finance owed

[pontiac]

i have just bought a car but have just found out there is finance still owed on it what do i do ?

[RATTER15]

Seek legal advice, I think the law states that until 3/4 of the purchase price has been paid the vehicle is still the property of the finance company, so the person selling the car may have committed theft by selling the car and you could have the car confiscated. I'm not 100% sure of these figures but you do need legal advice.

[Oneeyedvic]

It depends on if you knew there was finance outstanding on it (or if you had reason to think there may be finance outstanding).

What age is the car and where did you buy it from and for how much?

[Didwot]

Oneeyyedvic works in the finance industry and knows about these things. The person who sold you the car can give you good title to the car, free of the finance, provided that you did not know (and did not close your eyes to the obvious - hence the point about price and so on) that it was subject to finance.

[bigbubba]

If the car is on finance then the car is still owned by the finance company, period.

You never own a car on finance until you have paid all of your instalments including what is called an option to purchase fee.

What RATTER15 may be talking about is the halves and thirds rule? This is that when a car is on finance if you have paid at least a third of the total amount payable then the finance company will need a court order to gain repossesion of the vehicle. If you have paid a half of the total amount payable then you can 'voluntarily terminate' the agreement which means you can give the car back to the finance company and theoretically they can not list this on your credit history. Neither of these apply in this instance
I am afraid that in this instance unless the finance gets cleared (either by you or the person who sold you it) then the finance company can get a court order, reposess the car and leave you out of pocket.

Bubba

[Oneeyedvic]

Bubba is not correct on this matter - under Hire Purchase regulations, an 'innocent purchaser' can take title to the vehicle.

[bigbubba]

I am correct on this matter, I work for one of the biggest car finance companies in the UK, being an innocent purchaser is no defence.

You have no legal title to the car I am afraid.

Bubba

[bigbubba]

It has however been known that on the finance house' discresion they can choose not to reposses the vehicle, this is purely their choice and it is based upon the financial implications of repossesing the car, for example, if �500 is outstanding then they would more than likely waive this amount as it is more trouble than it is worth. However, if it is �10,000 outstanding on the car then they will have it back, guaranteed.

As I have stated, LEGAL TITLE remains the finance companies until all payments have been made.

[Oneeyedvic]

bigbubba - I don't particularly care who you work for - and it fact I find it worrying that staff of the "biggest car finance companies in the UK" aren't actually taught consumer credit law and will presumably give their customer's inaccurrate and misleading advice.



pontiac - As I have previously stated, there is a defense however it is by no means clear cut.

If you do get someone like bigbubba from the car company trying to mislead you into giving the car back, you really need to contact a solicitor or maybe your local CAB.

In the meantime, you may want to read articles such as this: http://www.caerphilly.gov.uk/yourservices/trad ingstandards/faqfinancialservices.htm#q1
or here: http://www.hants.gov.uk/regulatory/faqs/financ ial10.html

which are both government websites and who should hopefully know the law!

[bigbubba]

I know very well waht the law states, and you can get of your high horse,

The reason that this is very uncommon is that it is very very difficult to prove that you didn't know that the car wasn't on finance. How can you prove that you didn't? - the onus is on the purchaser of the car car to prove this and not for the financ ecompany to prove otherwise.

[Oneeyedvic]

So firslty you state "If the car is on finance then the car is still owned by the finance company, period. "

then you go on to state: "being an innocent purchaser is no defence."

and then go onto to say: "The reason that this is very uncommon " - note the word uncommon!

The reason I am on my 'high horse' is because you don't seem to know the difference between your FACTS and your OPINION and you are stating that you are speaking from authority.

As I have stated from the beginning, this is not clearcut.

I hope that in the future, you do not make judgements and factually inaccurate assertions without knowing the full facts (see my first answer).

My first answer inidcates (as an example) that if pontiac purchased the vehicle from a bona fide dealer, then they have title to the vehicle (so long as it is not a stolen vehicle or fraudulently obtained) - again no clear cut case.