Buying a Car

If you buy a car from any source you should always ensure that there is no outstanding Hire Purchase on the vehicle.  The law states that a person selling a vehicle subject to HP cannot pass on a “good title” to a buyer.  This means that the car remains the property of the finance company so you may lose both the car and your money if you purchase a vehicle with outstanding HP.

Unfortunately, with a stolen driving licence a criminal can purchase a vehicle from a motor dealer in the name on the licence and obtain Hire Purchase using the licence as identification.  If credit checks by the finance company prove satisfactory the finance company provides the money direct to the motor dealer.  The criminal then drives off with the car which he then sells to an innocent party.

When no payments are made on the loan the finance company contacts the person named on the original stolen driving licence, who has no knowledge of the loan or the vehicle.  The DVLA supplies the details of the registered keeper and the finance company will then repossess the car from the innocent buyer.

Advice

• Always obtain a car check when you purchase a vehicle to ensure that there is no outstanding HP on it – see www.mycharcheck.com – for £3.95 you can check that the car is HP free and not stolen
• If your driving licence is stolen consider having your credit file monitored so that any attempt to raise finance in your name is quickly noticed
• When buying a vehicle from a private seller, always check their identity - arrange to meet at their home, not in a service station or pub car park
• When buying a vehicle from a private seller if the price is way under book price, be suspicious (if it looks too good to be true, it probably is)
• Check the vehicles tax disc - make sure the registration number matches that on the plate and that it hasn't been altered
• Check the registration document - make sure it hasn't been altered and the registration number matches
• Check that the 17 digit registration number on the V5 (Registration Document) matches the vehicle
• Check the service history documents and the MOT history
• Most new cars have more than one set of keys - if there's only one be suspicious
• Go to a reputable dealer