Outstanding credit on a car


C

Chris

Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).

Does anyone know whether there is any safe way to buy such a vehicle? Is
there some way in which the seller can prove that what he wishes to charge
me for the vehicle is the total outstanding finance, so that I can pay off
the finance company directly?

The seller calims that he is unable to raise the capital to pay off the
finance company before receiving payment from myself.

Sounds dodgy, so I'll probably just walk away... but thought I'd see
whether anyone had come across anything similar and not been burnt?


Cheers,

Chris
 
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S

Sam Smith

Chris said:
Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).

Does anyone know whether there is any safe way to buy such a vehicle? Is
I think the RAC offer an online service to check the finance left on the
car. Whatever happens do not go ahead with it until you have 100% certainty
on the amount outstanding.
 
R

Richard Parkin

Chris said:
Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).

Does anyone know whether there is any safe way to buy such a vehicle? Is
there some way in which the seller can prove that what he wishes to charge
me for the vehicle is the total outstanding finance, so that I can pay off
the finance company directly?

The seller calims that he is unable to raise the capital to pay off the
finance company before receiving payment from myself.

Sounds dodgy, so I'll probably just walk away... but thought I'd see
whether anyone had come across anything similar and not been burnt?
I was told once by an AA bloke that if the HP has not been cleared then the
seller of the vehicle does not have legal title to it. I suspect this means
any sale contract would not be valid...
 
A

Adrian Smith

Chris said:
Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).

Does anyone know whether there is any safe way to buy such a vehicle? Is
there some way in which the seller can prove that what he wishes to charge
me for the vehicle is the total outstanding finance, so that I can pay off
the finance company directly?

The seller calims that he is unable to raise the capital to pay off the
finance company before receiving payment from myself.

Sounds dodgy, so I'll probably just walk away... but thought I'd see
whether anyone had come across anything similar and not been burnt?


Cheers,

Chris
If you really want the car, call the finance company and ask them what
procedure would satisfy them whilst protecting yourself.

Adrian.
 
A

Alan

Chris said:
Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).

Does anyone know whether there is any safe way to buy such a vehicle? Is
there some way in which the seller can prove that what he wishes to charge
me for the vehicle is the total outstanding finance, so that I can pay off
the finance company directly?

The seller calims that he is unable to raise the capital to pay off the
finance company before receiving payment from myself.

Sounds dodgy, so I'll probably just walk away... but thought I'd see
whether anyone had come across anything similar and not been burnt?


Cheers,

Chris
Try here

http://www.hpicheck.com

Alan
 
C

Chris

If you really want the car, call the finance company and ask them what
procedure would satisfy them whilst protecting yourself.

Adrian.
That's what we're trying to assertain at the moment; I suspect the finance
company will get authorization from the seller to be able to tell me
what's owed on the car. I could then pay the finance company (they'll
accept money from anywhere!) and enter into an agreement with the seller
so that in doing so I've bought the car from him, but really it's all in
the wrong order - since he shouldn't be able to sell until the finance is
cleared. I don't want a situation where I agree to pay the finance then he
agrees to sell me the car subsequently (once he's entitled to) for a
nominal fee. Yuk.

The ideal solution from my point of view would be that the finance company
transfers the hire purchase agreement over to me (and the seller hands
over the keys) then I pay off the finance company and legally own the car.
I suspect that the finance company won't be too pleased with this since
they're then effectively selling me the car (without even seeing it in the
past two years).

The seller is currently getting in touch with the finance company to see
what they're willing to do. Perhaps he can instruct the finance company to
transfer the ownership of the car to me once the finance is paid, but
whats then to stop him telling them not to whilst the money clears.



I suspect it's in the finance companies interests to keep the seller
locked into whatever agreement he signed, so there's not going to be a
safe way to purchase the car.




Back to autotrader!


Chris
 
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T

Tim

Assuming it's a private purchase you *do* get good
title to the car even if there is outstanding HP owed
on it. The legislation was changed many years ago (in
the 70s ?) so that private purchases of vehicles made
'in good faith' give title to the purchaser regardless...
Goody! I think I might sell *your* car, then!

I'll sell it to my mate. I won't tell him it's yours, let him
think it really is mine, then he's buying "in good faith".

Pity you'll lose the title to your own car, though - eh?!
 
C

Colin Forrester

The legislation was
changed many years ago (in the 70s ?) so that private purchases of
vehicles made 'in good faith' give title to the purchaser regardless
of any outstanding HP.
And a link to that legislation would be helpful.
 
U

usenet

In uk.finance Chris said:
Hi,

Have come across a car that I would like to purchase, but it has
outstanding credit against it (I believe a Hire Purchase agreement).
It's a pity you know that.

Assuming it's a private purchase you *do* get good title to the car
even if there is outstanding HP owed on it. The legislation was
changed many years ago (in the 70s ?) so that private purchases of
vehicles made 'in good faith' give title to the purchaser regardless
of any outstanding HP.

However, since you appear to know somehow that there is outstanding HP
on the vehicle you are not buying 'in good faith' as I understand it.

HPI checks are a rip off!
 
T

Tim

I specifically said "if there is outstanding HP"...
Actually, you said: " **EVEN IF** there is outstanding HP...".

You even went on to say: "...give title to the
purchaser **regardless** of any outstanding HP."

In other words, you said that title passes
properly *whether-or-not* HP existed. Are
you now going back on what you actually said?
 
U

usenet

In uk.finance Tim said:
Goody! I think I might sell *your* car, then!

I'll sell it to my mate. I won't tell him it's yours, let him
think it really is mine, then he's buying "in good faith".

Pity you'll lose the title to your own car, though - eh?!
I specifically said "if there is outstanding HP", the legislation is
specifically for that case only. If I happened to be an HP company
and you'd bought your car using my finance then, yes, you could sell
the car and the purchaser would have good title.
 
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U

usenet

In uk.finance Colin Forrester said:
And a link to that legislation would be helpful.
You can find it with a Google search, most local Trading Standards web
sites have it. It's *old* legislation now though.
 
U

usenet

In said:
You can find it with a Google search, most local Trading Standards web
sites have it. It's *old* legislation now though.
.... and a quick Google search later:-

There is however an exception to this rule in the case of motor cars.
Under Part III of the Hire Purchase Act 1964 (the remainder of which
has been repealed), a hirer of a car under a hire purchase agreement
or a buyer of a car under a conditional sale agreement will pass good
title to a private buyer (i.e. not a motor trader) who buys in good
faith without knowing that the car was on finance. The seller will
no doubt be in breach of his agreement with the finance company for
selling the car, and may be guilty of theft, but title will still
have passed
 
S

Stuart

Actually, you said: " **EVEN IF** there is outstanding HP...".

You even went on to say: "...give title to the
purchaser **regardless** of any outstanding HP."

In other words, you said that title passes
properly *whether-or-not* HP existed. Are
you now going back on what you actually said?
Yeah...whats wrong with that ...If there is No HP then it's a normal sale .If
there IS then the buyer still gets title so long as he buys it in good faith .
You are reading something in to what he said that is NOT there .

Stuart
 
T

Tim

You are reading something in to what he said that is NOT there .
Oh but it *is* there - he definitely said
(look back if you don't believe me):-

"The legislation was changed many years ago (in
the 70s ?) so that private purchases of vehicles
made 'in good faith' give title to the purchaser
regardless of any outstanding HP."

The word "regardless" means that the preceding
bit is valid whether-or-not there is outstanding HP.
 
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S

Stuart

Oh but it *is* there - he definitely said
(look back if you don't believe me):-

"The legislation was changed many years ago (in
the 70s ?) so that private purchases of vehicles
made 'in good faith' give title to the purchaser
regardless of any outstanding HP."

The word "regardless" means that the preceding
bit is valid whether-or-not there is outstanding HP.
You know excatly what he meant .The words nit and picking come to mind along
with pedant ..lol

Stuart
 
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