The car I'm trading in has flagged up a HPI check finance problem

marcosdjcm

To my surprise, a car I bought 5 years ago has been refused at trade-in with a dealer because of a HPI check showing possible outstanding balance.

I never did a HPI check before, it's never come up.

The car is worth nothing, I was just going to get a little discount when trading it in. And no company has ever contacted me for collection. The finance is from over 10 years ago, the car is 15 years old.

I'm thinking to just have the car collected by a scrapping service and forget about it. Any advice?

I am in no position to voluntarily begin a witch hunt for which previous owner this applies to etc.

Thanks.

shaun_from_Africa

Even if there is outstanding finance and it's not simply a paperwork error, I wouldn't worry about it too much.

Provided that when you purchased the car you did so in good faith and had no knowledge or suspicion that the seller didn't have the legal right to sell it because of the finance then you still became the legal owner of that vehicle.
This only applies if you made the purchase as a private buyer and that the car wasn't on a lease or had been stolen prior to you making the purchase.

It might be worth pointing this out to the dealer concerned and if they query it, ask them to check Section 27.2 of the Hire Purchase Act 1964.
http://www.legislation.gov.uk/ukpga/1964/53/section/27

Castle

Did you buy it from a Garage?

motorguy

marcosdjcm wrote: »

To my surprise, a car I bought 5 years ago has been refused at trade-in with a dealer because of a HPI check showing possible outstanding balance.

I never did a HPI check before, it's never come up.

The car is worth nothing, I was just going to get a little discount when trading it in. And no company has ever contacted me for collection. The finance is from over 10 years ago, the car is 15 years old.

I'm thinking to just have the car collected by a scrapping service and forget about it. Any advice?

I am in no position to voluntarily begin a witch hunt for which previous owner this applies to etc.

Thanks.

Could simply be a finance marker on the car that wasnt removed at the time. It happens more than you would think.

Personally, i'd ring the finance company and ask them.

marcosdjcm

Castle wrote: »

Did you buy it from a Garage?

Yes and I dug through my phone photos and I have a a photo of their desk with us signing the V05 and a photo of the outside of their small garage.

So we didn't buy it privately. We had no reason to suspect it would need a HPI check.

forgotmyname

I wonder if its my sisters old car? She went bankrupt and the finance company never removed the marker from it.

Made it difficult for her to sell.

It would be 15 years old now..

marcosdjcm

motorguy wrote: »

Could simply be a finance marker on the car that wasnt removed at the time. It happens more than you would think.

Personally, i'd ring the finance company and ask them.

I was worried this would open up a can of worms and begin a months-long and expensive battle of proving it has nothing to do with me, who only bought the car 8 years after this mark on it's record.

What do you think?

motorguy

marcosdjcm wrote: »

I was worried this would open up a can of worms and begin a months-long and expensive battle of proving it has nothing to do with me, who only bought the car 8 years after this mark on it's record.

What do you think?

Even IF theres outstanding finance on it, they'll send you out a form to confirm you knew nothing about the finance on it at the time, and thats the last you'll hear of it.

They cant take the car back.

Castle

marcosdjcm wrote: »

Yes and I dug through my phone photos and I have a a photo of their desk with us signing the V05 and a photo of the outside of their small garage.

So we didn't buy it privately. We had no reason to suspect it would need a HPI check.

You may well have a claim against the Garage if they have misrepresented the car when it was sold to you.

marcosdjcm

motorguy wrote: »

Even IF theres outstanding finance on it, they'll send you out a form to confirm you knew nothing about the finance on it at the time, and thats the last you'll hear of it.

They cant take the car back.

Thanks. I don't mind so much if they took the car back, I'm more worried about a 4-figure outstanding balance that somehow they are allowed to chase me for. I hope that's not possible,

shaun_from_Africa

marcosdjcm wrote: »

Thanks. I don't mind so much if they took the car back, I'm more worried about a 4-figure outstanding balance that somehow they are allowed to chase me for. I hope that's not possible,

As I explained earlier, if there was HP finance outstanding when you bought the vehicle then provided that you made the purchase in good faith you are still the legal owner of the car.

Any remaining debt is a matter between the person who signed the finance agreement and the HP company.