Bought car but hpi check shows personal loan?

cherry6

Not sure whether this is one for this board or the Motoring one.

I recently (last month) bought a Vauxhall Astra. It was advertised on ebay and I contacted the seller to view it before purchase. He was a nice man and I ended up making an offer whilst I was there and the transaction was completed 'off' ebay. He had a good reason for selling, he was disabled and was getting a motability car.

After a week of driving the car I was not happy with it. I was used to 4x4s and this wasnt right for me. I also found it needed some work. I decided to trade it in for a 4x4, found a car I liked and arranged with the dealer that he would take my car and I would pay the balance.
However, when filling in the paperwork he ran a HPI check and found that my car's previous owner had a personal loan through Santander Consumer Finance, date of loan was same date as when he bought the car. The dealer is obviously now nervous about taking my car, and couldnt get hold of Santander as they are closed today, so the whole deal is now on ice.
I tried ringing Santander, and although there loan section is not open today the gentleman in collections said he doubted anyone would tell us anything as the previous owner needs to do the talking, due to data protection.
Does anyone know where I stand with this? Why is it showing on a HPI check if it was a personal loan?

Thanks for any advice.

cherry6

In an ideal world yes I should have done. I honestly trusted this man, and I know I am a fool but would appreciate help and advice.

gb12345

Santander Consumer Finance offer a range of product for car buyers, one of which is a personal loan, which is not secured on the car.

They also do leases and PCPs, which will show up as secured on the car.

The fact that this finance has shown up on the HPI check would make me think that it is not a personal loan (the salesman may not know the difference of the types of finance).

Did you do an HPI check when you bought the car? Have you spoken to the previous owner to see what they have to say?

LittleMax

Sounds like he took out a log book loan, a personal loan secured against the car as opposed to a loan to buy the car.

cherry6

I paid the value of it, which was £2700, not less. I have tried messaging the previous owner through ebay but he has not responded as of yet. He lives about 15 miles away and am planning to go round there if I get no joy from Santander on monday.
Santander do offer personal loans which are NOT secured against the car:

http://www.santanderconsumer.co.uk/our-business/car-finance/personal-loan/

So I am guessing they cant repossess? Just want to be able to sell the car.

gb12345

cherry6 wrote: »

Santander do offer personal loans which are NOT secured against the car:

And therefore wouldn't appear on an HPI check. If it is appearing on the check then it is secured against the car and is not a personal loan.

Buzby

If all the dealer is going on is that the previous RK took out a personal loan at the same time, it is one massive leap of faith to construe it was secured on the car. The hint is in the title of the loan, not HP, and not showing on the DVLA RK database with a 'notifiable interest'.

If all they did was run the former RK's details and came up with a loan - so what? It isn't connected to the car itself. Someone is making heavy weather of your purchase attempt, and needlessly so!

gb12345

Buzby wrote: »

If all they did was run the former RK's details and came up with a loan - so what?

If I was the former RK and I found out that some random company had been performing credit searches on me, there would be hell to pay with their data controller.

cherry6

Just read a similar situation to mine on another website, and the information given to them is this:

'I specialised in this kind of lending for over 6 years and can CATEGORICALLY state that a personal loan puts no link between the provision of finance and the asset.

If the OP really has signed a Personal Loan Agreement he is free to sell the car at any time, but is obliged to continue the repayments until it is repaid in full, and he has no right to return the asset and walk away under HPs half/third rule. (He needs to check the original document because the finance type on HPI could simply be an input clerk entering the wrong code).

The finance is disclosed on HPI to make other potential lenders aware that the OP has this outstanding debt, and help minimise the risk that he ends up with multiple loans for cars that are sold on and turned to cash with no means of then servicing the debts, or assets that can be repossessed, but there is no reason why a potential purchaser should be put off by this as they will have clear title to the asset.'

Obviously I am hoping that is correct and that Santander are nice enough to state that when the dealer rings them on Monday lol.

Thanks everyone for your help and advice

Building_Surveyor

why did you not just complete the deal on ebay as advertised? there would have been some sort of protection then.

anyway no use now dwelling on shoulda woulda couldas.

Think the only way you will get answers is through santander.

sharpy2010

Building_Surveyor wrote: »

why did you not just complete the deal on ebay as advertised? there would have been some sort of protection then.

anyway no use now dwelling on shoulda woulda couldas.

Think the only way you will get answers is through santander.

Your advice is exceptionally useful, well done!