finance still on SOLD vehicle.

[ruff'n'smov]

Mate of mine ( no really ) sold a Van about 4 months ago on Ebay,that he had owned for 16 months, and in turn had bought from a trader on Ebay.
Last week the new owner turned up with a letter from Ings leasing (I know they haven't been trading since 2012 but apparently still administer existing finance/leasing contracts) anyway letter said there is outstanding finance on the van and new owner needs to settle it.

Where does my pal stand in this, not morally but legally.

[catman]

As I understand things, your friend had clear title to the goods, having bought from a Trader.

I imagine that the Finance co would have to chase the person who took out the finance first and then the Dealer.

That's as far up the chain that they should go. Under no circumstances should the new owner hand the car back. He should inform the Finance company of the chain of events.

Tim

[Steffan]

catman said:

As I understand things, your friend had clear title to the goods, having bought from a Trader.

I imagine that the Finance co would have to chase the person who took out the finance first and then the Dealer.

That's as far up the chain that they should go. Under no circumstances should the new owner hand the car back. He should inform the Finance company of the chain of events.

Tim

I think that is a correct assessment of the bet way to resolve this. However I would recommend checking with trading standards and informing all the parties in the chain. The dealer is the definitely the man with a problem but as many posts on here have confirmed that does not always mean that he will readily sort this out.

I do not think a valid claim can be made against you but I do suggest attempting to resolve this matter would be worthwhile. It should serve as a reminder to all that the cost of a HPI search is money well spent in such circumstances because the providers would be responsible were this to happen post search.

[andyiley]

You don't say whether your pal bought this van on finance, that is crucial here.

[papa3]

Legally the car is the property of the leasing company until the finance is settled. If it was a true lease, rather than a pcp type personal contract then the vehicle actually belongs to the leasing company, it is not just a security over the asset.

Even if it is a security there are many instances of finance companies repossessing cars from innocent purchasers where a debt is owed to them. The trader that sold to your mate had no right to sell the vehicle as they have no title to it if it was a leased vehicle. HPI exists for a reason and Lease deals show up on HPI.