Car still on finance, now not my car!

Brown_suga

I have to agree with debt free chick, the car still belongs to the finance company.
And although they cannot just turn up and take the car away. All they have to do is go through the 'correct procedures' which includes issuing a default on your friend, letting him know how long he has to make some form of payment arrangement, and if still no joy they can go ahead and repossess.

The fact that you have paid your 'friend' the money is neither here nor there. He cannot selll what is not his. The legal title still remains with the finance company. Only he can sort this out. If he maintains he has paid then he should have paperwork to show this. Either he is a very inconsiderate friend by not ringing them to clarify the settlement of the debt, or he is not a friend at all and has just conned you out of your money.

Either way you need to get your money back from him somehow, the car will some way or another be going back to the finance company. Do not pay the finance as you will then be paying double the amount for the same car, and clearing his debt.

Malestrom

Make sure you keep all correspondence to and from the finance company. Also a record of any phone calls or emails made. If you should have to take your 'friend' to the small claims court to recover your money, these items will prove to be invaluable.

If you have money available to buy a temporary cheap runaround, why not hand the keys back to the finance company. They will collect the car and your involvement should come to an end as there agreement is with him, not you. They will pursue him for the outstanding finance, leaving you to recover your money through the small claims court.

kinc

I have been to CAB the paperwork that I have been given has some hope for me in it, first is who gets good title (Higher purchase act 1964) and second conditional sale agreement. This I believe gives me some rights in so much as finance company know it was conditional sale, both my friend and I have stated this, so I may have a claim to "good title" on vehicle.

Also I'm considering giving him the car back and getting my old car off him, although finance company has said Quote: In the meantime you must not dispose of the car until our investagations are complete. end quote.
@All thanks for advice and sympathy, if other people learn from this then this forum has saved money for others.

kinc

If anyone has this problem here's what you do; Tell the nasty finance company "I bought the car off a guy in a pub!"

This was confirmed by the advisor I've been dealing with!!!!!
It's completely dishonest of course, BUT, if only I'd known!

Mods can delete if not in keeping with moneysavingexpert.com

trace-j

There is a common law caveat called nemo dat which basically means you can't pass title in goods unless you yourself have title to pass. If your "friend" has not exercised his right to purchase under his HP agreement (the bit left after all monthly payments have been made) the finance company still owns the car (as the garage sold the vehicle to the finance company, who hired it to your friend). Your friend should have paid all remaining monthy payments & the right to purchase before he would have the title to pass to you. If he has only paid the last of the monthly payments and not the right to purchase, which could be the £3500. They can come and take the car back as is still their property.

However if during a private sale you had no reason to believe the seller did not have good title, title then passes to you at time of sale.

This doesn't work if buying from Traders as it is reasonable to assume that they can make the necessary checks to establish whether they have title in the car to sell it.

It is worth trying to get the following info:

1. What is the outstanding debt for- missed payments or right to purchase.
2. Where's the proof of your friend paying off remaining finance, there is a possibility that he thought that by paying the last monthly installment meant the car was his.
3. Get a copy of the credit agreement- hopefully your friend can do this.

You really have 2 options:

• The bought from the man down the pub if you want to keep the car as you believe to have acquired good title....or
• Hand the car back and pursue your friend for the money. It's not your name on the credit agreement so is in your friends interest to sort it. The Credit Company can't pursue you for someone elses debt, but can recover their property.

Good Luck and let us know what happens.

kinc

@ Trace-j Still ongoing will post outcome.


My friend is planning to go to Canada, but if I get CCJ against him then I believe he won't be allowed entry!