarify this. However I believe (although stand to be corrected) that even if it is not cleared as it was bought from a delaer you will have legal protection if they have knowlingly sold you a vehicle with finance outstanding.

As you say the company has been established 20 years it does not sound like they are dodgy though and I am confident everything is perfectly legit.

The_Pedant

In the case of outstanding finance, as I understand it, if you have bought from a dealer, then in most cases, provided you were not aware of the outstanding finance then you are deemed to have bought the car in good faith (Hire Purchase Act 1964, section 27) and you are deemed to have 'title' to the car.

The dealers are expected to perform their own HPI checks prior to selling on a vehicle. In such cases, the finance company would typically go after the dealer for recovery of any outstanding amount.

I'm not sure what part of the registration docs you have, as they changed them a few years back to bring them more in line with european documents. I think there's about 3 different versions around atm.

I wouldn't worry too much yet though. You are deemed to have a valid claim to ownership, by virtue of the fact that you bought it from a dealer in good faith. Best case, people have to chase the dealer. Worst case, they have to give you a refund & compensation.

Chances are though that everything is in hand & the dealer will eventually get the paperwork pushed through & you will get the relevant docs in the post.

cwcw

Checked with finance company - no cheque even received, let alone cleared.

Have taken advice from Consumer Direct and they have told me I can reject the sale and seek a full refund on the basis of:

- registration plates not matching the title document for the vehicle (this is illegal, as well as contravening Trades Descriptions). The car has the original plates on where the car is still registered with the DVLA with the private number.

- him selling the car when he has not paid off the finance settlement, i.e. selling the car when it is not his to sell.

She said if I choose this route I need to act sooner rather than later (within 7 days of collecting the car is best or he can argue acceptance of goods).

I know he is very unlikely to accept my refund request and this could kick off a very long and drawn out process. However, I am starting to think it is the safest route to take, rather than keep waiting and checking if the finance has been cleared and the registration transferred. If he doesn't keep his word about the finance I could end up with a car owned by a finance company and have to argue buying in good faith, etc. I will also be stuck with a car I cannot drive because of the number plate issue, which the DVLA could take weeks to process.

What is my best option? Should I hold off another working day or 2 (but keep within the 7 days) and see if the finance clears (my main worry), should I threaten him in writing (email) of my intentions if he doesn't clear the finance immediately (finance company offers BACS transfers and this gives him one last chance) or should I just go for it and get a letter written to him to reject the goods and request a full refund under Sales of Goods Act?

cwcw

I have given them 2 working days to get the payment to the finance company, and threatened to reject the sale for a refund if not.

CFC

I hope you have followed this up with a letter sent preferably recorded delivery, detailing the fact that you will be rejecting it if not sorted within 2 days, keeping a copy.

cwcw

CFC wrote: »

I hope you have followed this up with a letter sent preferably recorded delivery, detailing the fact that you will be rejecting it if not sorted within 2 days, keeping a copy.

No, but the letter I send after the 2 days will be posted and recorded. This is just to give him a last chance.