Car going to be repossessed

powerful_Rogue

Hi,
Im posting on behalf of my father in law who does not have internet access.

Last year he purchased a second hand BMW from an independant trader from their forecourt.

He has just received a court summons as apparently the vehicle still had finance outstanding from the previous owner.

He's gone back to the trader and they have pretty much washed their hands of the matter.

It appears the likely outcome of th court hearing is repossession, but we was just wondering if my father in law has any come back on the trader?

You would have though they would have carried out some kind of check before taking the car in and they selling it? I could probably understand if it was a private sale, but not from a trader.

My father in law paid for the vehcile with a bank loan, dont know if that makes any difference at all.

alanrowell

Trader is in the wrong pure and simple. All they are trying to do is hope that your FiL will go away and not bother them. So either sue them through the Small Claims Court or if it's more expensive then use a solicitor.

Also report them to Trading Standards as the trader fraudulently sold that car

In short keep the pressure on the lying toad until they return the money.

As for the bank loan - he'll have to keep paying it UNLESS the loan was taken through the trader

KeithP

Alanrowell is right.

Quite simply... the dealer sold a car which wasn't his to sell.

powerful_Rogue

Many thanks for your replies. The dealer did offer finance, however he went to the bank instead as it worked out cheaper.

Am I right in thinking he will have to file with the small claims court after the court hearing where they will decide the fate of the car? - We pretty much certain they will reposses it - Or is this something he can do before hand?

powerful_Rogue

Just spoken to FIL and he states that its the actual trader that has finance outstanding on the car! Its currently £4500. FIL purchased the car for £6000.

The trader has stated he will contact the court on Monday and offer to pay £1000 a month until its cleared. Hopefully the court will accept that and the matter will be over with.

L.S.D.

It's not the traders to sell, so you Fil doesn't actually own it. I'm guessing that even after the loan is paid off your Fil would have to re buy it to make it legal, even if money was not passed over again. Could be wrong though.

vaio

Could well be that dad can keep it, it depends what sort of finance, if it’s on hire purchase I don’t think it can be repossessed , s22 of the Hire Purchase Act 1964 (embodied as s27 of schedule 4 of the Consumer Credit Act 1974) says the first innocent purchaser has good title to goods on which there is outstanding finance but only if they have no knowledge of the finance.

Full text about a third of the way down this link http://www.statutelaw.gov.uk/content...&filesize=1773

Do you know what sort of finance agreement it is?

powerful_Rogue

No idea im afraid. I'll get in touch with FIL tomorrow to find out.

Interesting post though, much appreciated.

mark5

I'm guessing the dealer pays for his cars with a bridging loan which is secured against his stock.

vaio

Don't suppose he used a credit card to pay for any of the cost did he?