Previous owner finance

oneswoof

A Peugeot 207 purchased for £2.500. from a dealer two years ago, has just been repossessed by Santander due to outstanding finance from a previous owner [not the dealer]. Any one got any thoughts on what can be done?

debtdebt

Is this a made up scenario?

System

You go after the dealer for the £2500.

forgotmyname

You do a HPI on your next car?

facade

What communication did you have from Santander prior to the seizure?
What did you do then?

I believe for a dealer to sell a car with outstanding finance is criminal fraud, as it is not his car to sell, he has to show due diligence- he should have hpi'd it.

oneswoof

No, it is not a scenario, a friend is trying to deal with the situation and asked for help.

oneswoof

facade wrote: »

What communication did you have from Santander prior to the seizure?
What did you do then?

I believe for a dealer to sell a car with outstanding finance is criminal fraud, as it is not his car to sell, he has to show due diligence- he should have hpi'd it.

I am advised there was no prior notice from Santander. The point about the dealer being negligent in selling on is worth investigating. Thank you.

konark

Your friend obtained good title to the car when he bought it, as he bought it 'in good faith' from a dealer. It's his car and no longer belongs to the bank.

You can claim against the dealer who sold it with outstanding finance, you can also ask Santander why they repossessed a car they knew had been sold on to an innocent third-party and so was legally no longer theirs.

HPIs are worthless when buying from a dealer, not only is the dealer fully liable but cars often have bank finance on them to enable the dealer to hold stock.

debtdebt

konark wrote: »

HPIs are worthless when buying from a dealer, not only is the dealer fully liable but cars often have bank finance on them to enable the dealer to hold stock.

Not true. A proper HPI will tell you which finance houses hold a charge on the vehicle so you will be able to differentiate between dealer finance and any other finance on the car.