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I got a car four months ago after exchanging my old vehicle. I have since found out that this car is subject to a logbook loan and the loan company want to take it away. What are my rights?
I got a car four months ago after exchanging my old vehicle in a private transaction. I have since found out that this car is subject to a logbook loan and have been sent a copy of the Bill of Sale. The loan company have said they are coming to take away the car and apparently we have no rights regarding this. The person we got the car from was not the subject of the loan but the previous owner was and cannot be traced by the loan company. My old vehicle has since been sold by the man I exchanged with and he made a good profit, whereas I have been left with nothing. Can you please advise me as to whether or not I have any rights at all?
If the person who sold the car to your seller sold it for value without advising your seller of the finance agreement then your seller was a purchaser "for value and without notice". This meant that the person who sold it to him was a "seller in possession". What the upshot of this legal terminology is, is that a seller in possession can pass title in a car and the finance company cannot consequently come after you for its return. You will need to obtain your seller's assistance in proving this.
If the car was stolen or your seller knew well of the finance agreement and was not a purchaser "for value without notice" then you have a claim against your seller for the value of the car. Although a private seller gives no warranty as to the condition of a car, he does warrant that he has title in the car to sell.
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