HELP! Purchased car without knowing it had outstanding finance on

D_M_E

When you checked the history, what exactly did you check?

Did you do an HPI check and, if so, had nothing indicating finance?

When you took out insurance, did they ask about any finance as the finance company could have been named on the insurance - may not be now but when I had car insurance many years ago the finance company used to be named on the policy until the final payment.

There was a case somewhere on the forums last week on similar lines and I think a section 27 or something was mentioned which gave the buyer good title to a car which still had outstanding finance on it - could be a route to take.

Ultimately, though, I agree it's the seller's resposibility to sort out and he should reimburse you what you paid and you should issue a small claims to recover your loss if he will not do anything.

Start with a letter before action and follow it through.

CRYSTAL

I’m not sure whether it would be considered a private sale or a dealer if I’m honest. I understand this now sounds ridiculous but as mentioned, lessons learned here.

waamo

CRYSTAL wrote: »

I’m not sure whether it would be considered a private sale or a dealer if I’m honest. I understand this now sounds ridiculous but as mentioned, lessons learned here.

He is a dealer but did he tell you it was a private sale? Did you get a receipt and if you did what did it say?

CRYSTAL

D_M_E wrote: »

When you checked the history, what exactly did you check?

Did you do an HPI check and, if so, had nothing indicating finance?

When you took out insurance, did they ask about any finance as the finance company could have been named on the insurance - may not be now but when I had car insurance many years ago the finance company used to be named on the policy until the final payment.

There was a case somewhere on the forums last week on similar lines and I think a section 27 or something was mentioned which gave the buyer good title to a car which still had outstanding finance on it - could be a route to take.

Ultimately, though, I agree it's the seller's resposibility to sort out and he should reimburse you what you paid and you should issue a small claims to recover your loss if he will not do anything.

Start with a letter before action and follow it through.

It was my partner who did this, with either HPI or Experian and when the check was done there was no finance showing - hence the complete shock today.

Yes when taking out insurance there was a section that asked about ownership of the vehicle and any finance - we obviously weren’t aware of this and therefore did not declare it (now that you mention it I would have thought something like that could void the insurance although Direct Line dont seem too bothered about that, hence them paying out to the finance company)

Thanks for the section 27 info - I’ll definitely look into that.

neilmcl

CRYSTAL wrote: »

It was my partner who did this, with either HPI or Experian and when the check was done there was no finance showing - hence the complete shock today.

If it was indeed an official HPI check then it may worth contacting them. They're supposed to offer some indemnity against giving wrong information else what is the point paying for a check.

wesleyad

I'd agree you have at least three routes to go down.

You can chase the dealer (if you can prove he is a dealer).

You can chasse the HPI company as they offer insurance against exactly this.

You can chase the finance company as by buying in good faith you have received good title (section 27 HP act). They should be recouping costs from named person on finance, not from you. Obviously this is made harder than usual as they already have the money.

motorguy

CRYSTAL wrote: »

I’m not sure whether it would be considered a private sale or a dealer if I’m honest. I understand this now sounds ridiculous but as mentioned, lessons learned here.

If hes repeatedly selling cars from his house, then hes a dealer. Have you googled his phone number for example?

Does he have cars there regularly that you could check for adverts for?

This could come down to it either costing you a lot of money or him a lot of money. Which would you prefer?