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Car I have bought has outstanding finance 😬

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  • Car I have bought has outstanding finance 😬

    Hello Guys and Girls,
    I have recently purchased a car that has outstanding finance from an independent one man band type trader. The previous owner is the original person named on the HP agreement. I brought the car as Spares or Repairs Due to the number of mechanical electrical and cosmetic issues which were present at the time of purchase. The trader provided me a HPI check which showed everything as clear. Where do I legally stand? I have provided black horse motor finance with all the evidence in relation to the purchase of the car and I am awaiting a response from them.

    Thank you.
    Tags: None

  • #2
    Have BlackHorse written to you about the outstanding HP ?
    Do you have a copy of the HPI check you were given by the Trader ? ( presumably you've sent a copy of that to BlackHorse too?)
    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

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    Comment


    • #3
      I've only spoken to black horse via the phone and sent there complaints team an email (No Reply). This included all details of the purchase including the sellers information HPI check and pictures of the damage to the car aswell as screen shots of my conversation with the seller.

      Comment


      • #4
        How did you first find out there was outstanding HP on the car?

        “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

        Received a Court Claim? Read >>>>> First Steps

        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Find Solicitors offering fixed fees on our sister site - JustBeagle.com

        Comment


        • #5
          I put the car up for sale and a potential buyer highlighted it.

          Comment


          • #6
            As you bought the car in good faith without any knowledge of the HP you should have good title to it ( section 27 of the Hire Purchase Act ) so you need to wait for BlackHorse to come back to confirm they are removing the finance from the vehicle so it shows as clear on an HPI check so you can sell it. It sounds like you have done the right things to deal with it so far so see what they come back with.



            “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

            Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

            Received a Court Claim? Read >>>>> First Steps

            If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

            Find Solicitors offering fixed fees on our sister site - JustBeagle.com

            Comment


            • #7
              I'm not sure how they work but seemingly it's a long difficult process. They haven't specifically asked for any information or given any confirmation of there process.

              Comment


              • #8
                First of all its illegal to sell a car with outstanding finance, let alone sell a car, that legally, does not belong to you. The first port of call is to provide evidence that you were an innocent party in this which you have done. Some HPI checks do not show whether there is outstanding finance or not, did the HPI clearly state this? More of a problem is that you relied upon this HPI check and did not carry out your own, you did nothing to mitigate potential losses and the courts wont look kindly at this.


                The information I supply is provided for informational purposes only and, should not be construed as legal advice.

                Comment


                • #9
                  I brought the car in good faith and trusted a trade seller. My mistake..... Does this mean I should lose £10000+? The HPI check showed the car as clear of finance and stated it had been checked against 40+ databases.

                  Comment


                  • #10
                    This is section 27 for reference

                    27 Protection of purchasers of motor vehicles.

                    (1)This section applies where a motor vehicle has been bailed or (in Scotland) hired under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.

                    (2)Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement”) that disposition shall have effect as if the creditor’s title to the vehicle has been vested in the debtor immediately before that disposition.

                    (3)Where the person to whom the disposition referred to in subsection (1) above is made (the “original purchaser”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition (the “first private purchaser”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immediately before he disposed of it to the original purchaser.

                    (4)Where, in a case within subsection (3) above—

                    (a)the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment or hiring under a hire-purchase agreement, and

                    (b)the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,

                    the disposition referred to in paragraph (b) above (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall as well as the disposition referred to in paragraph (a) above, have effect as mentioned in sub-section (3) above.

                    (5)The preceding provisions of this section apply—

                    (a)notwithstanding anything in [F2section 21 of the M1Sale of Goods Act 1979] (sale of goods by a person not the owner), but

                    (b)without prejudice to the provisions of the Factors Acts (as defined by [F3section 61(1) of the said Act of 1979] or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.

                    (6)Nothing in this section shall exonerate the debtor from any liability (whether criminal or civil) to which he would be subject apart from this section; and, in a case where the debtor disposes of the motor vehicle to a trade or finance purchaser, nothing in this section shall exonerate—

                    (a)that trade or finance purchaser, or

                    (b)any other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,

                    from any liability (whether criminal of civil) to which he would be subject apart from this section.]
                    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

                    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                    Received a Court Claim? Read >>>>> First Steps

                    If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

                    Find Solicitors offering fixed fees on our sister site - JustBeagle.com

                    Comment


                    • #11
                      I have read this bus struggling to interpret it. I may seek legal advise and ask a solicitor to draft a legal letter stating the above. Not sure it this would be premature?

                      Comment


                      • #12
                        Did the HPI check specifically state there was no outstanding finance??

                        Any chance you could post a copy of the HPI, obviously redact any personal info.
                        The information I supply is provided for informational purposes only and, should not be construed as legal advice.

                        Comment


                        • #13
                          So the HPI report states "Finance: NO. Finance details have been checked with over 40 finance institutions"

                          Comment


                          • #14
                            I would wait for BlackHorse to come back to you for now. You have sent them all the information as a complaint ? If so, they will have 8 weeks to come back with a final resolution to the matter - and they should keep you updated with an interim response within 4. You haven't actually said how long ago you sent them the letter ? Have you followed up with a phone call to ensure they have received it and ask on timescales/progress ? Personally, if it was only an email, I'd get it sent as a hardcopy, by recorded post so there is no issue as to receipt.

                            It could be a mistake in that they didn't remove the finance marker after the HP concluded, or could be the car was returned to the trader due to the faults after purchase on HP and the HP wasn't cancelled properly etc.

                            Tagging a couple of guys who might have something a bit more pro-active you can do.
                            R0b des8
                            “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

                            Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                            Received a Court Claim? Read >>>>> First Steps

                            If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

                            Find Solicitors offering fixed fees on our sister site - JustBeagle.com

                            Comment


                            • #15
                              It looks like that HPI report is useless, not sure why it would only check a minimum number.

                              It'll be a case of you proving you were an innocent buyer, which will quite likely give you legal ownership of the vehicle and the finance company will pursue the debt with the trader unless he proves he was an innocent buyer too. The only thing that will go in your detriment will be the fact you never HPI checked it yourself and just relied upon someone else doing it.
                              The information I supply is provided for informational purposes only and, should not be construed as legal advice.

                              Comment

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