When is a bargain not a bargain? When you buy a car, do a HPI and settle back in the knowledge that the car you have bought is free from finance and is yours to do what you want, please think on. Many log book loans are not registered on the HPI system as the loan is secured against the car and not purchased though a hire purchase agreement. I have seen an increase in instructions from log book loan companies. Sitting in my drive now is a very nice car, waiting to be picked up to be sold at auction. The couple who had paid just under 4k for it had a shock yesterday morning when I turned up and took it. I really felt for them, they had had the car for 2 months and had only just had the "missing v5" returned from the DVLA. The previous owner stopped paying his loan in December, he has moved abroad as well. The signs where there for them to see, but they where blinded by the bargain. The car was advertised at around a third of its value, the seller even told them he was selling in order to fund a move abroad, no V5, no sale documents, they gave him cash and he wrote a receipt on a sheet of paper. The system is wrong. All vehicle finance should be registered, but this couple had not even bothered with a HPI check anyway. If there had been HP on the car they could have claimed that they had title to it, but a loan with the car as security is different and they now have little chance of getting a penny. The loan company is out of pocket to the tune of nearly 20k as it loaned three times the value of the car. So this bloke has got away with around 15k ( taking off the amount he must have paid for the car in the first place). So buyer beware.....if it looks to good to be true, it is to good to be true. No V5... Walk Get one of the motoring agencies like the RAC to check it out, if they say you are good to buy, you may have a chance of getting something back from them. Avoid cash. You may have recourse through the bank if you do an online transfer and the transaction is fraudulent. The fewer of these jobs I get instructed on the better.
http://www.dailymail.co.uk/news/art...hove-cars-seized-pay-debts-former-owners.html Never buy a car without a logbook
