Vehicles - Ownership

A common area where disputes about ownership arise is where the owner of a motor vehicle discovers that it is still under hire purchase agreement and the seller therefore has no right to sell the car in the first place. The buyer may face demands from the finance company for return of the vehicle. Does the buyer in these circumstances have any right to keep the car?

Under the Hire Purchase Act 1964 a buyer will get good title to a car which is sold when it is still under hire purchase if:
1. The buyer did not know the car was under hire purchase and therefore bought the car in good faith believing the seller had the right to sell it.
2. The buyer is a private buyer and not a dealer or finance company.