Vehicle bought with outstanding hire purchase agreement

[Subs187]

Hi

Hoping for some help on purchase of a Vehicle with outstanding hire purchase agreement.

Car was advertised on ebay by private seller and bought via bank transfer to the seller. The logbook was in sellers name. 6 months later a letter received from finance company saying vehicle was subject to hire purchase agreement. Having spoken to seller it turns out he is not the one who took out the finance it may have been the person who sold him the car as he has also received correspondence from finance company.
The seller has confirmed when he bought the car he did not know vehicle was subject to HP however whilst I do believe this, I suspect that he may have been approached by finance company and then quickly sold it.

I believe section 27 HPA 1964 would help in passing ownership if first private purchaser bought in good faith without knowledge that vehicle had hire purchase agreement.

I am not first private purchaser so does S.27 apply to second or third private purchaser in the chain?

Will it make a difference if the previous seller was not aware of hire agreement when he bought the vehicle but did know about the finance and then sold it?

Seller prepared to provide statement of truth to confirm he also bought in good faith etc.

Any templates responses to give finance company would be greatly appreciated or if decide ignore them if I have no defence or ownership rights what action can they take?


Thanks

[pt2537]

Hi

Hoping for some help on purchase of a Vehicle with outstanding hire purchase agreement.

Car was advertised on ebay by private seller and bought via bank transfer to the seller. The logbook was in sellers name. 6 months later a letter received from finance company saying vehicle was subject to hire purchase agreement. Having spoken to seller it turns out he is not the one who took out the finance it may have been the person who sold him the car as he has also received correspondence from finance company.
The seller has confirmed when he bought the car he did not know vehicle was subject to HP however whilst I do believe this, I suspect that he may have been approached by finance company and then quickly sold it.

I believe section 27 HPA 1964 would help in passing ownership if first private purchaser bought in good faith without knowledge that vehicle had hire purchase agreement.

I am not first private purchaser so does S.27 apply to second or third private purchaser in the chain?

Will it make a difference if the previous seller was not aware of hire agreement when he bought the vehicle but did know about the finance and then sold it?

Seller prepared to provide statement of truth to confirm he also bought in good faith etc.

Any templates responses to give finance company would be greatly appreciated or if decide ignore them if I have no defence or ownership rights what action can they take?


Thanks

Very difficult to answer with just the info above, but in principle yes, title would pass as long as s27 engages with the first sale/purchase.

That seems to me to be the key, as long as you can show the seller had title then in theory so do you

[Subs187]

Thanks for your reply.

Yes the V5 was in the sellers name and I have the original V5 in sellers name as he left it to me to notify dvla and when I did the bank transfer it was also into the same account as the name of the seller.

Would it be good idea to get signed statement of truth from seller to confirm he was private buyer and bought in good faith without knowledge of the car having any outstanding finance and then send that along with my response or best to send my response only covering section 27 at this stage?

[pt2537]

Thanks for your reply.

Yes the V5 was in the sellers name and I have the original V5 in sellers name as he left it to me to notify dvla and when I did the bank transfer it was also into the same account as the name of the seller.

Would it be good idea to get signed statement of truth from seller to confirm he was private buyer and bought in good faith without knowledge of the car having any outstanding finance and then send that along with my response or best to send my response only covering section 27 at this stage?

Worth doing yes