outstanding finance on car

ilovebanksMCMLXXXI

Hi

I reckon it would be highly unlikely you will be able to 'take on' the outstanding finance.

If the repayments are not kept up on the HP, you will lose the car and that sadly is a fact and if the funder cannot contact the agreement holder then the car will be reported stolen.

My advice would be to tell the previous owner that if he is adamant the credit has nothing to do with him then he should inform you of where he got it from because you will hand this matter to the Police, DVLA and Trading Standards.

Unless the person you bought the car from is very dim, that should get him to provide you a little more information.

It's a terrible position to be in but the sad fact is that IF there is outstanding finance on your son's car then the finance company will come looking for it if they do not get paid.

I do sympathise and it sounds like you're being very proactive and that's good.

Best of luck

cardinalbiggles

Its a crap situation to be in but if the car has outstanding finance it still belongs to the finance company if it was bought privately.

The exception would be where the car was bought from a company / dealer who are then liable and not you.

toffe

this doesn't sound like a finance company to me it sounds like a log book loan has been taken out against the car by the previous owner.

i say that because of the term "chattel mortgage" this is a very particular type of security which is not usually used by normal finance companies but is used almost exclusively by log book lenders.

it is different to the relationship between a finance lender and a buyer because the car never belonged to the log book lender origionally and so the right of ownership is not automatic.

If this is a log book lender then what has happened is the log book lender will of got the previous owner to sign a bill of sale, agreeing that the car becomes the property of the lender if the previous owner does not repay a loan given to him by the lender. The lender then registers this bill of sale with the high court as proof that they had "bought" the car before you by way of a chattel mortgage.

often these chattel mortgages don't show up on hpi checks untill the log book lender realises that the car has been sold and applies for a warrant to repo the goods.

this is a very speacilised area of law to contest but i beleive it can be done and i would reccomend you pop over to the consumer action group website, if this is a log book loan issue, as they have a section of their site dedicated to fighting these log book lenders and their chattel mortgages.

best of luck

julies59

hi we are in the same situation as you,we bought a car and didnt know it was on finance till we had a letter from the finance company saying they owned the car.
however as we didnt know the car was on finance we are classed as the :innocent purchaser: and as the finance is with the previous owner and not you they cannot take the car back.
you are the new owner however you cannot sell the car because of the hpi finance marker on the car.
you need to write to the finance company tell them you are the innocent purchaser and they will have to remove the marker as the finance is with the previous owner not you.
if they say they are not going to come and get the car but wont remove the marker until the finance is settled get this in writing and write to hpi and tyhey will investigate because if the finance company are not taking the car back then they should not have a marker on it,hope this helps

pinkshoes

sherbiecat wrote: »

The guy who sold it to him told us he had done a hpi check and it was clear.

I would suggest sending a recorded delivery letter to the guy who sold it to you, giving him 14 days from receipt of this letter to contact you to arrange a full refund on the car, as he quite clearly lied to you when selling.

Tell him if no contact is made in 14 days, and no refund is received, then you'll be taking him to court for the money.

It's worth a try! it may have been a private sale, but the guy quite clearly lied!

stugib

pinkshoes wrote: »

It's worth a try! it may have been a private sale, but the guy quite clearly lied!

Unless toffe's interesting take on this is true.

sherbiecat

Thanks to everyone for taking the time to reply. We have done a lot of research into this type of mortgage now and basically we are stuffed! People who are innocent of buying a car with a chattel mortgage still against it have NO rights whatsoever, the car belongs to the loan company and they have the right to come and remove it. I went to citizens advice but all they did was give me the number of consumer direct (who had told me to go to citizens advice) I was then put through to trading standards who were only really interested in the guy we bought the car off! So in the end I phoned the loan company myself. To be fair they were very sympathetic and agreed to let us take on the finance and even knocked £200 off. Not ideal but we are stuck between a rock and a hard place!
The morel of this story is...ALWAYS do a hpi check before buying a car!!!!!!!

Fox1234

hi, I had a similar problem with a car I bough last year. The previous owner had o/s finance and the fiance company wanted the car back. we took the finance company on via solicitor and won. (Got to keep the car).
i've only seen this thread today and it might be too late if you've already agreed terms with the finance company, but let me know if you require more info and I can dig out the letters we sent and the arguments used.

dirty

Just did a check on a car I'm looking at and it came up with this:

Outstanding finance
Recorded against VRM
Description RAV 4
Date 07/10/2010
Finance house LOG BOOK LOANS LTD
Finance house telephone 0870 033 9530
Agreement reference xxxxxxxxxxxxxxx
Agreement type Chattel Mortgage

Should I walk away?
The guy has only had it three weeks and is selling due to it being too big for his wife......

unholyangel

dirty wrote: »

Just did a check on a car I'm looking at and it came up with this:

Outstanding finance
Recorded against VRM
Description RAV 4
Date 07/10/2010
Finance house LOG BOOK LOANS LTD
Finance house telephone 0870 033 9530
Agreement reference xxxxxxxxxxxxxxx
Agreement type Chattel Mortgage

Should I walk away?
The guy has only had it three weeks and is selling due to it being too big for his wife......

Contact them and ask if its still outstanding. The old rule may be overused but its more often true than not.......
If it sounds too good to be true......it probably is.

If its an exceptionally good price ask yourself why.