Where do I stand legally with outstanding finance on my car?
18 August 2004, 07:20 PM
#1
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Where do I stand legally with outstanding finance on my car?
Got this letter today....
Its for my Calibra, which I have owned for over 2 years now.
I bought it in a private sale from some woman whos details I cant remember now.
She hadnt owned the car for long, and the V5 wasnt in her name, it was still in the name of the garage she had bought it from.
She said she would send it on when her own copy arrived, which she never did. I sent away and got it in my own name, and have had no problems for the last few years.
Bear in mind, the car was crashed by my sister a few weeks ago (not terminal I dont think, but about 1k`s worth of damage to the front end, the car is maybe worth 2k) and is in a semi-stripped state in my garage just now.
Whats likely to happen?
Thanks.
agreement no xxxxxx
Used cars up to 5 years old (my cars reg no here)
Dear sir,
We believe you have obtained the goods shown above which belong to us under a hire purchase agreement. Our customer does not have the right to dispose of the goods until they are paid for in full.
Please complete and return the enclosed questionairre blah blah blah....
....In the meantime, do not dispose of the good until our investigations are complete.
Used cars up to 5 years old (my cars reg no here)
Dear sir,
We believe you have obtained the goods shown above which belong to us under a hire purchase agreement. Our customer does not have the right to dispose of the goods until they are paid for in full.
Please complete and return the enclosed questionairre blah blah blah....
....In the meantime, do not dispose of the good until our investigations are complete.
Its for my Calibra, which I have owned for over 2 years now.
I bought it in a private sale from some woman whos details I cant remember now.
She hadnt owned the car for long, and the V5 wasnt in her name, it was still in the name of the garage she had bought it from.
She said she would send it on when her own copy arrived, which she never did. I sent away and got it in my own name, and have had no problems for the last few years.
Bear in mind, the car was crashed by my sister a few weeks ago (not terminal I dont think, but about 1k`s worth of damage to the front end, the car is maybe worth 2k) and is in a semi-stripped state in my garage just now.
Whats likely to happen?
Thanks.
18 August 2004, 07:26 PM
#2
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Legally, unless you HPI'd it (I'm guessing you didn't), I suspect you don't have a leg to stand on. The car still belongs to the previous keepers finance company.
Alarms bells would have been ringing for me if the V5 wasn't in her name. You should have walked away. [cue sound of door being bolted when the horse is long gone]
Edited to answer your question. After their "investigations" are complete, they will probably want to take the car away. When they discover the car is in pieces, they may either still take it away, or expect you to get it repaired and then take it away. They may be willing to bargain with the car being mid-repair.
Alarms bells would have been ringing for me if the V5 wasn't in her name. You should have walked away. [cue sound of door being bolted when the horse is long gone]
Edited to answer your question. After their "investigations" are complete, they will probably want to take the car away. When they discover the car is in pieces, they may either still take it away, or expect you to get it repaired and then take it away. They may be willing to bargain with the car being mid-repair.
Last edited by Jerome; 18 August 2004 at 07:29 PM.
18 August 2004, 07:28 PM
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When you bought it, did the HPI check reveal anything? Often they guarantee that the details are correct.
Was the dealer a main dealer? I assume it's her that owes the finance rather than the dealers though?
They may repocess the car (they do own it after all) but givent he lack of value they may write it off but that depends on the company and the amount owed.
Was the dealer a main dealer? I assume it's her that owes the finance rather than the dealers though?
They may repocess the car (they do own it after all) but givent he lack of value they may write it off but that depends on the company and the amount owed.
18 August 2004, 07:29 PM
#4
dont want to be the bearer of bad news mate, grease yourself up 
If there was outstanding finance on the car, you are liable to the remaining money. Surprising how long its taken for them to track the car down though
If there was outstanding finance on the car, you are liable to the remaining money. Surprising how long its taken for them to track the car down though
18 August 2004, 07:35 PM
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When I bought it, people said green cars were unlucky.
Rubbish i thought.
4 days later I was run off the road by someone who didnt look where they were going.
A few minor niggles over the years, then I loan it to my sister who crashed it 20 minutes later,
now this.
Typicall.
And no, I didnt HPI it.
Rubbish i thought.
4 days later I was run off the road by someone who didnt look where they were going.
A few minor niggles over the years, then I loan it to my sister who crashed it 20 minutes later,
now this.
Typicall.
And no, I didnt HPI it.
18 August 2004, 11:20 PM
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You are liable- as the finance is on the car not the person. The fincance company have a legal claim to it until all outstanding $ is paid up
Even if you had HPi'd it, it wouldnt have shown up in her name- so the HPI guarentee wouldnt apply.
When i bought my beemer it wasnt registered in his name and hpi told me it was at my own risk to proceed with the purchase.
I would NEVER buy a car without hpi'ing it now
Even if you had HPi'd it, it wouldnt have shown up in her name- so the HPI guarentee wouldnt apply.
When i bought my beemer it wasnt registered in his name and hpi told me it was at my own risk to proceed with the purchase.
I would NEVER buy a car without hpi'ing it now
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19 August 2004, 09:16 AM
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When I done a HPI check on current car, I was told they can't check outstanding finance but if I get the seller to right on the reciept that there is no outstanding fiance owing on the car, then sign and date it that no finance companies can come after me for it.
19 August 2004, 09:30 AM
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Did think the finance would be your worry, I know for a fact they are quite within their rights to come after the car, which presuming its current state and value you wouldnt be too miffed (be glad u havent forked out 10k for the car 
) if they took it? Im sure once they have taken the goods back you are then left int he clear and the outstanding value of debt will then be chased by the original woman owner....
Unlucky
) if they took it? Im sure once they have taken the goods back you are then left int he clear and the outstanding value of debt will then be chased by the original woman owner.... Unlucky
19 August 2004, 09:30 AM
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I see alot of scaremongering on this thread.
Seen a few respossessions, but never the "innocent" party owing the sellers finance.
By Law, the finince company (if its HP) retain ownership of the car
By Law, the seller remains liable for the outstanding finance, as the finance agreement is a contract between her and the finance company.
What's all this about the finance stays with the car?
Write and say you bought it in good faith, tell them where it is, and suggest they come and collect it.
Say goodbye to £1000 (value less repair costs) and chalk it down to experience.
D
Seen a few respossessions, but never the "innocent" party owing the sellers finance.
By Law, the finince company (if its HP) retain ownership of the car
By Law, the seller remains liable for the outstanding finance, as the finance agreement is a contract between her and the finance company.
What's all this about the finance stays with the car?
Write and say you bought it in good faith, tell them where it is, and suggest they come and collect it.
Say goodbye to £1000 (value less repair costs) and chalk it down to experience.
D
19 August 2004, 09:32 AM
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as Diablo said, thats exactly how I thought the lay of the land was.....
sounds like a lucky escape going of the value of the car, like I say be grateful u didnt spend 10k on a car and have the problem, that would be AWFUL
sounds like a lucky escape going of the value of the car, like I say be grateful u didnt spend 10k on a car and have the problem, that would be AWFUL
19 August 2004, 10:39 AM
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Originally Posted by suprabeast
so freak you paid 30 odd quid to be told "buy at your own risk"
hardly worth the money is it
hardly worth the money is it
The rest of the info from hpi was spot on
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