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Curious re HP scenario

  • 21-03-2008 1:32pm
    #1
    BigCon
    Closed Accounts Posts: 1,836 ✭✭✭


    Curious to know where a consumer would stand in the following hypothetical scenario:

    A person buys a car on a HP agreement.
    After a couple of years the person agrees a trade in against a newer car and the dealer figures out what the new repayments will be on the new HP agreement.
    The person takes delivery of the newer car and gives the dealer the old car.
    Now, suppose the person was refused a new HP agreement by the lender and the dealer had already sold their car, where would the person stand?

    If the dealer let it run for a long time with the person still making payments on the old car he had sold to someone else, while all the time the dealer was looking for a settlement from the person to pay for the new car, what would the likely outcomes be?
    Is it legal for a dealer to sell a car with finance still owing on it?

    p.s. Not looking for legal advise.


Comments

  • #2
    Tom Young
    Legal Moderators, Society & Culture Moderators Posts: 4,338 Mod ✭✭✭✭Tom Young


    It would all depend on the HP agreement and the clauses therein. I'd have thought that it would be very problematic for any person to break a HP agreement without completing the term and terms on consent or with the consent of the lender. If consent is not in place then the seller or person engaging in the HP agreement with the lendor might have acted ultra viresthe terms of the HP agreement or contract. This could result in no further offers of HP.

    If the dealer does not know that the car is under HP then he may make a mistake and sell the car based on the fraud perpretrated by the seller. The log book and documentation all being in order however may place the dealer on notice of the issue or ownership.

    Tom


  • #3
    BigCon
    Closed Accounts Posts: 1,836 ✭✭✭BigCon


    Thanks for the reply.
    Lets just say that the dealer knew there was finance owing on the first car and the intention was to combine this with the finance which would have been on the new car.

    Then the finance is refused and the dealer has already sold the trade in car to someone else (still with finance on it on the assumption that it would be cleared when the finance was received for the new car - which would be refused).

    Is it against the law for a dealer to sell a car with finance owing on it?Where would a person stand, if they continued to pay the finance on their traded in car and after a period of time (say a year) the dealer starts playing hardball, looking for either payment in full for the new car or threathening to take it back?

    Would the person be entitled to their original car back (which they almost own at this stage) as they continued paying the finance on it?


  • #4
    Our man in Havana
    Closed Accounts Posts: 29,473 ✭✭✭✭Our man in Havana


    It would be a very messy situation indeed, which leads to this question:
    Would a finance company need to get a court order to seize a car on finance that was sold to a unsuspecting third party? Or would they be only be able to persue the original buyer?


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