Log Book Loan Question

anotheruser

So if someone takes a loan out and uses their car as a guarantee, the loan company keep the v% document, correct?

If so, if I purchase a car that comes with the V5 document, I know automatically it doesn't have a loan against it, correct?

Thank you

straighttalker

No. The person who raised the loan could have claimed they lost their V5 and got a replacement from the DVLA.

OddballJamie

Only costs £25 to get a replacement logbook.

Anyone know if they are picked up on HPI checks?

Car_54

As above, no.

And in any case the V5c isn't proof of ownership.

anotheruser

Indeed!

As I was talking about with a colleague today. Which means it wouldn't be too difficult to steal someone's keys, then simply say I own the car after writing out a fake receipt.

There's almost no point in having the V5. Although I would be interested to see the amount of cars that are registered with one person and owned by someone else... apart from company cars of course.

facade

If you open the V5 and look at the foot of the inside page, there is a DOCREF with a date of issue.

Under the current keeper's address is the date they acquired it. If there is a big gap (more than about 6 months: it is the DVLA we are talking about here ) chances are the V5 is a replacement.

AFAIK, logbook loans do not show on a HPI check, I head that "the Government" were going to "do something about Logbook Loans" but it is The Government we are talking about.:rotfl:

colino

If you are a genuine privateer, pay for the full HPI Check (accept no others) and comply with their conditions and go through their guidance, HPI will cover a logbook loan/bill of sale transaction under their guarantee. If your not sure, phone them and check before you buy.
The first check you should be doing anyway is on the owner, their house and how the car and its condition match each other.

Tigerprint

On the front of the V5, it will have a note stating 'duplicate V5 issued' & the date. I guess you just need to be more careful with the duplicate ones.