Bought car with outstanding finance :-(

boqq_2

Pretty silly I know. The dealer said he had an Experian report which he was going to show us before buying the car. So we did not do another. We stupidly forgot all about it at the time. Very young kids and a migraine- not an excuse I know but... Anyway contacted him and he sent the report which has a caution-finance on it. He promised he'd cleared it but I'm worried. Is he liable or are we? I paid a fraction of the price by credit card. Does that cover me? :mad:

bengalknights

You would be liable as the owners

NeverEnough

If there is outstanding finance attached to the car as in an HP then unfortunately, the car belongs to the finance company, not you, and it was not the dealers to sell to you - garages do sell cars with HP outstanding all the time, and settle the finance, but you need to see that this is done or you could face losing the car and everything you paid for it, and would only be able to pursue the car dealer in Court.

If you paid over £100 on a credit card, and the transaction turns out to be fraudulent / a scam of sorts, I think you may be able to reclaim the full amount you paid from the card company, perhaps someone will confirm this to be the case or not.

boqq_2

So aren't dealers supposed to be responsible? This is a local dealer for a leading make. So I thought they wouldn't risk this. Salesman promised it was cleared and he'd forward clearance when they get it...

NeverEnough

Its quite likely the dealer will settle the finance - loads of dealers do this all the time when cars are part-exed with outstanding finance.......just make sure you get proof that it has been done.

arcon5

Are you a private buyer? If so you have some protection from the car being taken away from you, as an 'innocent buyer'.

I will find and quote the relevant legislation.

arcon5

http://www.legislation.gov.uk/ukpga/1974/39/schedule/4./paragraph/22

vaio

it's unlikely to be a problem, but if it is then strictly speaking CCA protection won't work as the OP knew there was finance on the car. CCA only covers where the buyer was unaware of the finance and not, like in this case, where the buyer knew about the finance but trusted the seller to pay it off.

However, s75 via the credit card will protect against either eventuality.

boqq_2

Yes I'm a private buyer.

boqq_2

I only found out after buying the car, the next day to be exact. The salesman never mentioned it before. He said he had a report but not that there was outstanding finance. We assumed it was OK!!!

verityboo

It may have been paid off but after the report was done, or paid off before and the relevent database had not updated. How long ago did you purchase the car? I would be tempted to just do another cheap check and see if the finance still shows