Car bought with outstanding finance.

[mooman900]

My Situation:

I wanted to be a part time motor trader so I started a business registered with hmrc and got some motor trade insurance. I sold my car for the capital and bought a cheaper car to run around in off ebay.

It turns out that this car has outstanding finance when I did a HPi check. I didn't do the check before I bought the vehicle as the advert said it was HPi clear. I contacted the finance company (Black Horse)stated on the HPi check and they informed me that they do hold title of the car due to there being outstanding finance on the vehicle. They asked me to fill in a questionaire to determine whether or not I was an innocent purchaser. I filled out the questionaire honestly. There was a question on there asking if I had anything to do with the motor trade and I said YES. I then received a letter saying that due to me being involved in the motor trade I was not an innocent purchaser and I should have known. After some time I then received a letter from the finance company saying they want £3600 or they will repossess the car in 14 days. I called them up again and explained the situation and it turns out they had lost all of the info I had given them and I would need to fill out another questionaire which they will send out to me in the post. This never came. I called up 3 more times and each time the questionanire never came. I then called and asked for more information and asked to speak to the legal department. The telephone operator said I could not speak them but he will do for me in which the reply was "I was not an interest to them and that the car would not be repossessed and will stay in my possession. They are currently persuing payment from the person named on the hire purchase agreement".

 

Although this eases my mind that the car will not be snatched back and that I don't have to pay anything the car still belongs to the finance company and is still registered on the HPi database until the person I bought the car off pays his debt.

 

I believe that this person has not paid anything off of the original debt and it is possible that he never will.

 

Should I hire a solicitor to see if I can get anywhere with this?

Would a solicitor be able to do anything about this?

 

Or I am just doomed to keep hold of this car forever?

 

I would be grateful to hear anyones stories or advice that they have to offer.

 

Thanks

 

Matt

[stevo7790]

Mooman,

 

I have a friend in the same predicament as yourself.

 

Although not a trade purchase, he bought his car privately and did a basic hpi check which came back clear.

 

He tried to sell the car ( Ford Fiesta ST ) and was told it had outstanding finance, also through Blackhorse.

 

He has been told like you that he can keep the car, but can never sell it.

 

His options were to keep it or to take the person he bought it off to court to get his money back. Then the person he sue'd would have to sue the person he bought the car off... see where I am going here.

 

It turns out with this car that Blackhorse know the original owner and he had not paid a penny from new, yet had not bothered to chase for the money.

[mooman900]

The 3 year hire purchase agreement that had been taken out on it has now finished and they haven't paid a penny either. It seems like Blackhorse are more bothered about scaring innocent people rather than trying to chase down the money they are owed.

[Gaston Grimsdyke]

As you are a trader, you don't have title irrespective of how innocent you are. It's surprising that BH aren't trying to recover the vehicle from you, but if they elect not to do so then that's up to them.

[donkeyboy71]

hello

i brought a car from a friend of a good friend about 8 months ago.

today i received a letter from carlyle finance in cardiff saying they are the owner as the person who i brought it from had no right to sell it. they have given me a questionaire to fill in too. am i in the same boat? i know the consumer rights act says something along the lines of that if you have innocently purchased a vehicle in a genuine capacity then you are deemed to have 'good title' to the vehicle?

does anyone have any more info on this as i am a little worrled?

thanks in advance

[Gaston Grimsdyke]

Your position is different if you are not a motor trader. The key is what type of agreement Carlyle had with the seller; if it was hire purchase or conditional sale, you are probably ok. If it was hire or lease, you have a problem. Have they told you what type of agreement it is?

[jacketpotato]

The relevant law is here - http://www.legislation.gov.uk/ukpga/1964/53/section/27. The definition of a private purchaser is here - http://www.legislation.gov.uk/ukpga/1964/53/section/29. If you were caryong on a car business AT THE TIME YOU BOUGHT THE CAR then you are not protected against prior HPs.

[donkeyboy71]

well months down the line i am due in court in february if i cannot 'prove' i purchased the vehicle despite showing loan statements, bank forms showing purpose of loan, statements from witnesses etc.

what to do next? any help or advice would be greatly accepted!