You
can sue the seller for your losses but this might be difficult if
you bought privately and the seller has disappeared. If you bought
the car on credit you may still have to pay off the loan. It
depends on the type of agreement you have.
It can be hard to tell whether a car is stolen. Its identity
may have been changed. For example, the identity number and number
plate of a legitimate car may be transferred to a stolen one.
Vehicle registration documents can be forged or obtained by fraud.
But there are tell-tale signs to look out for. Ask to see the
vehicle registration document (V5). If the seller can't produce
this document, be suspicious. A common excuse is that it has been
sent to the DVLA (Driver and Vehicle Licensing Agency) for
updating. This may be true, for example, the seller may have
changed address recently. But be wary. It means you cannot check
the car's ownership and identity details.
The seller should have a green slip if the car was bought very
recently and the V5 is with the DVLA for the change of ownership
to be recorded. This applies only to cars that have been issued
with new V5s, introduced in March 1997.
Are there any spelling mistakes or alterations to the V5? If
so, it may be a forgery. All legitimate V5s have watermarks.
Ask for proof of identity and address such as a driving licence,
passport, recent gas or electricity bill. Check that the same name
and address is given on the V5.