car previously sold under suspicious circumstances

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Mon 7 Mar 2011 21:01
car previously sold under suspicious circumstances - likerocks

Hello,

I bought a used car earlier this year from an independent dealer. I have had the car for 3 months and had a knock on the door last Friday night. It was the Police and they wanted to inform me that my car had previously been sold under suspicious circumstances. Apparently an employee of the previous (company) owner sold it without their consent. this has been rumbling on as a Civil matter since November / December last year but now an official compaint has been made to the Police and the CPS have agreed that a criminal offence has taken place.

I'm guessing that the switch from civil to criminal law was prompted by the previous owner finding out there was a new registered keeper.

The Police asked me to sign a statement stating how I came to be in possession of the vehicle, also to acknowledge that I would be committing an offence if I sold it and finally they wanted permission to pass my details to the previous keeper so that "arrangements" could be made. I declined the final request as I don't want to make it any quicker or easier for my car to be taken from me.

As I said previously, I bought this car from a dealer who is I think the 3rd dealer in a chain who bought it from the individual who wasn't entitled to sell it.

The car was and is HPI clear and the Police verified that it is not recorded as stolen. Is this significant as I know stolen cars can be immediately impounded and returned to rightful owner? Is it any different in this situation?

What grounds do I have for refusing to hand the vehicle back as a bona fida buyer?

Who would I approach to get my money back - dealer who sold to me, or the dealer who did not check his seller's credentials properly? I'm guessing that the original fraudulent seller will be difficult to track down and or insolvent....

Could I claim negligence on the part of the "victim" because they provided a car, 2 sets of keys and logbook to their employee and didn't report the car missing for 3+ months ?

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Tue 8 Mar 2011 06:30
car previously sold under suspicious circumstances - LucyBC
Principles of Nemo Dat apply. The basic rule is that a person cannot pass to another property he does not own.

The car goes back to the last owner with good title. (Rowland v Divall where plaintiff bought a car from the defendant who was not the owner. Held Rightful owner could recover car.)

You have a civil claim against the dealer and then it goes back up the chain. The exception is if there had been HP on the car in which you would have developed good title if you could show you were an "innocent purchaser".

I see you have emailed me and will answer in more detail there.
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