HPI Car Check - Loan

yoshiyella

Hello all,

When you get a HPI check does it show all active loans or does it just say it has finance on it?

For example if there was 2 loans secured on the car would it show the 2 loans or just that it has finance secured on it?

Thanks, Simon

yoshiyella

Just found out that HPI Check have live chat and they have confirmed it lists every finance company.

poppasmurf_bewdley

Have you checked to see if a HPI check includes logbook loans? I don't think it does.

forgotmyname

Log book loan companies may not register their interest. So possible to buy a car that appears clear until they turn up to take it away.

yoshiyella

Didn't realise that at all! So a pointless situation then as those with logbook loans are the ones who are most likely cause an issue!

poppasmurf_bewdley

yoshiyella wrote: »

Didn't realise that at all! So a pointless situation then as those with logbook loans are the ones who are most likely cause an issue!

That's why I mentioned it. There have been several cases on these and other forums of people who have bought a car only to find there is a logbook loan outstanding despite having done a HPI check, and have lost the car.

Marktheshark

Log book loans are Trust law liens, they only have register them when the lien becomes active as in non payment.
In a log book loan the property is under the total ownership of the holder of the lien, there is no finance or loan, it is just a term, its a lien and the owner can take back their property any time they chose.
Upon full payment the lien is destroyed.

HPI style checks love to blur this line, but the truth is no HPI or similar check can trace a log book loan.

Never buy any car without the full V5C document, green slips, lost log books are all a major warning sign.
Such cars may change hands quickly several times via facebook dealers, watch out for only got green slip, this is the old green slip.
Often they do not have time to apply or the money for a replacement, hence why they are borrowing money from sharks.

As soon as the new owner registers the car, the log book loan firm will activate the lien and take back the car.

Nothing can search for them with any guarantee, only suspicious diligence can help prevent losing your hard earned cash.

owlet

That's interesting. Knowing nothing about log book loans, I presume the owner doesn't receive the log book until the loan is paid - hence you saying to beware if the log book isn't available?

Derwent

owlet wrote: »

That's interesting. Knowing nothing about log book loans, I presume the owner doesn't receive the log book until the loan is paid - hence you saying to beware if the log book isn't available?

Bottom line is that if the seller doesn't have the VC5 document then there is a chance, however small, that there may be a logbook loan on the vehicle.