Outstanding finance on car
Discussion
Hi guys,
Is anyone familiar with the application of the Consumer Credit Act 1974 with regard to buying a car with outstanding finance? My mate has been caught by a guy who part-exchanged a car with him 3 months ago and didn't tell him it had finance owing. Now I want to buy the car from him and we have just discovered the outstanding finance. Obviously he can't sell me the car until he takes title for it, which is currently held by the finance company (Black Horse).
My friend contacted Black Horse, who initially told him that they would release their interest in the car which would pass title to him, and that they would pursue the original seller who had the finance. However they then went back on their word when he told them about the part exchange, stating that because it was involved in a "barter" (their own words!) that he would not be entitled to take title of the car as previously promised, as this would only apply to a cash buyer.
My friend is now completely at loss for what to do and I really want to buy the car!! So I've done a little online research and come up with the following quoted on quite a few websites (including DVLA and Directline):
The Consumer Credit Act 1974 gives ‘good title’ (ownership) to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous unpaid hire purchase or conditional sale agreement. This means that the finance company, which is claiming the money, cannot usually repossess the car against your will.
My first question is, does this apply to my mate? Or is he somehow not classed as an innocent purchaser because he part exchanged rather than buying with cash?
My second question is, if I call the finance company and claim that I have bought the car and just found out there is finance owed, will they pass title to me as an innocent purchaser? My mate is happy to write me a receipt and put the log book in my name if necessary (without any money changing hands) to try to get this cleared up!
Any help or advice? I know most people will tell me just to find another car, but I really want this particular one and it would be hard to find another like it
Is anyone familiar with the application of the Consumer Credit Act 1974 with regard to buying a car with outstanding finance? My mate has been caught by a guy who part-exchanged a car with him 3 months ago and didn't tell him it had finance owing. Now I want to buy the car from him and we have just discovered the outstanding finance. Obviously he can't sell me the car until he takes title for it, which is currently held by the finance company (Black Horse).
My friend contacted Black Horse, who initially told him that they would release their interest in the car which would pass title to him, and that they would pursue the original seller who had the finance. However they then went back on their word when he told them about the part exchange, stating that because it was involved in a "barter" (their own words!) that he would not be entitled to take title of the car as previously promised, as this would only apply to a cash buyer.
My friend is now completely at loss for what to do and I really want to buy the car!! So I've done a little online research and come up with the following quoted on quite a few websites (including DVLA and Directline):
The Consumer Credit Act 1974 gives ‘good title’ (ownership) to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous unpaid hire purchase or conditional sale agreement. This means that the finance company, which is claiming the money, cannot usually repossess the car against your will.
My first question is, does this apply to my mate? Or is he somehow not classed as an innocent purchaser because he part exchanged rather than buying with cash?
My second question is, if I call the finance company and claim that I have bought the car and just found out there is finance owed, will they pass title to me as an innocent purchaser? My mate is happy to write me a receipt and put the log book in my name if necessary (without any money changing hands) to try to get this cleared up!
Any help or advice? I know most people will tell me just to find another car, but I really want this particular one and it would be hard to find another like it
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