Is it a Criminal Offence to sell a car with outstanding finance? URGENT

far2812

To cut a long story short - I bought a car in Augus last year - and then sold it this year(at a loss obviously).

The guy I sold it to has just rang me to say that the insurance company have just repossessed the car as there was outstanding finance on it!

The O/S finance was in the guy that I bought it from.

He is now saying that it is a criminal offence and I will get done for it!

I had no idea when I bought or sold the car that there was outstanding finance on it!

Obviously I wouldn't have bought it!

HELP PLEASE

Tom1234

Quite often this is simply an issue with the DVLA/an insurer/the finance company not talking to each other.

I'd suggest getting on the phone to the insurer to find out what is going on (rather than taking someone's word for it). Maybe request an HPI check (checks vehicle ownership and outstanding finance if i remember correctly)

If there is outstanding finance on the vehicle, then that's not really your problem, it's the problem of whoever took out the finance agreement. However, ensuring that ownership of the vehicle has been transferred correctly is.

I would guess that the Insurer/DVLA still have the car down in the name of the original owner, and thus when his finance payments stopped they decided to send the boys round to reclaim 'their car'.

A few phone calls should sort the situation out easily.

Edit: For reference, I used to work in the Motor Insurance industry

far2812

It is just that apparently the police are on their way around here - I havent got the address of the people i bought it from!

What do I do now?

The log book is in the name of the person I sold it to!

Many thanks for your help

tori.k

im sorry to tell you but its against the law to sell a car with outstanding finance, you should have phoned the company and settled the finance when you came to purchase the car, tho can not understand why the HPI was not flagged when you brought the car,

pinkshoes

tori.k wrote: »

im sorry to tell you but its against the law to sell a car with outstanding finance, you should have phoned the company and settled the finance when you came to purchase the car, tho can not understand why the HPI was not flagged when you brought the car,

The finance wasn't for the OP to settle; it belongs to the person who sold the OP the car.

The OP bought and sold the car in good faith. I don't think getting an HPI is a legal requirement when buying - just recommended.

OP, when you sold the car on, did you get confirmation from the DVLA that the car was no longer in your name?

If the police to turn up, just tell them the truth that you had no idea it had finance on it, as nothing was mentioned when you bought it, and that you sold it on because you didn't like it.

Do you still have the contact details of the person who sold it to you? It is him that is in the wrong here.

far2812

Thanks Pinkshoes!

Unfortunately, I think I got rid of all the information of the person I bought it from once I sold the car.

The person I sold it to has the log book in their name.

Tom1234

The OP bought and sold the car in good faith. I don't think getting an HPI is a legal requirement when buying - just recommended.

As far as I'm aware it's not a requirement either.

tori.k

i sorry im an !!! should have took better time to read, was going from our experiance of buying with outstanding finance, the seller phoned the finance company and then we paid them off they day we took the car.

kitty_cat_2

Surely the DVLA records would have the name & address of the previous owner? I would assume that the police would be able to have access to this?

astonsmummy

I wouldnt worry too much, you bought and then sold a car in good faith, the only one who would face criminal charges would be the person who had took the finance out.

Tom1234

I actually go so far as to suggest that it might be worth contacting the police yourself and reporting that it appears a vehicle you've bought / sold on had outstanding finance on it that was not declared at the time of purchase.

At least that way you've made the police aware of the situation.