My car has still got outstanding finance

amro2011

I have been looking at this foroum and you seem to know alot about the problem iam in. I have recently bought a vehicle from a "friend". That person had owned the vehicle for about 18 month before selling it to me. I bought the vehicle about a month ago before I bought the vehicle i did a check on the car using mycarcheck. I was in a garage yesterday when they did theyre own HPI report on the vehicle and it came showing outstanding finance. The finance is not on the person that i bought the car from, but it is on the person that had the vehicle before that. I did ring the finance company and they stated that they have financial intrest in vehicle and are wanting it back. I am really scared and worried as the car has cost me £6000.

I am not being rude please only give advice or comment if you have been in simmilar situation or if you are 100% sure about what you say.

mountainofdebt

firstly welcome to MSE although I'm not sure this comment

amro2011 wrote: »

I am not being rude please only give advice or comment if you have been in simmilar situation or if you are 100% sure about what you say.

will win you many friends

I'm curious as to why the garage would have done their own HPI check - were you thinking of selling it ?

The only advice I can give you is to get down to the CAB tomorrow and get proper advice as to where you stand legally.

ROY47

mycarcheck don't look for finance or so it seems

they have some reviews here

https://forums.moneysavingexpert.com/discussion/410163

For only £4.95 we check for and supply instantly:
Stolen (Police Interest)
Stolen & Recovered
Write off / Total Insurance Loss (Recorded Accident Damage)
Scrapped by the DVLA
Subject to Plate Transfers
Colour Changes
Make and Model
Number of Former Keepers
VIN (Chassis Number) Check
Engine Number and Size
Exported
Date First Registered
Year Manufactured
Colour
Fuel

but you may have a hope with this

The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement.

This means that the finance company is not entitled to repossess the car from you. Remember, this does not apply to cars which have been stolen, or cars that were subject to a lease or hire agreement.

Browntoa

http://www.directline.com/motor/buyingprivate.htm

The car has outstanding finance?
If a finance company is still owed money from the previous owner of the car it would be unable to recover the car against your will. The Consumer Credit Act 1974 gives ”good title” to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company. However, if you had known or had suspicions about any agreement, and didn’t ask any questions, you would not be considered to be an innocent purchaser – ownership would not pass to you and the car could then be repossessed.
The only action you can take in these circumstances is to sue whoever sold you the car – if you can find them.

mcjordi

my car check iirc doesnt tell you about finance...

it only tells you about its insurance history and if its still stolen or not..

shaun_from_Africa

The info given by Browntoa is backed up by what Trading standards say on the matter.
http://www.tradingstandards.gov.uk/cgi-bin/wirral/con1item.cgi?file=*ADV0003-1011.txt

The Consumer Credit Act 1974 gives 'good title' to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you. Remember, this does not apply to cars that have been stolen, or cars that were subject to a lease or hire agreement.

I did ring the finance company and they stated that they have financial intrest in vehicle and are wanting it back

I'm sure that they do, but wanting it back and being legally entitled to get it back are 2 different things.
You should contact trading standards or consumer direct tomorrow and get them to confirm in writing what has been stated above, and then send a copy of this to the finance company.

Until you do this, they will probably keep contacting you trying to scare you in to returning the car.

Quentin

Although you do have "innocent purchaser" good title, the problem comes later if you intend to sell it!

NeverAgain_2

Does the good title protection apply to a private sale?

I thought I read somewhere it only applies to cars bought from dealers.

cardinalbiggles

NeverAgain wrote: »

Does the good title protection apply to a private sale?

I thought I read somewhere it only applies to cars bought from dealers.

If it applied to private sales as well it could never be enforcable, you could get a car on finance punt it to your mate.

Secondly the good title thing would mean that doing an HPI check is totally unecessary.

I think people should get expert advice on this.

shaun_from_Africa

If it applied to private sales as well it could never be enforcable, you could get a car on finance punt it to your mate.

But surely that is why written legislation usually uses the terms "in good faith" and the CCA specifically refers to "first innocent person".
If you bought a car from your mate and it had outstanding finance, it might be hard to show that you didn't buy it in good faith, or that you weren't totally innocent.

I agree though, Consumer direct or trading standards should be contacted asap for advice.

NeverAgain_2

A bit of Googling suggests private sales are covered if the claim is based on a hire purchase agreement.

But they are not if the car is leased or hired.

The legal definition of 'leased' and 'hired' could be interesting given the various types of finance on cars these days.


"The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement.
"This means that the finance company is not entitled to repossess the car from you. Remember, this does not apply to cars which have been stolen, or cars that were subject to a lease or hire agreement."

http://www.newcastle.gov.uk/core.nsf/a/tsusedcars