selling a car on finance

[pinkbabytots]

Can you please tell me the answers to the following:

1. If someone sells a car, knowing it had finance outstanding and does not pay the finance company but keeps the money. What offence have they committed? Also would it be a civil case or criminal? Also-

2. If someone buys a car on finance, doesn't carry out an HPI check, do they have an defence of 'innocent purchaser for value' and so get to keep the car?

Thanks in advance

[Akakpo]

1. This is a breech of agreement and the cinance company can pursue this through the courts ro recover their money. I don't think this is an offence per say but a deformation of character. You details will also be registered with credit agencies for default of payment

2. No. It is the duty of the purchaser to ensure that the item (in this case the car) is clear of any loans secured on it. In this case, the car can be taken away from the new owner.

I am sure someone will be online soon to explain in more detail

[bananie]

Caveat Emptor - buyer beware. The seller will have committed fraud and can be arrested and charged with this criminal offence, the police will probably take the car from the new owner and he will only be able to recover the money by raising a civil action against the previous owner.

[bananie]

** sorry forgot to mention - the person who had the car on HP actually wasn't the 'owner' in the true sense of the word and didn't have good 'title' to sell