finance question

[tommytwotanks]

i heard this story in the last couple of day's, you buy a car from someone (private seller) thats turns out to be on finance, but you only find out this when 3 years later when you go to trade the car in and the dealer says it's on the HPI so he wont touch it, problem is that the finance company has gone belly up, how does the current owner find where he stands as the car is now worth only a couple of hundred pounds, will he be able to sort this mess out and get the car off the HPI list

[smudger]

Quote..."you buy a car from someone (private seller) that turns out to be on finance"

In that case the new buyer would have to paid cash or cheque for the car then, as if he had tried to get finance to buy it, the loan company would find out straight away that the car was already on finance? Or have I got that wrong?

[tommytwotanks]

Quote..."you buy a car from someone (private seller) that turns out to be on finance"

In that case the new buyer would have to paid cash or cheque for the car then, as if he had tried to get finance to buy it, the loan company would find out straight away that the car was already on finance? Or have I got that wrong?

as far as im aware, the seller sold the car while on finance, the buyer 3 years ago paid £2,300 cash, now engine is on it's last legs so he was trying to trade it in, dealer offered the chap £350 before doing HPI check, then said the deal was off because the car was on the HPI list, the present owner said the finance company (welcome) has gone bust, so the chap doesnt know what to do to find out where he stands

[wagolynn]

Something does not add up here, if the finance company had gone into receivership, the receivers would pursue all the customers for payment. When the receivers move in, they even search the office cat and mice for any cash...

[smudger]

Quote...."dealer offered the chap £350 before doing HPI check,"

You can get an HPI check done for £3 by using your mobile phone, you text the Reg number, and get a reply back in less than a minute

[tommytwotanks]

yes but its a bit late in the day to do a HPI check when you want to sell, the problem is that its on the hpi due to the previous owner, how does he get it removed because he doesnt own any money on it, the car is worth very little due to a knackerd engine, cant sell it dud to hpi report, maybe scrapping it is an option, or is that breaking the law some how

[wagolynn]

Trace the finance company, the finance may still be outstanding if the receiver is involved. Otherwise Consumer Direct (Google it) may help or the FSA.