Quick Answer
If you unknowingly bought a car with outstanding finance, you may keep it under the Hire Purchase Act if you bought privately and in good faith. Otherwise the lender can repossess it. Contact the finance company, gather your paperwork, and get legal advice for larger sums.
Do you get to keep the car?
If you're a private buyer who bought in good faith — with no reason to know about the finance — the Hire Purchase Act 1964 can give you good title, meaning you keep the car and the lender pursues the original borrower instead.
This protection doesn't apply to trade buyers, and you may need to demonstrate you took reasonable steps and had no knowledge of the finance. If you can't rely on it, the lender (who legally owns the car) can repossess it.
Steps to take now
- Gather proof of purchase — advert, receipt, messages, bank transfer
- Contact the finance company to explain you're a good-faith buyer
- Don't hand the car over without understanding your position
- Try to contact the seller to settle or recover your money
- Get legal advice if the amount is significant
- Report deliberate deception to Action Fraud
Check finance on your next car
Never get caught out again — check any car for outstanding finance before you buy.
Check finance on your next carFrequently Asked Questions
Will I lose the car straight away?
Not automatically. If you bought privately in good faith you may have protection under the Hire Purchase Act. Speak to the finance company and, for large sums, a solicitor before giving anything up.
Can I get my money back from the seller?
You can pursue the seller, but recovery is difficult if they've disappeared or have no funds. This is why checking for finance before buying is so much safer than relying on remedies afterwards.