Purchased a car, Didnt know it had Outstanding Finance

AshTheLegend · 7 March 2017 at 3:49AM

Hi all,

New member here but I've been reading this forum for years.

I've bought a car a month ago. The seller informed me over the phone that the car was HPI clear and said he had a copy of the report. I forgot to ask about it when actually collecting the car.

A friend of mine reminded me about the HPI status (if it's damage repaired etc). It kept bugging me so I finally checked it. Turns out the car has outstanding finance with FCE Bank. The agreement type is 'conditional', whatever that means.

What I want to know is, where do I stand with this. I've come across various posts about innocent buyers and good faith etc. I haven't yet phoned them up. I want to know what to expect. Has anyone ever gone through this before?

Thanks
Ash

AshTheLegend · 7 March 2017 at 3:58AM

Edit: sorry to double post, but just to add, the car was bought privately. The previous sellers phone is dead

soolin · 7 March 2017 at 9:37AM

There will be people with more knowledge around later, so do please come back and check the thread.

I'm probably out of date but my understanding is that accidentally or not , you have bought a car that the seller did not have permission to sell, as it was not technically his. There is a good chance that the company who have an interest in the car may seek to repossess it from you, like in this instance:

https://www.theguardian.com/money/2014/aug/04/car-buying-private-sale-protection-hpi-check

Pending better responses from people who understand better than I do, start collecting as much info as you can about the seller, you will need their name and address your receipt showing what you paid etc. Keep this safe as you may need it later.

Stevie_Palimo · 7 March 2017 at 9:48AM

If the finance Company decide to come a knocking and seek to collect what is outstanding you have two choices here either pay them out what is owed or face having the car taken away, Not having checked the cars status is no defence against anything owed.

Yes it is not nice but anytime a car is bought it is worth while checking that it is indeed HPI clear, I have even run this on a car for my OH that I first got her for a £1000.00 just in case there was log book loans on it to.

You would possibly have one port of call here and that would be to sue the seller but you need the full details of them and this will cost you money to do but there is no guarantee that you will see anything back.

DoaM · 7 March 2017 at 10:24AM

How did YOU pay for the car?

It's a very tenuous possibility, but ... if you took out finance to pay for it, and that finance can be directly attributable to the purchase (i.e. the finance company were aware that the loan was to pay for THAT car), then you may have a Section 75 claim against your own finance company.

But as I said, it's a very tenuous possibility.

soolin · 7 March 2017 at 10:30AM

Assuming the OP comes back can you confirm that you have all the correct paper work for the car and have sent off your new owner slip etc ?

neilmcl · 7 March 2017 at 10:32AM

The lesson as ever is do not believe a word of that a private seller tells you. Do you own research, get your own HPI prior to buying the car.

shaun_from_Africa · 7 March 2017 at 11:07AM

Stevie_Palimo wrote: »

If the finance Company decide to come a knocking and seek to collect what is outstanding you have two choices here either pay them out what is owed or face having the car taken away, Not having checked the cars status is no defence against anything owed.

If a private buyer purchases a vehicle that has outstanding hire purchase finance on it, providing thst the buyer didn't know or suspect about the finance, they still retain legal ownership of that vehicle.
The only comeback the finance company have is against the person who took out the HP.
This is explained in the link provided by soolin.

Stevie_Palimo · 7 March 2017 at 11:47AM

Oh I am sorry shaun from Africa as usual is right again and nobody need ever do a hpi check again when buying a car, I think I'll pass on that thanks.

AshTheLegend · 7 March 2017 at 12:28PM

Yeah, I've already had the logbook come back in my name. I've also got the service history/owners book and both keys etc.

I've also got a receipt. The receipt is one of those AA car sellers contracts. I would post the link but as a new member, it doesn't let me. If you google 'AA car sellers contract', it's the first one that comes up.

I've also still got a copy of the advert printed off.

I'm just nervous about phoning the finance company and wanted to know what to expect

MikeWhite · 7 March 2017 at 1:50PM

soolin wrote: »

There will be people with more knowledge around later, so do please come back and check the thread.

I'm probably out of date but my understanding is that accidentally or not , you have bought a car that the seller did not have permission to sell, as it was not technically his. There is a good chance that the company who have an interest in the car may seek to repossess it from you, like in this instance:

https://www.theguardian.com/money/2014/aug/04/car-buying-private-sale-protection-hpi-check

Pending better responses from people who understand better than I do, start collecting as much info as you can about the seller, you will need their name and address your receipt showing what you paid etc. Keep this safe as you may need it later.

And if you read the update to the article:

"Following our initial report, Guy Skipwith, of Citizens Advice Specialist Support, has contacted us to say that our advice in his view, is not entirely correct. "Where a motor vehicle is subject to an HP or conditional sale agreement, while the vendor does not own it and has no right to sell it, a private purchaser who buys the car in good faith without notice of the HP or conditional sale agreement obtains good title to it. He does so under section 27 of the Hire Purchase Act 1964."

I'd do a check but it seems it's not obligatory.

Purchased a car, Didnt know it had Outstanding Finance

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