Purchased a car & found out it has outstanding finance

User217

Hi guys,
I'm aware of the fact that this has been asked before but I feel like it's relevant to ask again.

I have purchased a car from a private seller at the end of last year. I kept this car for 6 months but because of moving homes I had to list it for sale as my insurance went up enormously due to the area change.

Upon purchase I wasn't very knowing about cars and as far as I knew a hpi check would tell me only if the car had been involved in a car accident. This was the case up until yesterday - when a couple came to view my car and did an in depth hpi check ( had no idea there were different types of hpi checks ). The lady told me it showed up to have outstanding finance so I was shocked, I didn't even understand what that meant or how anyone could know that or even how I could own a car that's in that situation.
So I read up on it and came across section 27 of hire purchase act if I'm not wrong as well as mention of buying a car in good faith. I honestly didn't know such a thing existed and I'm having problems because I this now.

I went on to the website the lady told me about and performed my own check as I just couldn't believe it, I used the same website she told me about ( rac ).
I then found out that some sort of finance was taken out about two and half years ago.
I was absolutely shattered at that as selling my car was a way of paying insurance cancellation fees and broker fees as well as putting the remainder aside. I don't know if this is relevant but the car was just a normal little car used for commuting - it was priced the same as other cars of the same year and make.

I called the finance company which details I took from the report and they said that they'll get back to me but apparently they have a right to repossess the car- despite me not knowing anything about this at all. I have proof of payment made to the previous owner but I don't know what to do about this situation and it's extremely stressful especially when it's my first car!
Can anyone relate or give any advice / information?
Thank you

wealdroam

User217 wrote: »

Hi guys,
I'm aware of the fact that this has been asked before but I feel like it's relevant to ask again.

I have purchased a car from a private seller at the end of last year. I kept this car for 6 months but because of moving homes I had to list it for sale as my insurance went up enormously due to the area change.

Upon purchase I wasn't very knowing about cars and as far as I knew a hpi check would tell me only if the car had been involved in a car accident. This was the case up until yesterday - when a couple came to view my car and did an in depth hpi check ( had no idea there were different types of hpi checks ). The lady told me it showed up to have outstanding finance so I was shocked, I didn't even understand what that meant or how anyone could know that or even how I could own a car that's in that situation.
So I read up on it and came across section 27 of hire purchase act if I'm not wrong as well as mention of buying a car in good faith. I honestly didn't know such a thing existed and I'm having problems because I this now.

I went on to the website the lady told me about and performed my own check as I just couldn't believe it, I used the same website she told me about ( rac ).
I then found out that some sort of finance was taken out about two and half years ago.
I was absolutely shattered at that as selling my car was a way of paying insurance cancellation fees and broker fees as well as putting the remainder aside. I don't know if this is relevant but the car was just a normal little car used for commuting - it was priced the same as other cars of the same year and make.

I called the finance company which details I took from the report and they said that they'll get back to me but apparently they have a right to repossess the car- despite me not knowing anything about this at all. I have proof of payment made to the previous owner but I don't know what to do about this situation and it's extremely stressful especially when it's my first car!
Can anyone relate or give any advice / information?
Thank you

You are right, it has been asked before.

The finance company have no right to repossess your car. Who told you that?

This very recent thread will help you understand your situation:

Purchased a car, Didnt know it had Outstanding Finance

Of course, if you still have questions after having read that, the please do come back and ask them.

unholyangel

This isn't a straightforward area and many details can affect your position.

You paid market price which is good - paying significantly less than market price can be used to show you didn't buy it in good faith (because of the old saying "if it sounds too good to be true...").

But there are other factors which can have an impact - some of them will be outside of your control/awareness. Such as if they used a fake license to get the original HP deal, it can void that HP deal which then means your purchase doesn't satisfy the requirements of section 27 as no HP agreement existed.

Ask the finance company about section 27 and see if they give any clues in response as to what they might be relying on. Don't just accept what they tell you as correct assuming that companies wouldn't do anything they're not supposed to - we have so many laws/regulatory bodies/consumer rights because of companies doing exactly that.

If the finance company still maintain they can repossess the car, get proper advice if you can (even a free half hour consultation) - far too many intricacies for us to do anything more than give general advice.

bris

Whilst it's true that an innocent purchaser has a legal right to keep the car there are other factors that make this difficult.


As already said under market value is one but so is also buying it from someone you know, such as friends and family. These are often people who are known to be complicit in the sale of financed goods.


If you bought it off a stranger for a fair price then you have nothing to worry about.

steampowered

Even if you own the car, I'm not sure the finance company will agree to remove the HPI reference.

So the car may unfortunately be difficult to sell.

ljonski

there was a very recent thread on the same subnject answering all your qs

wealdroam

ljonski wrote: »

there was a very recent thread on the same subnject answering all your qs

Yes, see post#2.

John_ler

Sorry , I use voice text, as screen is smashed on my phone, sorry for butting in guys

harrys_dad

John ler, a couple of pieces of advice. Firstly, start your own new thread. Secondly, use paragraphs to split up that wall of text.

if you do both of these things people are more likely to reply.

DoaM

Thirdly, don't spam multiple posts with the same wall of text.