Purchased a car, Moneybarn threatening to repossess due to previous owner's outstanding finance

Herongull

According to Citizens Advice you have to be the 1st person to buy from the person who took out finance for the clause in the HP Act to apply https://www.citizensadvice.org.uk/consumer/buying-or-repairing-a-car/the-car-you-bought-is-still-on-hire-purchase/

If this is correct, the fact that you were an innocent buyer who didn't know about the HP is irrelevant. What matters is whether Mr X was an innocent buyer who didn't know about the HP and all you've got his word for it. The fact that he sold it on soon after buying looks suspicious.

reason2

Herongull wrote: »

According to Citizens Advice you have to be the 1st person to buy from the person who took out finance for the clause in the HP Act to apply https://www.citizensadvice.org.uk/consumer/buying-or-repairing-a-car/the-car-you-bought-is-still-on-hire-purchase/

If this is correct, the fact that you were an innocent buyer who didn't know about the HP is irrelevant. What matters is whether Mr X was an innocent buyer who didn't know about the HP and all you've got his word for it. The fact that he sold it on soon after buying looks suspicious.

But, he could have been an innocent buyer, then found out about the finance later so he still would have obtained title to the car before selling it.

bobbymotors

Yes it applies.

If you are a member of the public that genuinely and unknowingly buys a car in good faith an that car has HP on it you will get title to the car. A lot of faffing around, but you will get title.

Now, if a finance co gets hold of you and says 'thats our car, we want it back' and you give it to them then of course you will lose it.

Moneybarn really should know better....and they do, this sort of thing happens to them several times a week i expect, they are just chancing their arm.

Been there, done that, sold 5000 cars in my life.

Herongull

reason2 wrote: »

But, he could have been an innocent buyer, then found out about the finance later so he still would have obtained title to the car before selling it.

Yes it is easily possible but we don't know his true situation so at present it is an unknown risk factor.

Would Mr X be prepared to go to court over it? Now that he has got the car off his hands he may not be prepared to put much effort into sorting out his title and protecting the car from repossession.

Legal Advice is needed as this is a more complicated situation than the OP were the 1st buyer from the person with the HP.

motorguy

bobbymotors wrote: »

Yes it applies.

If you are a member of the public that genuinely and unknowingly buys a car in good faith an that car has HP on it you will get title to the car. A lot of faffing around, but you will get title.

Now, if a finance co gets hold of you and says 'thats our car, we want it back' and you give it to them then of course you will lose it.

Moneybarn really should know better....and they do, this sort of thing happens to them several times a week i expect, they are just chancing their arm.

Been there, done that, sold 5000 cars in my life.

+1

They probably get a percentage of people who will just hand the car over, so its worth their while attempting it for the sake of a letter or two.

lee1972

bobbymotors wrote: »

Wrong, wrong, wrong.

This comes up on here periodically.

If you buy a car in good faith and that car has outstanding finance on it then you, as the 'innocent purchaser' will ultimately get good title to the car.

http://www.legislation.gov.uk/ukpga/1964/53/section/27

Less likely to happen if the car is bought from a private party. However, if the buyer gets on the case asap the there's a good chance that the buyer will come out on top as stated above.

lee1972

reason2 wrote: »

"The car belongs to Moneybarn. The OP has a case against the seller but Moneybarn legally own the car"

you wrote this as fact when it actually may not be the case

Still not advice...

Mr_Singleton

bobbymotors wrote: »

If you buy a car in good faith and that car has outstanding finance on it then you, as the 'innocent purchaser' will ultimately get good title to the car.

You’ll now never be able to sell the car on.

unholyangel

Mr_Singleton wrote: »

You’ll now never be able to sell the car on.

Why would that be?

Mr_Singleton

unholyangel wrote: »

Why would that be?

The finance company that had their property stolen would still have a financial interest in the vehicle. If the OP wanted to sell they would be legally required to tell any purchaser of the outstanding finance despite having title.... one would assume.