its really amazing. tell me how can i bought a car at cheap price?

This is fairly complicated. You are not responsible for the finance that the seller had on the car, but the finance company can take legal action to recover the car. If you have the V5 reg doc and other proof that you were sold the car, you might be able to hold on to it and the finance company would then have to take up the outstanding finance matter with the seller directly,

Suggest that you send them a holding letter just giving them the basic details and that you will come back to them (say) within 21 days with further information concerning the purchase. Then get searching for the receipt, Get the bank to confirm details of the cheque you issued. Your bank may still have the cheque showing that it was paid to the seller. Once cheques are processed they are returned to the issuing bank. See if you can find out the latest contact details of the seller. Contact DVLA to see what information they have on record. Do DVLA have any note of HPI on the car? I am led to believe that DVLA might hold more information. If not the HP1, they may have information showing the seller sending in a form confirming the transfer of ownership to you.

This may take a few months to resolve and if the start making any legal threats, you should obtain legal advice. If you are a member of AA or RAC, do they have a legal helpline that you can contact ?

I bought a car 20 months ago from a work colleague.
I didn't do a HPI check as I had worked with him for years & trusted him.
I no longer work with him & am not in touch with him

Yesterday I get a letter from a finance company saying the hire purchase is undischarged & that the seller had no right to dispose of the vehicle & as a consequence they retain an interest in the goods.

I have a questionaire to fill out regarding the purchase details, cost, who from & where etc.

I paid part cash, part cheque & cant find the receipt.

Does anyone know where I stand, will I lose the car?