Part 2 in the case of the dealer who bought a car which was not HPI finance clear


We were able to fight the case on 2 technicalities and come to a deal with the finance company reducing the liability down from £12,000 to £5000.

Author: Nona Bowkis
Reading time: 2 minutes

This article is 5 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Last year we reported on a case where our client was taken to court by a finance company. Our client had bought a car from a consumer and then sold it on without realising there was outstanding HP:

As the above link explains, we were able to fight the case on 2 technicalities and come to a deal with the finance company reducing the liability down from £12,000 to £5000. This still left our client out of pocket and so we helped our client bring a claim for that amount against the consumer who sold the car to him claiming it to be finance free. Our case was based on the fact that the consumer did not have title to the car (it was still owned by the finance company) and so he had created a breach under The Sale Of Goods Act 1979.

The consumer did not want to hand over any money and so we had to issue a court claim to get the matter resolved. This action resulted in a deal meaning that for the price of a Lawgistics membership and one court issue fee of £185, he was able to substantially reduce his initial potential loss of £12,000 to just £1000. If the matter had ended up in a hearing, our client would have probably clawed back the lot but they took a commercial decision to get it resolved early and put the matter to bed.  Job done.

Nona Bowkis

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.