What happens if she does not pay off this car loan and sells the car??

Prothet_of_Doom

Joe_Horner wrote: »

Bear in mind that the registration document does NOT prove ownership. It's very clear indeed on that point.

That is correct V5 is not proof of ownership, it belonds to VOSA or DVLA or perhaps the Queen (Her Majesty's Government;)), and tells them who to send the invoices to for yearly tax mugging, and scamera van NIP's.

When I buy or sell a car privately I make sure there is a signed receipt which states that the seller wholy owns the car, and it is not subject to any HP or Loan agreement, or any shared ownership. If I'm buying I get them to prove that they are who the V5 says they should be.

The OP's friend is an !!!!.

atrixblue.-MFR-.

shaun_from_Africa wrote: »

Provided that the purchaser of the car was unaware of the fact that there was outstanding finance on the vehicle and they were the first innocent purchaser, then they still get legal title to it and it can't be repossessed.

This is covered by S27 of schedule 4 of the consumer credit act 1974.

I wasn't aware that the consumer credit act applies to private domestic sales. in all ive seen the police gets a report of a stolen vehicle they seize it, it does not mean the buyer has legal rights to it if it was to them fraudulently.


I know of some cases where by the finance company has allowed the buyer to keep the car and chased the seller for the money, but 9 times out of ten the legal rightfull owner (finance co) takes it back leaving the buyer to chase the seller for the money they spent on it.


I thought the correct application to the consumer credit act is when the car is sold via a dealership with outstanding finance, its then reported stolen by the finance co because the dealership went bust or sold it dishonestly not paying off their crediters and the car is then recovered, the buyer has legal rights to keep it under the above act as it was purchased through a dealership and not privately.

shaun_from_Africa

atrixblue.-MFR-. wrote: »

I wasn't aware that the consumer credit act applies to private domestic sales. in all ive seen the police gets a report of a stolen vehicle they seize it, it does not mean the buyer has legal rights to it if it was to them fraudulently.

If a car is sold on with undeclared outstanding finance, then it's not a strict consumer to consumer contract owing to the finance company being involved.
When buying a stolen car, ownership doesn't transfer to innocent buyers.

There used to be a good Trading Standards website with this information on, but since they stopped dealing with the public and Citizens advice took over, this site isn't available any longer.
However, there are still plenty of other sites such as this one:
http://www.directline.com/car-insurance/advice/buying-selling-cars/private-sale.htm
that say the same thing.

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.

DCodd

shaun_from_Africa wrote: »

If a car is sold on with undeclared outstanding finance, then it's not a strict consumer to consumer contract owing to the finance company being involved.
When buying a stolen car, ownership doesn't transfer to innocent buyers.

There used to be a good Trading Standards website with this information on, but since they stopped dealing with the public and Citizens advice took over, this site isn't available any longer.
However, there are still plenty of other sites such as this one:
http://www.directline.com/car-insurance/advice/buying-selling-cars/private-sale.htm
that say the same thing.

Would this apply in this case though as the OP's friend is just the registered keeper and not the owner? Even if the finance was paid off in full, she would not be the owner but just the registered keeper.

Carol1999

Wow this is all complicated re ownership etc, but she's still not planning in paying off the rest of the finance on the car. We shall wait and see what happens but I don't think it's going to end nicely at all!

forgotmyname

A few hours in the cells may make her think twice.

He can prove owenership. He pays for the finance. She is just the registered owner. Just tell her your not visiting her in prison.

Carol1999

No she's been paying the finance on it from her bank account however the finance is in his name.shes the registered owner for the car.

forgotmyname

Registered keeper is not always the legal owner. The V5C states that.

So he has the finance agreement to prove it's his car. She has the V5C to prove she is the keeper. But not the owner.

So many ways for it to end badly...

arcon5

I await the thread 'being sued by ex-partner, help!'

DKLS

I feel for the poor sod who buys this car and do hope they do a hpi check on it before being fleeced.