Sold car with outstanding finance on?

[winslo]

Hi i bought a car a few weeks ago from a relative of a friend. As always i did my checks on the car. I have an account with HPI, but my internet access was down so got a friend at a dealer to run me the hpi check. It came back as clear, although it said there was a finance agreement on the car which had ended the previous month. This is normal, as sometimes takes a while to come off the HPI reports. When i bought the car i confirmed this with the lady, that the agreement had ended, which she told me it had, and had a new 11 plate mini on her driveway!So i sold the car last week and received a phone call last night.This car you sold me has finance on it? To which i replied no it didnt.....The guy then went on to tell me who the company was that there was £1600 outstanding,and that the agreement started on the 1.2.07 for 48 months, which would tie in to the agreement ending around the time i bought the car.....Normally i would be protected by my HPI account, but as my friends garage did the check and they didnt buy the car then im not!Never had this happen to me before........any ideas how to go about it?First thing is to go and see the lady i bought the car from, but then???ThanksRichard

[Dragons Dennis]

No, first thing is to establish if there is actually any finance on the car. Only then can you make an informed decision, so you need to find out who teh finance company is and call them directly yourself. IF and only IF there is still finance on it, you have two options. Pay the outstanding finance and try to recover the cost from the woman you bought the car from, or take the car back and then try to recover your losses.

 

Sounds to me like a mistake and I have a feeling you will find the finance is clear.

[winslo]

Unfortunately not a mistake, i spoke to the company and there is £1642 outstanding. I asked why the hpi showed the finance as ended, they have said that the TERM has ended but there is still money owing!Ive tried ringin the lady but have had no answer, i will be calling in to see her tonight after i finish up at work.I will give her the opportunity to pay the finance company and if she doesnt i will contact the police, as it is fraud, and also explain that i will be claiming the money back through county court and she will get a CCJ on her name so she cant get credit for 6 years + etc....not to mention what ever the police have to say!Failing that i wil pay the finance off so the car is clear, and then claim the money back through the county courts, as i dont want to be seen to be selling dodgey cars! The guy has been understandning and hopefully will have it resolved in the next few daysAny other advice guys?Thanks

[Dragons Dennis]

EDIT

 

Blast. tried correcting spelling and lost the whole post now!

Edited May 13, 2011 by Dragons Dennis

[Jeepstar]

Firstly don't panic. The law changed around 3 or 4 years ago regarding ownership on cars with finance owing from the previous owner. The finance company CANNOT remove the car from you or whoever you sold it to, PROVIDING you weren't aware of any finance being owed at the time of sale.

 

You need to phone and send a recorded letter to the finance company stating you bought the car on 'date' from the owner. She assured you no finance was due on it. They can now only pursue their outstanding amount with the person they financed. If they try and tell you different go to citizens advice who will give you the legislation which tells you all that I say.

 

There is also a system you can use to remove it from the HPi register. CAB will be able to help you there.

 

Good luck.

[winslo]

I Will send them a letter out today explaining the situation.Ive since sold the car on, and im trying to resolve the issue for the new owner since it was me who bought the car in the first place! Ive offered him his money back to return the car but doesnt want to as he likes it, and the price he paid he wouldnt get a replacement car the same.I dont understand it, ive bought plenty of cars at the end of finance agreements and they show that the agreement term has ended, but just takes a little while for the finance company to remove the marker from the HPI.In this case apparently it looks as if the 'term' 48months has ended but the lady must not of being paying her payments, hence why its still on. I asked her straight, is the finance all finished? To which she replied yes and that she now had a new mini as she couldnt afford to pay for 2 cars at once!Ive tried contacting her but she sends all my calls to voicemail, ive sent her a txt saying that if i dont hear from her by 5pm tonight i will be contacting the police and reporting her for fraud/taking money by deception etc....I just dont understand it.......why would someone want to do that! Do they really think they will get away with it?Regarding the CCJ i mentioned earlier, im aware that if the court rule that she owes the money she has 1 month to pay it, and if she doesnt then she will have the CCJ against her name for 6 years.I'll see what happens in the next few days!Winslo

[millie111]

Hi all not sure wether im in the right place but wanted to know if any one has any imformation on this.

 

I brought a 2nd hand car of a mate for £300.00 and he said he would get it threw the mot for me i paid threw the bank so have statments.Now he canniont afford to pay for the mot to be done and it is still in the grarage.The mechanic has told me it is not worth £300.00 and there is a lot of work to be done on it.Th mate has now moved address but i have been texing and phoning him he did say he would put the money back in my account.Now the money hasent gone in and he is not answering his calls or texts.Also he has the log book and everything as i thought about paying the mechanic myself to get the things done but i dont even have the keys etc What couyld i do could the police do anything?