logbook loans, what they didnt tell u

[shelaghmk3gti]

watched something on TV that stated that logbook loans will never show up on a HPI ( or similar) check.
so no matter how carefull you are the bailiff can and will take the car as if payments are defaulted on by the seller /previous owner ( and youd never know that a loan even exisited).. then of course it becomes the property of the company that issued the loan.
what makes it worse is the fact that these type of loans are so easy to obtain and of course with interest rates around 1470%++ they are never going to be easy to repay

beware second hand car/bike buyers!     

any views/opinions?

[JC]

yep all very simple

they loan against the LOG BOOK. as in they take it off you until loan is repaid.

if you buy a car without the log book then you are a muppet.

Cheers Easy

 

[shelaghmk3gti]

ah so they actually hold the V5? cripes, not so tricky to spot afterall then. unless a new one was applied for with a lost /destroyed reason? or do the DVLA intervene and hold records?
im confused as to how easy it seems to be able to shaft an innocent buyer in this way 

[JC]

lets put it this way, and is just my view

 if you are that desperate for cash, then perhaps running a car isnt the right option anyway.

and if people want to rip you off when selling motors there are a lot easier ways.

[shelaghmk3gti]

lets put it this way, and is just my view

 if you are that desperate for cash, then perhaps running a car isnt the right option anyway.

and if people want to rip you off when selling motors there are a lot easier ways.

sorry i think you misunderstand, im not or wouldnt have this type of loan, just saying that after the tv programme it all seems to be working badly in the direction of 2nd hand car buyers, but totally agree with you were you saying buying without a logbook is a mugs game

[JC]

didnt say u, I said the principle thereof, 

[danny_p]

nothing rong with buying cars without logbooks.

the logbook itself  dosent actualy say who owns the car but who is resonsible for its as in taxing insureing and paying fines.  its quite possible to have posetion of a car and it's log book when the car isn't actualy yours ( finance )

but i see nothing wrong with it as long as you apply the apropeate price correction factor       

[shelaghmk3gti]

hmmmm thats true

[Luke1981]

It would be a very very dark day before I used a payday company! Absolute rip off merchants!
Better regulation is required.

Its a double edged sword though, if they were banned then people would use illegal loan sharks!

Always live within your means   

[bob23]

I'd just argue that the person who took the loan out was not the owner at the time the loan was taken out, that I was, that they were the registered keeper, not owner and never had my permission to take a loan out on the car, that if they were stupid enough to give someone a loan against a car they never owned, then it is their problem, that they should do better checks before approving loans, if that failed I'd just burn it out, claim on the insurance and tell them to do one.