Just found out my car has a logbook loan on it...

iwilson82 · 13 February 2017 at 11:39AM

Hi,

Hoping someone could answer a few questions for me...

Here is the background:

I bought my brothers car in January for £200 as it was a non runner, I fixed it and gave the car to my partner, this works great for us as we are getting marred in June so disposable income is all going in to the wedding fund so a cheap run around is exactly what we need.

On Friday I received a letter from automoney telling me that the car has a log book loan against it and it needs to be paid and it is now my responsibility, I accept that ultimately I need to pay them something, in a ideal world this money would come from my brother who sold me the car without telling me any of this but we don't really speak and I have no chance of getting money out of him. I didn't HPI the car as it was £200 and I didn't expect my brother to con me but sadly, I was wrong.

Reading the letter, it implies that this is now my debt? Is that correct? Surely buying a car with a logbook loan on it can't result in me getting a CCJ if I don't pay it?

As stated, the car is a 17 year old Corsa that has a book price of around £400, are they really going to bother chasing this and sending a recovery truck and putting it through the auctions to sell for next to nothing?

Surely the original borrower can't have the debt wiped out by simply (fraudulently) selling the car?

What are the chances of them listening to reason and agreeing that its not worth much money and allowing me to make a fair settlement? The original loan was £250 and I am agreeable (not happy) to pay £150 to keep the car and make this situation go away, chance out of 10 for that?

PeacefulWaters · 13 February 2017 at 11:51AM

The debt is probably much more than the amount originally borrowed as I'd assume interest will be mounting.

You're not liable for the debt, but the car is a goner unless you can come to a full and final settlement with the lender.

Your brother is a scumbag.

foxy-stoat · 13 February 2017 at 11:53AM

It is not your debt so you wont get a CCj if you dont pay it.

You may/will lose the car though if you do not settle your brothers debt as he did not have good title to sell the car.

Upto you how you proceed.

iwilson82 · 13 February 2017 at 12:07PM

Thank you for the replies, the original loan was for £250 but the total payable is an obscene £700 +

foxy-stoat · 13 February 2017 at 12:17PM

Not worth settling then, either hand the keys back when/if they rock up to reposess or if its worth selling spare parts from it now to get your money back and scrap it.

Your brother is a scummer !

Gambler101 · 13 February 2017 at 2:40PM

iwilson82 wrote: »

Thank you for the replies, the original loan was for £250 but the total payable is an obscene £700 +

Not obscene at all, considering all the extra interest, fees etc that get added when someone doesnt stick to what they promised and agreed to. The only obscene thing in all this is your brother.

WillyWonga · 13 February 2017 at 2:41PM

If you had a receipt from your brother it's a different ball game as could show you bought it in good faith. But I guess it was cash which as brothers you would expect not to do any paperwork. I would call automoney and say car is worth £250, probably get £100 auction and you'll have a fat chance of getting any money out of my brother whereas I will offer you £150 to buy the car off you.

jonesMUFCforever · 13 February 2017 at 3:09PM

WillyWonga wrote: »

If you had a receipt from your brother it's a different ball game as could show you bought it in good faith. But I guess it was cash which as brothers you would expect not to do any paperwork. I would call automoney and say car is worth £250, probably get £100 auction and you'll have a fat chance of getting any money out of my brother whereas I will offer you £150 to buy the car off you.

I disagree with this.
The brother did not have good title to sell the car whether with a receipt or not.
You would only have been covered if bought from a garage.

iwilson82 · 13 February 2017 at 3:32PM

All sorted now, called Automoney and must say they where very helpful. Explained the situation and released the interest in the car for £158 which I paid, all documented on email and I have my proof that the car is no longer collateral.

No doubt they will be chasing my brother for what he owes sooner or later, good luck to them, they can join the long queue.

Thanks for the replies, very annoying for me as I have always been a cautious buyer and paid for HPI checks and what not, just didn't even occur to me on this purchase as I thought I knew the car.