Our member purchased a left-hand drive Range Rover in 2019. It had been used by the previous owner to travel between the UK and a property in Spain. At the time of purchase, our member paid off the outstanding finance, which amounted to £15,000.
The vehicle was later sold in 2020 to a new owner, who also intended to use it for travelling between Spain and the UK. The new owner even fitted the vehicle with a cherished registration.
However, four years later, our member received an email from the buyer explaining that the car had been subject to police checks in Spain. The Spanish authorities had determined that the vehicle was stolen in France in 2014 and that it legally belonged to a French insurance company. The buyer reported being told that the vehicle would not be returned to him and demanded a full refund. Our member referred the matter to their insurers, as they held the relevant cover.
The law surrounding conversion is complex. In this case, the original owner, now a French insurance company, holds the legal right to take action against the converter, not our client’s buyer. However, under the Consumer Rights Act 2015, a generous remedy is provided for consumers who purchase a vehicle from a trader that does not have the title to sell it: the right to reject the goods and receive a full refund.
In such situations, the usual 30-day limit for the short-term right to reject does not apply, and no deductions can be made for the consumer’s use of the vehicle.
The key legal principle here is Nemo dat quod non habet – “no one can give what they do not have.” This means that a person or entity who does not legally own a vehicle cannot pass good title to another. As a result, the consumer is entitled to a full refund, even after several years of vehicle use, because in effect, the contract never legally existed.
If you are facing a similar issue involving title disputes or stolen vehicles, our legal team can help you understand your obligations and protect your position. Lawgistics members also benefit from expert guidance and support on insurance matters, ownership verification, and consumer rights.
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