This is a bit of a strange question but here goes:-

If I buy a car from a dealer/garage, pay in full and drive off with an invoice/receipt and the New Keepers section of the V5 then legally is the transaction complete and the car 100% mine in the eyes of the law?

I know it's a weird one but nonetheless advice and thoughts would be appreciated.

Thanks.

yes the car is leggally yours , a receipt is legal proof and notice of purchase.

why can i ask ?

Yes, it's legaly yours alright, but ensure that invoice shows that you have paid 'Cash' in full

If it was purchased from someone identifying themselves as a Motor Trader you are also covered with at least 3 months basic warranty, (although that dos'nt cover much and should'nt be relied upon)

They might try and get around even this on a cheap car by stating it's 'Sold As Seen' - but that is of dubious legality and the vehicle should still be basicaly 'Fit For Purpose'

- On the other hand, if you were concerned about any past outstanding finance on the car, then a legit Motor Trader should have checked this already before putting it on sale.

If you want to check yourself, then it only costs £3 for a quick text to 83600, (others are available, e.t.c.)

If you still do somehow end-up buying a vehicle with outstanding finance, you may well get threatening letters from the finance company/their solicitor, but providing that you bought the car in good faith, (it helps alot to keep the invoice) then they can't really touch you.

if there is outstanding finance on the vehicle then you will not own the vehicle regardless!! neighbour had their Range Rover taken from them, because it was sold on and finance not paid off. the Finance company advised them that they could pay another £9500 to keep the vehicle which they declined! Hence they lost the car.
Doesnt matter if you bought in good faith or not. Finance vehicles are sold so that you do not own the vehcile and last payment and fees are made

Ade

Doubtless the finance company was happy to ask for money or take away the vehicle from the new keeper - they will try threatening letters and imtimidation get the money owed in any way they think they can get away with. Obviously the amount involved will determine how hard they try.

However, that dos'nt mean you have to co-operate with them - their agreement/contract was with the previous keeper, not you and it's upto them to pursue the person who actually owes them.

If they are unsuccessful, they can 'sell-on' the debt to another less-polite company, but the debt is legaly still owed by the original customer.

no you will find the the sale is normally called "hire purchase" which means the vehcile remains the proprty of finance company untill sums paid...regardless of whom the agreement is with.google it my friend and you will see i'm right!..but thats only if the vehicle was taken on finance..not if a loan was taken to pay outright for the said vehicle

Ade

Dont believe everything you read on google/internet. If you have the V5 the car is yours and no-one can take it away from you (except police etc)

I agree 100% with Ade. The car isn't yours till until the final payment has been made to the hire purchase company.

A bank loan or similar is not the same, so doesn't apply to the above.

Ade is right.

v5 does not prove your the owner of the vehicle- it just shows who is the registered keeper!

you will find that i'm right in what i explained earlier regarding hire purchase.

Anyone else care to back me?? :p

Ade

Ade is correct. I used to work in the industry and this happens at an alraming rate.

If the car was taken out on a Hire Purchase Agreement (and still has finance outstanding when sold), the car was never the sellers in the first place. Therefore if it's found, the lender will inform the police (I think) and will then start proceeds to reclaim their loss (i.e. Get a truck to pick it up).

Had to deal with several angry people who were conned this way. Felt sorry for them, but for me, cemented the reason to get a HPi check on any car I buy.

It's like someone stealing your car and selling it on. You'd be livid if you found it, reported it to the police and they say 'Sorry chap, they filled out the V5'. Probably not the best example but the fundamentals are there.

You can still buy a car with finance outstanding, but you'd need the seller to get a settlement figure and pay it directly to the finance company.