Sold car with HP on it

JustMe18

We also don!!!8217;t understand why to spend so much money, if you can buy something for £100. Unless there is something anout money laundering, as he was paying by cash.

davemorton

JustMe18 wrote: »

Hello. I have done one stupid things - I sold my car with HP on it in October, was too naive and didn’t know if I’m allowed to do that. Of course I’m paying that finance off after sale. In december police have repossed this car from the buyer and I’ve got letter that car was involved in crime and buyer registered it at fake address and had fraudulent insurance. Bank has agreed to sell this car and apply proceedings to my credit agreement, also asked details anout buyer and would i be able to recognise him. Today i received threatening call from him asking his money back, he was saying that knows my address and etc. I called police immediately and they rung him back advising not to get in touch with me anymore and sort everything through solicitors. Can somebody tell me what he can do to us at this point? As he was involved in crime i believe car was taken for that reason (i have a letter saying that).

But the money from the sale is not yours?

JustMe18

that’s why they are not giving money to me, but applying to my credit agreement to pay it off quicker. Just not sure what are the rights of the buyer? If he wouldn’t left that car somewhere and police wouldn’t take it than also bank wouldn’t touch it until I’m making payments.

poppasmurf_bewdley

What's happened to the five grand cash you got for the car? Have you paid this into the loan account?

davemorton

JustMe18 wrote: »

that’s why they are not giving money to me, but applying to my credit agreement to pay it off quicker. Just not sure what are the rights of the buyer? If he wouldn’t left that car somewhere and police wouldn’t take it than also bank wouldn’t touch it until I’m making payments.

Thats what I was trying to say, it should not be being used to pay off the credit agreement that YOU should be paying.

Nub

You sold the bank's car and kept the money. The bank have taken their car back, but you've duped the buyer out of 5k. In court, the buyer would probably be able to claim that back.

Sorry if this sounds blunt, just preparing you for some potentially bad news.

flower77g

Also the bank can pursue you for their costs in selling the car and any shortfall; so the likely eventual resolution if it it reaches a court case will be will be that you end up having to pay any shortfall back to the bank, and reimburse the buyer the £5,000 he paid you, plus court costs and legal fees. There are a number of worse outcomes for you (claims that you committed fraud), so it would seem the better option to reimburse the buyer in full and bank any outstanding balance, even if it requires a new unsecured loan to do so.

It's irrelevant here how the car was subsequently used after sale. Bear in mind that the "crime" committed by the buyer may be around failing to have correct insurance because he wasn't able to register the car with DVLA because of the outstanding loan agreement.

System

JustMe18 wrote: »

that’s why they are not giving money to me, but applying to my credit agreement to pay it off quicker. Just not sure what are the rights of the buyer?

You owe him £5k. Technically you owe him enough that if he is feeling particularly vindictive he could have you declared bankrupt if you don't pay.

missile

No one could be so naïve to think they could sell a car with outstanding finance?

TBagpuss

Forget the fact that the car was used for a crime.
You sold the buyer a car for £5K. The car was repossessed, so the buyer no longer has the car. Assuming it was repossessed by the bank you had the finance with, you have to pay the buyer back his £5K. If you don't, he can sue you for it.

It is possible that you might be able to pay him slightly less than £5K to take into account the fact that he had use of the car for a period, but I wouldn't bank on that if I were you.

If the buyer has to go through a solicitor to get his money back then he will incur costs which he may also claim from you.

What happened to the £5K he paid you?

If you use that to clear the finance then the bank may be able to release the car back to you, and you can return it to the buyer.