i have a mate who has a discovery 2 he wants to sell. it is still on hp, can i buy it from him and not get the hp transfered to me? or can he not sell it?

[Edited on 13/5/10 by boggle]

I believe that at some time during the transaction the HP has to be paid off by the current owner. It's an agreement between the current owner and the HP company, and the car's the security against the loan. The loan won't be transferred to the new owner, but the company can claim the car back if the loan isn't settled.

[Edited on 13/5/10 by David Jenkins]

You can buy it from him but when you pay him pay the amount of the outstanding finance direct to the finance company and the difference to him. Make sure you get the final figure from the finance company so you understand exactly whats owing. The hp company can come and legally take it away if you dont.

James

With HP the driver doesnt own the car until the final payment and Admin payment has been made he is mearly Hireing it

So if he sells it to you he is selling a car he doesnt own.

The car belongs to the HP company, not him, until the final payment has been made. Therefore, you can not be the legal owner by buying from him as he has not got legal title. He is committing fraud by posing as the legal owner and ultimately the HP company could snatch the car back from you with no redress

The clue is in the title HP - Hire Purchase.

your mate is only hiring it until it is paid for when the title passes to him.

To be honest this is exactly the sort of thing that causes the break up of good friendships. Once you have the car the previous owner views it as a pain that he has to keep paying and it is easy to default, then as said above the HP company reposses from you

dont buy it. if he stops paying they can apply for a warrant to get the car uplifted which means it appears as stolen to the police.

be careful

Yes, but if if the final figure is paid to the HP company on the day of your purchase it's equivalent to him buying it from the HP company (with your money) and then selling it to you (for the remainder - either + or - depending on what it's worth and how much the final figure is).

But it does require you making 100% sure that the HP has been paid in full so caution is good, but it's quite achievable if you want the car.