Changes to legislation: There are currently no known outstanding effects for
the Hire Purchase Act 1964, Section 27. (See end of Document for details)
Hire Purchase Act 1964
1964 CHAPTER 53
[F1PART III
TITLE TO MOTOR VEHICLES ON HIRE-PURCHASE OR CONDITIONAL SALE
[F127 Protection of purchasers of motor vehicles.
(1) This section applies where a motor vehicle has been bailed or (in Scotland) hired under
a hire-purchase agreement, or has been agreed to be sold under a conditional sale
agreement, and, before the property in the vehicle has become vested in the debtor, he
disposes of the vehicle to another person.
(2) Where the disposition referred to in subsection (1) above is to a private purchaser, and
he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase
or conditional sale agreement (the “relevant agreement”) that disposition shall have
effect as if the creditor’s title to the vehicle has been vested in the debtor immediately
before that disposition.
(3) Where the person to whom the disposition referred to in subsection (1) above is made
(the “original purchaser”) is a trade or finance purchaser, then if the person who is
the first private purchaser of the motor vehicle after that disposition (the “first private
purchaser”) is a purchaser of the vehicle in good faith without notice of the relevant
agreement, the disposition of the vehicle to the first private purchaser shall have effect
as if the title of the creditor to the vehicle had been vested in the debtor immediately
before he disposed of it to the original purchaser.
(4) Where, in a case within subsection (3) above—
(a) the disposition by which the first private purchaser becomes a purchaser of
the motor vehicle in good faith without notice of the relevant agreement is
itself a bailment or hiring under a hire-purchase agreement, and
(b) the person who is the creditor in relation to that agreement disposes of the
vehicle to the first private purchaser, or a person claiming under him, by
transferring to him the property in the vehicle in pursuance of a provision in
the agreement in that behalf,
