Car finance

[RJ6719]

Hi all, I purchased a vehicle and found out it had finance on it, going back and forward with the person that I purchased from. They lied to me numerous amount of times they cleared the finance and now stopped replying to all messages. The vehicle I have found out is on PCP and is on a 50 month deal and around 39 months of this finance have been done and 11 months of finance remaining. Anyone know where I stand? I am considering to email the finance company but scared they may repossess the vehicle.

Thanks

[R0b]

Hi

Are you wanting to hand the car back?

[RJ6719]

Hi rob,

I'm wanting to keep the vehicle.

[R0b]

Then I don't see any reason for you to contact the finance company. Sadly, you don't have any rights to keep the car if the original finance company is seeking to repossess the car since it belongs to them, nor will you obtain any ownership of the vehicle if you choose to purchase it at the end of the hire period, so your best bet is handing it back at the end of the period or throw good money after bad if the original creditor chooses to sue you at a later date as you will lose.

If, however, the original creditor does discover and demands the car back, you can sue your current lender under the Consumer Rights Act 2015 for breach of its obligation to ensure the car is free from any encumbrances. Best off doing that sooner than later but that's a decision for you to make, otherwise you may not be able to claim any compensation. Otherwise, if you are happy with the car, carry on as normal and take the risk.

[RJ6719]

Hi rob,

I have purchased this car and after Found out it's on finance. I have read many forums on here where people have used section 27 and managed to get the vehicle free from finance and the company chases the person who took out the finance rather than the vehicle itself. Is this not the case?

[R0b]

Sorry, I have misread your post thinking you took the car out on finance as well. In that case, yes Section 27 of the Hire Purchase Act 1964 will apply. No need to contact the finance company but if they did find out the onus is on the HP company to prove you knew the car was on finance before you purchased it.

Once thing that could potentially cause an issue is if the finance co. reports the vehicle as stolen or if you come to sell the car at a later date if may have a HP marker which may put off buyers if they run checks. So you could contact the finance company asking for the marker to be removed, but be prepared for hassle and potentially their attempt to recover the car from you.

[RJ6719]

So as Im a innocent buyer and purchased it without knowing it's on finance, is the best thing to do to contact the finance company and tell them the situation and explain to them the section 27 hire purchase act? As the person I have purchased it from isn't replying to messages now and I really need to speak with the finance company to get the finance marker removed and chase the original person for the funds as I didn't know it had finance on the vehicle.

[R0b]

That is one option yes, but not your only option as I mentioned in my last post. You would be wise to back up those messages between you and the seller in case you need them in the future.

[RJ6719]

Yeah I've saved everything, photos of person and messages and photos of it being advertised etc. got the proof of payment. The vehicles finance has been taken out with the main dealer themselves so I'm hoping they are able to sort this out and get the finance marker removed as it's really stressing me out. I have just emailed them to ask for advice.

[RJ6719]

Hi Rob,

After chasing and chasing I finally have got the questionaire to fill in today. I'm looking to fill it in and send it back by Monday, most questions are how I paid, how much I paid, bank statement, where I work, current insurance policy, V5 proof. Should I add a additional paper with the info explaining I know my rights and section 27 of the law or do you think I should just fill in the questionaire and send it back?