Bought Car Without Knowing It Was on HP

i am going to buy a car, car has unpaid loan, and i was told by seller about this, so i made the bank draft paid to the company from he took loan, so its the loan company getting the money for the car not the owner,
 
JoeHooker said:
The claim with the insurance company is settled, thats been done sometime in october i lost a few thousand on it, but i was happy i got away with what i did, it would have been worse if the misses was injured in any way.
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Sorry, I misread your original post - I thought you had settled on the amount of claim and were about to get paid, until this issue cropped up, and glad too that there were no injuries! Still, back to the other points, can your insurance company tell you how much was owed, if you can't get any civil response from the bank, just for info purposes, and I would recommend making every effort to contact the seller. If you can, and he/she is willing to help sort it out, that should be some reassurance I hope! Best of luck.
 
I would contact the seller directly there may be an innocent explaination. I dealt with a lady recently who sold her car through our garage. She signed a form stating there was no outstanding HP on it.
A few days later we discovered there was. I contacted her and she had in error thought the loan was a personal loan and therefore not attached to the car but it was a HP agreement. She cleared the finance that day.

I deal with people on a daily basis who genuinely do not realise they can sell their car without clearing the finance. They think if they want to burden themselves with a second car loan or continue paying for a car they no longer own, they can.
I hope this gets sorted for you soon.
 
Well, this has taught me to steer clear of HP anyways. Seems like a minefield.
Maybe I have a very simplistic view of how this should work, but I'd have thought the money from the insurance co. would have gone to the finance co. and whatever is outstanding the finance co. can chase the seller for (who signed the agreement).
Is that what happened? Did the insurance co. hand the money to the finance co?
It's bad enough that you got caught with a car that may never be yours, so wouldn't it be a step too far to expect you to cover the remaining costs?
 
the insurance company gave the money to me months ago, i have recently cashed the cheque, or put it in my account. This was around the beginning of October, it's only now that the insurance company rang me, they are trying to clear the claim, they said to me that i have outstanding finance on the car, i thought they had got the wrong person. They rang the bank but they wouldn't tell him anything but the car still had finance remaining on it but was registered for a different name, the original owner.

I rang them then got sent around on 3 different people having to tell each my storey, then to get treated like a criminal myself by some snotty lady, all i wanted to know was the situation of the case but she wouldn't even tell me that obviously if they reckon i am due to take over the finance for the car that they would have told me the finance owed and be a bit more friendly.

However i would have thought to hand over finance like that to somebody a legal document would have had to be signed by me, stating that i am willing to take over the remainder of the monies owed.

I think i'll leave it to the bank to investigate, i'm not going to get cut up about it any longer. I'm sure they have the address of the previous owner, let them pay them a visit.
 
In relation to a hire purchase car involved in an accident i'm not 100% sure but i think the owner has to report the matter to the hire purchase company, pay over the insurance proceeds and they may get a bit of an interest rebate on the lump sum from the insurance but i think they still owe the balance on the agreement. It's very important therefore that the owner of a hirepurchase car has comprehsive insurance otherwise they can be left with a very big bill still to pay off and no car (rather like a car loan) Failure to report an accident is a breach of the Hp agreement.
 
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Thrifty said:
In relation to a hire purchase car involved in an accident i'm not 100% sure but i think the owner has to report the matter to the hire purchase company, pay over the insurance proceeds and they may get a bit of an interest rebate on the lump sum from the insurance but i think they still owe the balance on the agreement. It's very important therefore that the owner of a hirepurchase car has comprehsive insurance otherwise they can be left with a very big bill still to pay off and no car (rather like a car loan) Failure to report an accident is a breach of the Hp agreement.
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Hi Thrifty. Yes, that was my understanding also, it makes sense as the car is the property of the finance co. so they'd have to be informed of any insurance claim on the car.
My concern was that it sounded as though the finance co. were pursuing JoeHooker for any outstanding money between the current finance balance and what the insurance co. paid. They should surely chase the seller for this. I'm sure the finance co. are mighty p****d over this, but it's hardly JoeHookers fault.
 
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Hi don't really understand what you're asking. If the car was subject to a HP agreement then its up to the HP company how they decide to pursue it but technically the new owner takes on the car with the burden of the HP agreement. I don't honestly know what happens if new owner then has an accident in it - but would imagine he should inform the HP company if he has since become aware of the HP agreement. As said very much up to HP company how they decide to deal with. New owners only course of action if they pursue him is for him to then take legal actions against person who sold him the car. Unfair but thats it.
 
That's the bit I don't understand. How can the new owner take on the burden of a HP agreement that they never signed. Is it even possible to be made liable for a HP agreement that you personally never agreed to?
Surely for that to happen both parties would at least have needed to inform the finance co. that the car was being passed on to a new owner. It surely would have required signatures from old and new owner. I'm sure that doesn't happen, the HP gets settled before the car can change hands.
From what I've read in this topic, if I bought a car and found out that it had outstanding HP, the best thing I could do would be sell it on to the next unsuspecting person, get my name off the VRC and say nothing.
 
jbbcie said:
That's the bit I don't understand. How can the new owner take on the burden of a HP agreement that they never signed. Is it even possible to be made liable for a HP agreement that you personally never agreed to?
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It comes down to your assumption that you are the "new owner": there's quite a difference between buying something from someone who owns it, and paying cash to someone who says they own it.

The registration documentation is NOT proof of ownership.
 
ang1170 - this is the confusing bit. What *is* proof of ownership ?

z
 
Hey Guys...

Bringing this one back up with a question:

Looking at a car in a well established used car dealers on the Naas road (tomorrow, hopefully!) - Did a Motorcheck on it, and it said there was HP still outstanding on it - rang the garage, they said yeah, there was 5.5k but that cheque had been sent and they have proof of receipt of same...

Question is, if they can satisfy me that any outstanding HP balance has been paid, is it safe enough to buy - this whole 'buyer beware' thing is freaking me out a bit!!

We have finance in place and insurance ready to go, and really like the car....would you!?

Cheers...
PB :)
 
Phibbleberry said:
... Did a Motorcheck on it, and it said there was HP still outstanding on it - rang the garage, they said yeah, there was 5.5k but that cheque had been sent and they have proof of receipt of same...

Question is, if they can satisfy me that any outstanding HP balance has been paid, is it safe enough to buy - this whole 'buyer beware' thing is freaking me out a bit!! ...
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You need confirmation in writing addressed to you from the finance company that the finance is cleared, and that the sale by the dealer is authorised, otherwise the car is not the dealer's property to sell. (They may want your money to clear the existing loan, despite what they told you).

Under the HP agreement, until all loans are cleared, title to the car remains with the HP company.

I'm sure dealerships take in cars as trade-ins all the time with finance outstanding, but in the current climate there is a mounting level of repossessions and loan defaults (I have a pals who work in various sides of the business - car-sales, loans and repossessions)
 
Ok, so I've been faxed the Banks reciept of cheque...it hasn't cleared yet, but they've recieved it...The fax is clearly a legit one from bank to dealer, detailing the previous HP owners name/ref no. etc...
The dealers been around about 8 years, has two dealerships etc...its a fairly safe bet they won't cancel the cheque, right!?

Cheers,
PB
 
zag said:
ang1170 - this is the confusing bit. What *is* proof of ownership ?

z
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I'd like an answer to this too...

If the registration document isn't a proof of ownership, then what is its purpose ? The car is registered to Joe Bloggs but John Doe actually owns it, what proof does John Doe have of ownership ?
 
Phibbleberry said:
Ok, so I've been faxed the Banks reciept of cheque...it hasn't cleared yet, but they've recieved it...The fax is clearly a legit one from bank to dealer, detailing the previous HP owners name/ref no. etc...
The dealers been around about 8 years, has two dealerships etc...its a fairly safe bet they won't cancel the cheque, right!?

Cheers,
PB
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If you say so. You seem to want to buy the car so go ahead.
 
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