Bought a car with Log book loan attached to it
Discussion
Hi Chaps,
Just after a bit of info as I am sure someone on here must have know what to do (usually do!)
A mate of mine bought a Lotus Elise, private sale, it was a nice car and very well priced so did the deal there and then and drove home.
However rather then HPI it before buying it he did it when he got home and has now discovered it has a Log book loan attached taken out 8 months ago by the guy he bought it off.
Now to top it off he also does not have the V5, after searching the web I can see this is becoming a common scam, the guy he bought it off has disappeared so no come back there.
So what are his options?
Also the car is not registered in his name and the loan people do not know he has the car, its been bought from Newcastle and he lives in London, so what are the dangers of them even finding the car and just taking it?
Also how would they find out he now has the car? Insurance and RFL records from DVLA? Would they have access to this?
Any advice much appreciated.
Just after a bit of info as I am sure someone on here must have know what to do (usually do!)
A mate of mine bought a Lotus Elise, private sale, it was a nice car and very well priced so did the deal there and then and drove home.
However rather then HPI it before buying it he did it when he got home and has now discovered it has a Log book loan attached taken out 8 months ago by the guy he bought it off.
Now to top it off he also does not have the V5, after searching the web I can see this is becoming a common scam, the guy he bought it off has disappeared so no come back there.
So what are his options?
Also the car is not registered in his name and the loan people do not know he has the car, its been bought from Newcastle and he lives in London, so what are the dangers of them even finding the car and just taking it?
Also how would they find out he now has the car? Insurance and RFL records from DVLA? Would they have access to this?
Any advice much appreciated.
ked.Err, he's bought a car that the seller had no right to sell and in fact didn't own.
Did he not see the V5 at time of purchase? did he not even perform the most cursory of checks on the vehicle before throwing money at the seller?
A sad tale of buyer beware and your mate is likely to lose both the car and his money.
Did he not see the V5 at time of purchase? did he not even perform the most cursory of checks on the vehicle before throwing money at the seller?
A sad tale of buyer beware and your mate is likely to lose both the car and his money.
The mate has a new car, but not the V5, and the car actually has 8k worth of finance on it.
I believe the mate is in a spot of bother.
As far as I can see, he bought a car off a man who had not right to sell it.
Effectively, he just bought London Bridge.
The best bet might be to contact the finance company and let them know what's happened and see if they can release the loan and find the seller.
Step two would be to call the police.
At some point the mate will need to insure the car or get a new v5.
At that point the finance company will probably be made aware – if they haven’t already noticed they haven't been paid for a while.
They will find the car and take it back.
They will find it because you mare will have to tell the DVLA.
The morale of the story is to always do an HPI check, and never buy a car without the V5.
(unless you really, really know what you're doing)
I believe the mate is in a spot of bother.
As far as I can see, he bought a car off a man who had not right to sell it.
Effectively, he just bought London Bridge.
The best bet might be to contact the finance company and let them know what's happened and see if they can release the loan and find the seller.
Step two would be to call the police.
At some point the mate will need to insure the car or get a new v5.
At that point the finance company will probably be made aware – if they haven’t already noticed they haven't been paid for a while.
They will find the car and take it back.
They will find it because you mare will have to tell the DVLA.
The morale of the story is to always do an HPI check, and never buy a car without the V5.
(unless you really, really know what you're doing)
Hide the car, do not tell them where it is.
Unfortunatly the more sophisticated scammers get a duplicate logbook prior to taking out the logbook loan so as a buyer there is no way of protecting yourself from this.
The logbook loan company will do anything to obtain the car from you, and there seems to be a loophole in the law which means they do not have a legal requirement to register an interest on Hpi.
I suggest he contacts the company below they are the best in the business at sorting this sort of stuff out.
www.car-crime.com
I thought the loan company kept the log book. No one would buy a car with out seeing the log book, and being handed the correct paper work! Would they?
http://www.bbc.co.uk/pressoffice/pressreleases/sto...
http://www.bbc.co.uk/pressoffice/pressreleases/sto...
Ian1976 said:
Who earth pays good money for a car with no V5? The lack of HPI is poor judgement but the lack of a V5 is madness.
This should have set alarm bells ringing. You might as well have bought a stolen car.
Let me guess, it was a bargain price?!
having the V5 does not guarantee ownership of a vehicleThis should have set alarm bells ringing. You might as well have bought a stolen car.
Let me guess, it was a bargain price?!
Do you know how they will try find it? It's not registered in his name yet or insured
POORCARDEALER said:
Hide the car, do not tell them where it is.
Unfortunatly the more sophisticated scammers get a duplicate logbook prior to taking out the logbook loan so as a buyer there is no way of protecting yourself from this.
The logbook loan company will do anything to obtain the car from you, and there seems to be a loophole in the law which means they do not have a legal requirement to register an interest on Hpi.
I suggest he contacts the company below they are the best in the business at sorting this sort of stuff out.
www.car-crime.com
Unfortunatly the more sophisticated scammers get a duplicate logbook prior to taking out the logbook loan so as a buyer there is no way of protecting yourself from this.
The logbook loan company will do anything to obtain the car from you, and there seems to be a loophole in the law which means they do not have a legal requirement to register an interest on Hpi.
I suggest he contacts the company below they are the best in the business at sorting this sort of stuff out.
www.car-crime.com
What an unusual business anyway. I always thought the registered keeper is different to the owner. For example my wife and I own both cars equally but we are registered on one each.
How can you secure a loan on a V5 when it's not clear if the registered keeper is the actual owner for all of the cars value. It's not like the bank holding onto the deeds for your house until the mortgage is paid off and even then it's registered with the land registry in the owners names - this is all done through official channels unlike changing a V5 which anyone can do.
I suppose the log book gets reregistered with the loans company? If not the tax stuff and any speeding and parking tickets go to the previous registered keeper would they not. What would happen if your mate wrote to the DVLA and requested a new V5, perhaps got a private plate? I guess the DVLA would have to send a letter to the original registered keeper and if they did not hear back it gets registered with your mate?
Not that it's probably worth much but does he have a receipt, or was it a cash sale with no proof of funds/vehicle exchanging hands.
Seems like he's been stitched up. I imagine the car was at such a price he just made a really quick decision to buy without looking into it too much.
How can you secure a loan on a V5 when it's not clear if the registered keeper is the actual owner for all of the cars value. It's not like the bank holding onto the deeds for your house until the mortgage is paid off and even then it's registered with the land registry in the owners names - this is all done through official channels unlike changing a V5 which anyone can do.
I suppose the log book gets reregistered with the loans company? If not the tax stuff and any speeding and parking tickets go to the previous registered keeper would they not. What would happen if your mate wrote to the DVLA and requested a new V5, perhaps got a private plate? I guess the DVLA would have to send a letter to the original registered keeper and if they did not hear back it gets registered with your mate?
Not that it's probably worth much but does he have a receipt, or was it a cash sale with no proof of funds/vehicle exchanging hands.
Seems like he's been stitched up. I imagine the car was at such a price he just made a really quick decision to buy without looking into it too much.
Taken from BBC site-
As the logbook loans are secured using a Victorian law called the Bill of Sales Act, they offer much less protection to consumers. A borrower taking out a logbook loan actually hands ownership of the vehicle over to the lender, meaning that not only does the borrower have no legal rights to sell on the vehicle, but that any innocent party buying it also has no rights of ownership.
As the logbook loans are secured using a Victorian law called the Bill of Sales Act, they offer much less protection to consumers. A borrower taking out a logbook loan actually hands ownership of the vehicle over to the lender, meaning that not only does the borrower have no legal rights to sell on the vehicle, but that any innocent party buying it also has no rights of ownership.
Things may have changed recently, but some years ago I can remember work trading a vehicle in.
Some months later we got a letter from DVLA saying that a V5 had been applied for and we could object if we wished.
But it went to the registered keeper.
But, sounds like the HPI is the problem here. BUt what gives a registered keeper the right to have a loan that will show on HPI. That must be in the terms of the loan that he has to sign to say he is entitled to use the car as security.
May end up with a court case I guess.
Some months later we got a letter from DVLA saying that a V5 had been applied for and we could object if we wished.
But it went to the registered keeper.
But, sounds like the HPI is the problem here. BUt what gives a registered keeper the right to have a loan that will show on HPI. That must be in the terms of the loan that he has to sign to say he is entitled to use the car as security.
May end up with a court case I guess.
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