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"If you're buying from a recognised dealer, you have far
Page 40
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more legal protection and the dealer will almost certainly have done the checks with us."
Under the law, a vehicle that is subject to a finance agreement, but is then sold on to a third party who has not been informed of the debt, still belongs to the finance company.
It's this little known fact that explains why we hear stories of vehicle owners being left thousands of pounds out of pocket when credit firms demand the vehicle back. If the seller can be identified and traced, it could be possible to sue them. But the very nature of the business often means they have disappeared before the law can catch up with them.
According to HPI, an astonishing one in five vehicles it is asked to check has outstanding finance on it. It holds the records on more than seven million finance agreements. Another one in 12 has previously been listed as a write-off. Although these wrecks can be restored legally and certified roadworthy by an insurer, many are bodged back-street repairs that should not be on the road.
Most dealers routinely carry out HPI checks, as do many auction houses. But it's really in the private sector where the dangers lurk, say experts.
The law does allow for victims to claim a defence of 'innocent purchaser' if they have been duped into buying a truck that's under finance or has been stolen. But it's a difficult position to defend and means going to court to explain all the circumstances surrounding the purchase.
The key issue is whether the buyer can prove that they had no reason to be suspicious. This can be difficult, as the onus is on the buyer to exercise as much caution as possible. And even if a customer does win the right to hold on to a vehicle, the finance house may still have a claim to a share of the value when it's resold, says Brassell.
"People do succeed with the innocent purchaser defence on occasions. But from our point of view it's only a possible cure, rather than prevention. It's by no means something you should rely on."
Trailers
If a routine check shows a vehicle is under finance, the buyer can just walk away, or negotiate a settlement with the finance company directly.
The dangers, of course, don't just apply to tractor units. Trailers too can be bought by unsuspecting buyers while they are also subject to finance. One of the problems with trailers is that they do not have a vehicle identification number. Instead, HPI depends on a number of identifying factors to check their history, including the number given by the Vehicle and Operator Services Agency when the trailer is plated.
"Finding the right identification for a trailer can be difficult," says Brassell.
HPI claims to hold details of almost every motor finance agreement in the UK. If any are missing, it's because the finance houses have failed to supply the information. And for just under £40 per vehicle, it could be money well spent. •