Hi new here was looking for a bit of advice.

Recently my brother bought a car with his girlfriend from her family. The car was bought in good faith for a couple of grand. Unfortunately 3 weeks into owning it the car was written off in an accident ( no-one hurt thankfully), and an insirance claim was put against it. The damage done to the car was enough to warrant a write off from the insurance company so all well and good so far, or so we thought. Next thing we are informed that no money will be coming the way of my brother for the car as there is outstanding finance on the car from a previous owner. So now he is stuck with no car and out of pocket for the money he paid for it.

Question is : a) Is he entitled to anything for the car?

b) Is there anyway he can go about getting re-imbursed for the car?

c) Legally where does he stand on this?

Guys any help would be greatly appreciated as this is causing no end of friction and sleepless nights within the family.

Cheers,

Robert

Hi,

As far as the insurance is concerned there is nothing you can do as the insurance company will automatically pay off the finance on the car before reimbursing any shortfall (if there is any).

The insurance company will assume that these had all been checked before purchasing the vehicle. You could try and approach the family for reimbursement.

Thanks

Sadly "unwittingly" is the correct word.

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Circumstances alters cases!!

Thanks for the comments guys. Was wondering if the best course of action was now to talk to the CAB or write a letter to the insurance (Still have to pay the excess on it). Or even worst case scenario small claims court or police intervention ( I think this is classed as some kind of fraud). Could anyone clarify this point for me?

Cheers

Have you contacted the person whom you bought the car off as yet? If so what was their response? The insurance will not get involved in any dispute that you have, as far as they are concerned you have taken out an insurance policy with them and as long as you pay the excess, that is all they will be concerned about. However, it may not do any harm to contact them. You could apply for your money back in the small claims court if thats the route you would like to take. The cost of such a claim depends on how much you want back (£3,000 I think is about £100).

Before taking this option however I would seek advice from the CAB and see what they have to say. I must admit that the Police may not be forthcoming in helping you as legally no contracts have been signed.

Taking the girlfriend's family to the small claims court may not improve family relationships.

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Circumstances alters cases!!

Yes but neither has selling him a dodgy car. If they are unwilling to part with the money, thats prob the best option.

Thanks for your replies guys. Not too bothered about family friction as I would quite happily break the legs of the guy that put my bro in debt for this but that is another story. I have written a letter to the insurance on his behalf to see if we can come to some compromise as I have no other suggestions. But guys keep them coming as any ideas are more than appreciated.

Cheers,

Robert

Might be an obvious one but have you checked with the finance house in question that the details of the vehicle match those on the finance agreement? I have seen a number of examples of wrong reg numbers / chassis numbers on finance agreements, making it look like an unencumbered car has outstanding HP and vice versa.

Might save you having to dismantle somebody's lower legs...

JJ

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You gotta tie yourself to the mast my friend, and the storm will end.

Not sure if the person whom sold you was aware, but in most finance agreements it says that the car is their property until paid for in full. So by selling it technically its classed as theft. Always best todo a HPI check, buying from family is always the worst practise in my experience.

Hi,

The best course of action is to do an HPI check on the vehicle. It will tell you who the finance is with if it is still outstanding, and it will provide you with an agreement number as well as the finance companies contact number. Ring the finance company and explain the situation and they may be able to offer some advise!

A friend of mine bought a car out of the paper for £4k - but didnt bother to do an HPI. The car was later repossessed by a finance company as the previous owner had never made a payment on his finance - my friend was left with no cash and no car!

In my opinion it should become law that all cars sold, private or other come with a valid HPI check to save innocent people from all this hassle!