Logbook loans are usually recorded on a database called the HPI Index, which anyone can check before they buy a vehicle. Car dealerships should also check this index.
Once a vehicle has been bought with a logbook loan, the vehicle doesn’t belong to the ‘owner’ until the final payment has been made. It’s against the law to sell the vehicle before this time.
If the vehicle’s sold before the logbook loan is paid off, the loan company could:
Take legal action against the seller
Repossess it from the new owner, without the need to apply for a court order
If you’ve bought a car from someone who still owes money on a logbook loan, you can take court action against them to try to get your money back.