>Do a check with a firm like HPI and you'll be fine
I am not quite sure that I understand the definition of 'fine' here, I am afraid SLO76.
If a logbook loan has been taken out against a vehicle and the debt not paid then the loan company will attempt to takeback the car, regardless of who owns it. They will just get the registered keepers details from the DVLA and rock up at the supplied address, perhaps with a spare key in hand or with a tow truck.
If they see the car they will take it.
Then you will have no car.
You would then need to go back to the dealer (if they are still around) and tell them what happened, showing all the various paperwork given to you by the loan company when they did the snatchback.
Or go back to HPI (for example) if you did the check with them and state the position.
But be aware that I would check check and double check the small print of any T&C's here in case there is something along the lines of "xxxx can only advice you of any parties interest in the vehicle if the party has notified xxxx. No liability or claim will be entertained by xxxx if the interested party has not notified xxxx of any interest in the vehicle."
where 'xxxx' is the name of the agency you did the check with (HPI would be one example, but there are others).
If there is such a condition then they will just turn down your claim and say "well it wasn't on the register/the loan company didn't add it/got the reg no wrong so there's no claim against us. we just gave you the information we held on our register. Thanks, bye."
Now you have no car and little/no comeback.
Even worse is if you have spent money on car whilst it was in your possession.....
Call me cynical, but these are real problems to the car buyer and trader at the lower end of the market (I whole-heartedly agree the sub-£2k level is likely to be most afflicted here, but it affects the market as a whole I should imagine).
I bought a sub-£500 car earlier this year, no problems with that. PO had the car for 5 years, was an accountant, explained to me the reason for sale, house was nice, took me to see the car, was straight up about the problems that the car had and what had been rectified, only 3 owners in 18 years.etc. etc. I didn't bother with an HPI check, my gut feeling was that this was an OK motor was enough. 6 months later it is still on my drive, hasn't broken down and no-ones' attempted a snatchback.
On the other hand, someone who has the V5 in their name and then after 1/2/3/4/5...x months sells the car with excuses like "my wife/sister/auntie doesn't like it" should ring warning bells.
Or they could have it 2 years, then do a log book loan and then sell it, I agree, it could happen. Vendor heads down Desperation Street...
caveat emptor. caveat emptor......trader or private, caveat emptor.....
Be cynical.
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