Q. I recently bought a good second–hand car. The owner moved abroad and his parents were looking to sell it quickly. Once I bought it, I decided to book it in for a service. My garage discovered that there was finance due on the vehicle and I’m very worried. I do have the logbook in my own name, which should mean that I’m the owner. Am I the owner and, if not, what steps should I take next?
Dear Reader,
You ask if you are the owner of the vehicle. Unfortunately, while there is finance outstanding, the person who owns the vehicle is the bank or other financial institution. The parties that sold the vehicle to you, given there was finance owing on the car, had no right to do so.
If the finance has not been paid, then the bank or other financial institution could seek to repossess the vehicle. They may need to seek recourse through the courts depending on the overall proportion of the finance that had been paid by the previous owner.
It might be the case that the previous owner intended to pay the outstanding finance from the proceeds of the sale to you. You should double check.
You, or your solicitor, should immediately make contact with the people from whom you bought the vehicle, confirm if they were aware the vehicle was subject to finance and confirm whether all relevant finance has been paid.
You could also suggest that you return the vehicle and they refund the monies. If the finance is not repaid, or a refund offered, you may have to consider suing the owner/family. This can be complicated as the owner is now living abroad.
Even if you do obtain the logbook in your name, that does not negate the right of the bank or other institution to repossess the vehicle.
You mentioned that you purchased the vehicle at a good price. You, or your solicitor, could speak with the finance company to confirm exactly what the position is with regard to finance. If there is finance still owing, you could ask the company if some arrangement can be reached with them directly. There may not be a substantial amount outstanding so you may be able to arrange to pay them off in installments.
This is clearly not a great situation to be in, but you should take steps now to try and remedy the situation as early as reasonably possible. For now, you should contact the finance company, the people who sold you the car, and talk to your solicitor.