I see so many comments saying “what a friend you are…” “refund him his money” etc... I wanted to clear this up. Firstly (and importantly!) he didn’t want to sell me the car back. His trade in offer was better than the price he paid me. Secondly, the car changing owner and another V5 being issued would have almost certainly complicated things quite a bit more. And very possibly have been illegal! Third, this was not a long process. It took around a week for the rogue finance company to determine they were going to get nowhere trying to recover the car in Scotland and chased the original owner for the loan - as they should. We remain good friends to this day and it certainly harnessed no bad blood between us! If buying the car back would have helped the situation and he wanted me to I would have. In reality, it would have made things more difficult.

People are just so dense aren't they? The finance company has no claim over the car. They financed it AFTER it changed ownership because they lacked due diligence. It clearly says on a V5 that " this document is NOT proof of ownership". It is the finance company that was scammed/defrauded, not you or your friend. That is to say, thay had no right to register an interest in the vehicle as the person did not legally own the car at the time he took out the loan. Therefore, they must remove their interest. Nothing to do with you. Their problem.

In England & Wales, people are unaware of their rights. Section 27 of the Hire Purchase Act of 1964 was designed to address just this issue and is still in force. If you buy from a private seller (not a motor trader) and are not advised of outstanding finance then you gain "good title". All these finance companies and agents rely on people's ignorance of the law. If one comes after you to try to repossess the car because of previous unpaid finance which you were unaware of, you can quote section 27 of the 1964 Hire Purchase Act and send them on their way.

Surely the law should state that if the car was legitimately sold with no finance to new owner.... proved with a receipt... Then the issue is then only between the seller and finance company as the seller lied to them.... He did not own the car and cheated them ?

I am not into law but how I understand it is that the finance company got scammed NOT you. You brought a legitimate car with no finance on it at the time. He then scammed the finance company into believing that the car was his after he had sold it. The finance company should have done it's homework! I can't understand how the finance company has the right to reposes the property of a third party when they should been going after the seller!!!

Top Tip - Start the process of transferring the ownership via the online process, input the v5 ref number. If it goes through, pay the money and complete the process. This only works between 7am - 7pm so buy the car well within this time frame. If the v5 ref is incorrect it won’t let you proceed which should be a red flag.

If you had added the V5 doc reference to the HPI check you paid for it would have told you the V5 was not the latest one issued... Adding the V5 document number and the VIN (as witnessed with your own eyes) would have meant getting the full HPI insurance...

Carnt believe he’s let his mate now deal with it. If it was my mate who did that to me I wouldn’t speak to him again

NB on the online DVLA registration when selling; the portal closes down at 7pm every evening, so make sure you do the deed before then.

"V5C is not a proof of ownership" - this is a mantra we are being told every day. But then, what bugs me is that your purchase of the vehicle preceded the loan secured against it. Therefore the onus was on the loan company to check that they are dealing with a true owner of the car, rather than assume that he owns the vehicle just because his name is on V5C. And this rule/law should work regardless of which part of the UK you are leaving. If you buy a stolen good, it does not make you an owner just because you paid for it. Similarly if a loan company paid money to someone who is not owner of the car, it should not make them a legitimate owner of the car. Why the loan company has more powers in the eyes of the law, remains unclear to me.... How do they prove their ownership of the car? (Don't tell me that they use V5C...)

I thought it was a bit low dumping all this on a ex friend . When you sold it as a clean car

I've had DVLA send me 2 V5s 4 times in the last 20 years. I got 3 V5 turn up on a old Cmax i bought in 2010! I thought it was a common issue with the DVLA lol

Imagine doing this to your friend. Hardly anyone in the comments has picked this up. Crazy

You should of paid your freind back for the car that is the right thing to do as you bought it the loan was probably taken out when you still owned it Do the right thing pay them back for the car it's on you it's your freind

Another- LOG BOOK loans they’re called where people take out a loan with the v5. Shouldn’t be allowed!

I bought my first car in August last year from a private seller. The V5 I was given didn’t work. It turned out the guy gave me the one from before he moved address. Fortunately it was a simple mix up and he sent me a photo of the most recent one, but as someone who had never bought a car before it was very frustrating and confusing! Next time I’ll try and do the transfer while I’m still with the seller.

struggling to understand the finance company position - if the finance was taken out AFTER the sale to you, then their customer didn't own the asset that was secured, so where's the relationship between the car and the finance company? Imagine if I just picked a random car on the street and they loaned against it, no chance they had any legitimate interest in the vehicle?

May-be this is one good reason to buy your car from an established dealer I know you may pay more but will be covered by trading standards and the law, there is always a reason a car is cheap...

You aren't alone mate I bought a mk 5 GT TDI and i plugged it in to my laptop and it turns out she's running on one glow plug the other three are dead she has a a big boost leak on it the hand break is shot to shut and she still gets 65 mpg and the steering rack is laughable for now. oh turns out the engine is a BKD best 300 quid I ever spent. Love it

When you take out a log book loan the company comes and see the car before any loan is paid out.😮

Trust no one not even a dealership where money is concerned people will cheat anyone

I had NEVER considered this. Scary. Thanks for the video bringing this to light.

Well done Scotty, you came to the point very quickly....great.

Thanks for bringing this issue to light. Never knew that was a thing before.

Never knew it was possible to take out finance on a used car with no debt?

You can now check when the last logbook was issued via the government website. It might be a good idea to check that the dates roughly match on the logbook to the one online. I had a similar thing happen when I purchased a van from an auction, the vehicle supposedly had one previous owner. Silly me I didn't check the logbook as soon as I bought it, someone came to view that van and the logbook had been tipexed over, I then tried to transfer it online into my own name but DVLA said it wasn't the most up to date logbook. I ended up sending off the logbook with the receipt but unfortunately when it arrived it had an extra 2 owners on. You must be extremely vigilant in the motor trade even more so when buying from auction!

Great video Scottie, nice to see some honest trader advice.

Years ago, I bought a Peugeot off a local car dealer/ garage ( before there was such a thing as a HPI check. Paid a thousand pounds for it. About a month later two repo chaps turn up and showed me there was outstanding finance on the car. They thought I’d bought it of the chap who had the finance on the car. I showed them the garage receipt, so even though they took the car, they went to the garage to do a check on other vehicles they had for sale. Had a bit of an altercation with the owner and a few “ heavies” as well. Anyway, they returned the car to me saying the finance company would deal with me directly. Next day when I returned home from work the wife handed me an envelope. Inside was a thousand pounds from the garage owner, who thought the car had now been repossessed. Hmmm what to do ? Well I kept schtum, put the money back in my bank account ( just in case). A few weeks later the finance company wrote to me saying if I paid them £400, I could legally keep the car. Found out later the previous owner had been stopped and breathalysed and had subsequently got banned, so sold the car to the garage never mentioning outstanding finance.

Hi Scotty. I'm a new subscriber from Galway, Ireland, and I love your channel. Thanks for all the useful info and advice. Chat soon 😅🇨🇮👋👋

It makes you wonder what side of the law these log book loan companies work to, because it clearly states on V5 (or it definitely used to) that the registered keeper is not necessarily the legal owner

Great video Grant. I'm lucky that I have never been bitten (yet) by one of these scams. Regarding Vehicle Score speak to to your contact there and tell them that you want the same 20% discount that Shifting Metal channel offers. Their free report is great but their other more in depth reports are much better.

Many thanks for your advise, there are many scammers out there all waiting to pilfer your money and car! I will take your advise to check the Log book online, cheers 😊

i bought a car about 5 years ago from a car sales it had a private reg on it and it was a hastle to get the original , i thought they could have put the original back on before selling it and it took 2 months for the v5 to come

I'm in Wales and some how I ended up with two V5 forms for a car we had for years. When I sold it, I bined the second one

Thanks for your good advice regarding doing a private sale To fill in the digital Documents of the vehicle, and if any issues, it ll flag up there and then before you go out the door. And uther people's should Be adamant and doing it this way. Not the old schoolway Because you could be getting scanned To close down those doors right away

Great advice thanks for sharing 🤞😉

Lots o scammers selling cars be very careful, i got done twice never buy a car privately again. Rather pay extra to a dealer at least you covered under the consumer act.

Isn’t there anything on the V5 to indicate that it has been replaced? How did the second v5 get issued without the original being returned. I think that the DVLA needs to include the V5 status on the “check a car” web page.

What would happennid you changed the reg plate after purchase? Would they still chase that car?

Good video, I highly expected advertising throughout. Fair play ❤

Great video👏🏾

It’s still fraud, the seller should have be reported!

Thank you for sharing. It's interesting that the online DLVA V5C transfer service only operate 7am to 7pm. Maybe worth avoiding an evening handover?

V5 only records the “keeper”. Ask any lease company. If you have a “bill of sale” or even just a witness of the purchase, then unless the vehicle was stolen at the time of purchase then the vehicle is yours. Anyone who takes a v5 as proof of ownership is sadly mistaken. This is the reason for an HPI check as a leased vehicle you may have the v5 as keeper but you are not the owner.

i bought a used vauxhall van from a vaxuall gargage paid out right for it 5 months later van got nicked insurance said wouldnt pay out as it had outstanding finance rang the garage luckerly they sorted it .....mistakes do happen

Hi I always do the online change of keeper with the seller at point of sale, one thing I will say is surely if the finance is taken out after you have purchased the vehicle it is then the problem of the finance company, if you are the legal owner of the vehicle no one else can apply finance to it after you become the legal owner regardless of who's name is on the document, it clearly states on the registration document that the keeper may not be the legal owner of the vehicle, for example you may possess a document for a car as this seller did but he has already entered into a contract to sell the vehicle to another party, if he then takes out finance after the sale he has defrauded the finance company as he is no longer the legal owner of the goods , in this case the finance company are responsible for the loss , if you have done a HPI check on the vehicle before handing over your money you have done your due diligence have tangible proof that the car had no finance in place at point of purchase and therefore someone has commited a fraud the finance company should be chasing them for their losses, not the legal owner of a vehicle !

😂😂😂 f**king hell who needs enemies with a mate like this guy 😂 Clearly haven’t intentionally scammed your mate but you ain’t the one out of pocket in this scenario & your mate left high & dry

It really annoys me that most of us are genuine. I have bought cars and asked the boy not to take insurance off till I get it home (I know it's no legal lol) but it's good faith in people and you get the couple scammers that don't care about anyone but them selfies and ruin it for everyone

The seller who sold the car to you then refinanced the car he had already sold you committed fraud and theft. Thanks for the heads-up about good title .

Siit back and laugh (at the loan company) if loan taken out AFTER you bought the car.

The finance isnt on the car from what you describe. If you can prove that you were the legal owner of the car when the finance was taken out then he simply defrauded the finance company and they failed to do the relevant checks. Never give finance company's a penny unless they can prove the agreement is solid. Put it like this, if you bought a house and then the previous owners took a mortgage for your house and the bank failed to do the relevant checks, you wouldnt buy your house twice....

Perhaps DVLA should make available the ID of the current V5 form to prospective buyers. This can be checked with the slip. Perhaps you should share some of the moral responsibility of this scam with your mate.

I will not part with any money untill ive changed ownership on line if you sugest this to the seller and he starts faffing about just walk away

How can you be a car channel and not use a car checker before buying it? So baffling when they’re the sponsor of a lot of KZfaqrs.

Well you could not really avoid it in that situation if that was a 1.6 petrol zetec some family with probably just a afford to run in it never mind the debt

How did the finance company lend this seller money on a car he didn't own? Doesn't the finance company have an obligation to make sure who owns the vehicle they are lending money on?

With your friend if they bought the car from you without HPI check knowing that you are a friend, you should offer to meet them half way at least and full way for the legal battle. Otherwise, you would have been the one to lose out!

How did you tax the car with the invalid v5c/2?

I didn’t know finance company’s would finance a car less than 10 years old?? Can someone school me on this

Doesnt this high light buy from a reconised dealer?

It’s your fault for not cross checking the v5 number with the hpi report

You should name and shame , give the city and area, if the guys has done this what else could he be doing , clearly several thousands for some is minor , for many it's years and years of saving money

I bought a Mercedes 2013 ,spares and repair. Purchased from Ebay. Did a hpi after i bought it ,was a finance marker . Spoke to finance company ,sent them all the detail of sale and financial transfer and bill of sale. I was lucky ,as it was a private sale. After 30 days wait the finance company ,removed their intrest in the vehicle . Good end to a stressful few weeks. Private sale and not from a car dealer saved me . I had good title.😊

Interesting - the only scams I've been caught with involved rose-tinted specs on my part. Amazing how rust suddenly materialised when I got the car home! To the point - the finance company should know who this cheeky chappie is. They would have had to perform a number of checks to complete their processes so he/she would not have left quite a trail to follow. Given the asset has passed through some hands in good faith, and the finance couldn't have been taken out in your name, it is surely up to the finance company to pursue the debtor.

Can the dvla not set up a v5c check on line to check it's the latest v5c that would stop it

I transfer the V5 right there and then as soon as i get the code from the new keepers slip on my mobile

Oh no.

Naughty naughty!! Frauds a serious crime and carrys prison time 😂 any idea on what happened to the dude? Id of thought they would of wanted to see the car before paying out a loan on it

Online transfer is only available at certain times of the day and week from last time I used it…. Unless it’s now changed. 8 months ago!

Had you bought the car from the seller’s address? Was fraud committed?

Disgusting

Good mate you are brushing your hands clean...

Makes no sense if the guy took out finance on the car after he sold it to you. How did you not know about any of this? Surely your be getting something in the post saying you owe the finance company money for the car whos been paying the finance? The scamer?

Swear i saw this few months ago.

Oh and remember v5 isnt proof of ownership!

Why not do the transfer at point of sale Job done

CC = 33. Proof of all CLAIMS Required.

Stoppwd watching as a hpi report is not going to do much for u

Could you take the finance company to Court. If you use the evidence of when the car was registered to you on the DVLA providing it was the from the next day onwards that the guy sold to finance company. Then technically and legally it was yours when the other guy set it up for finance and that evidence should stand up in court and also prove it was yours. You may have to take a private case against them. That will prove you owned it before he sold it to the company. Then the finance company will then have to chance the guy that sold it to the finance company. If everythings done by bank transfer it will also prove that the bank accounts used to transfer money to company is not your bank account and name on the account and you can show a record of this with a statement of your bank account. Food for thought.

Your not a very good friend bro. You should have offered to give your pal his money back and sorted the problem yourself. As to your so called friend your a bad bad toad

I don’t buy private simple as that don’t trust anyone

6:30 yeah there are a lot of Mohammads out there.

You’re not a very good friend saying the issue is between your friend and the finance company! The only reason he didn’t do an HPI check when buying from you is because he thought you were a friend, clearly not! You got conned and he’s having to pay for it! Glad you’re not a friend of mine, can do without friends like you, give him his money back!

Are you saying when someone re-finances a car do they always get a new V5? Also doing it online will definitely stop the seller immediately afterwards from re-financing it?

He stitched up his mate

Shame him with a photo

💪🏻💪🏻

you don`t half go thru a LOT of car`s considering your NOT a trader🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

a) You I'd say you are a mean mate saying it's his problem not yours, if it was my mate it would be BOTH our problems! b) We certainly do have 'good title' in England and no way should you give in to the finance company or bailiff bullies, BUT you ONLY get good title IF you can PROVE you acted reasonably, for example you paid a reasonable price, you had no reasonable reason to suspect there was anything amiss (IE cheap price, quick sale, met on a layby etc) AND you did the full HPI checks and research, there's no absolute certainty of good title at end of day if you and finance company can't agree its up to the court to decide, but till then it's your car.

Don’t add up I’m callling bullshit. If you taxed the car you’d know it’s not an up to date V5 also you’d then have to tax it at the post office with a V62 and then once the ford ST is in your name and address the finance company would have contacted you in regards to the debt that’s outstanding. You passed the headache onto your mate knowingly as you didn’t want to be caught up with a car that’s got debt

This is a repeat

I went to buy a ginetta g40 and the seller said I could get the v5 too but only if I paid an extra 500 Was that legal?

correctly fill out the hpi in future theres a place for the doc no, and its not realy a situation YOU are in as youve left it to your friend 💩 ! maybe stop acting the whiney victim as YOU got everything YOU wanted out the deal 🙄

😮 it was your car u got scammed then you scammed your mate give his money back u earn enaff from KZfaq pal

Yeah don't ever buy a vehicle off a dealer. So many of them are criminals.

You sold a car having not done due diligence checks , and are now saying its not your problem its the person you sold it to,s problem . Well in my eyes you are just as bad as the refinancer in the first place , your scamming your mate . Give him the money back and deal with the car and its problems yourself.

Ring your mate and take responsibility your fault

The first thing to do don’t buy off a person that has not got a English name And is not a Englishman

Bit of a strange story (to me) this one ..