I'm in the process of selling my 1098 (advert will be posted once the reg no is transferred) and looking for good second hand 1199 (to my other half's dismay!). Now as I'm sure most are aware buying and selling is a nightmare, but I've done it a good few times before so I think I'm quite savvy and can spot the good from the bad and ugly and know how to check all the paperwork, HPI and make the relevant checks for outstanding finance etc, but how do you check if a vehicle is subject to a log book loan as it doesn't show up on a HPI check and these companies are the next notch up from loan sharks!?. This is where a person who usually has a bad credit rating or find themselves hard up obtain a loan that is secured against their vehicle and they hand over the log book to the loan company as security. If they default on the payments the loan company claims the vehicle. The problem is under some ancient 'Bill of sale' law the debt stays with the vehicle so the owner can apply to the DVLA for a replacement log book saying it's lost then sell the vehicle and not declare to the new owner any money is outstanding and not pay off the loan company. The loan company is then quite within their rights to come to the new owner and demand the outstanding amount or seize the vehicle!. See the problem!? Any thoughts?
Some checking companies offer insurance against loss, even if the vehicles has an unregistered log book loan against it, so you can claim against that if it turns out there's something dodgy about it. According to Parkers, anyway... Car buyers warned of unpaid loans | Parkers
