Purchasing used cars are appealing to many especially those that want good cars but have restricted budget. There shouldn’t be any problem as long as you make a DVLA check and make sure that the car is registered correctly. However, there have been a number of incidents where second hand car buyers have been unable to see that the car they purchased is under a logbook loan. Unfortunately, since the car itself secures this kind of loan, the loan stays with the car no matter who the new owner is. This means that the new owner would have to pay back the loan or give up the car to the logbook loan company.
There is an increasing number of people falling victim to second hand car financing issues. An investment with this kind of problem would surely give more headaches than benefits. This is also one reason logbook loans are said to be outdated and more dangerous than beneficial.
How Does This Happen?
Some car owners who are into a lot of financial trouble take out a logbook loan and then sell their vehicle immediately without paying for their debt on it. If you are at the buying end and you don’t do all the necessary checks, then you become the victim that doesn’t have a lot of easy options ahead.
What Can You Do?
If you suddenly get harassed by a loan company demanding you pay them back immediately and you don’t have any idea why then a logbook loan on your used car purchase could be the culprit. If you don’t pay the logbook loan company, they will repossess your car very easily. You can try these things but it would not be easy.
– Check their credentials. See if they are a valid logbook loan company and get all the details you can including the name they gave the loan out to. Also ask them to show you the bill of sale and check with your local Citizens Advice to verify if the bill of sale is valid.
– If the credit company takes the car from you, you can try to get your money back from the seller. If it proves to be time-consuming and you feel that you are not going anywhere with negotiating with the seller, you can take him or her to court. Just be sure to get independent advice first before doing that so you know what your chances are and you avoid wasting anymore of your hard earned money.
Again, stressing that these are very hard steps to take when you get into a problem like this. It’s always best to prevent this kind of issue by making sure everything is in order before buying a second hand car. Always check the seller’s credentials, the condition and mileage of the car and know as much history as you can about the car. When all else fails, let go before you dig a deeper hole that you were not supposed to be in in the first place.