Help understanding HPI re finance and plate transfer

boots_babe

Hi,

We've just done a HPI check on a car we want to buy privately. The lady had already told us it had had a private plate on, which she's had removed ready for sale, and this is shown in the HPI check which is fine.

However we were unclear on the finance agreement situation from what the HPI check said, so we've run HPIcheck to ask, but are still confused and wondered if anyone could help.

The relevant statements from the HPI check report are:

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The current plate was transferred to this vehicle on 22/10/2014

<reg number> was applied to this vehicle on 26/03/2012

This VRM has been recorded as having an outstanding finance agreement

Outstanding finance VRM not currently recorded as having outstanding finance

Plate transfer Interest registered against a previous plate

---

HPIcheck when we rang, says this means that there is a finance agreement but it's against the previous plate, the private plate which has now been removed. They've said there is no outstanding finance on the car.

What I don't get though is, the private plate that has been removed could now be sat on no car at all, or could have been transferred to a new car (I don't know which). How can it be the case that the finance agreement is with the plate, as if the plate alone has little value, and wouldn't act as collateral against a car finance agreement surely?

So although HPIcheck have told us it's fine, I don't understand how it adds up so am still not comfortable. I'm assuming HPIcheck must have told us correct information which means the car is fine to buy, but I won't buy unless I actually understand how this is the case.

Can anyone help at all please? Many thanks.

boots_babe

The plot thickens. As I wasn't satisfied with what HPIcheck told my husband, I asked him to call back and ask the question that, if the finance has followed the private plate and isn't on this car anymore, how is the finance secured?

Well when he just rang back, he spoke to someone different. They told him completely differently, that the finance will probably be against the car, but that in order to properly check we need to provide the VIN number. Which we're about to do.

Shocked that they gave us apparently incorrect info on the first call though, a more trusting person may have just taken what they originally said at face value and bought the car. Seems very negligent!!

Anyway, will see what this additional VIN number check shows up.....

Nodding_Donkey

Are you buying it privately?

forgotmyname

I dont see a problem here. They bought a car on finance in 2012 or earlier. They transferred it to a private plate in 2012. Now they have transferred the plate to a new car or put it on retention ready to buy a new car.

Rather limited doing an HPI with just a reg number. Always get the chassis number first.

Go and look and make sure the numbers match all over the car also.

boots_babe

Well it's a good job I'm cautious and properly checked on this.

Having obtained VIN number, HPIcheck have confirmed the finance is against the car, not the plate. Which makes far more sense.

Otherwise you could buy a private plate and finance the car, then take the plate off and have no finance!!

Anyway, turns out the lady we're buying from is somewhat naive, and thought she could sell to us, then use the money we give her to pay off the outstanding finance. She was surprised when we pointed out nobody was going to agree to that!

So she's borrowed from her mum to pay the finance off. We'll check this with the finance company before handing over the money of course.

bigjl

This is how people have been defrauding Finance Companies for years.

There is however there is the possibility that this is a purely paperwork issue, as has occured in your situation

Talk to the seller and ask if you should pay the finance company directly is a good idea if anybody finds themselves in a similar situation