Right I bought a car in january from a person up country now as always i rac data check anything i buy and it came back clear
Now I sold the car a couple of weeks later as i didnt like it that much and that was that
I have have just had a phone call from the person who i sold it to saying that he also has sold the car on to a dealer and the garage hpi checked the car before doing a deal and it came back clear again.

Now heres the interesting bit he has just had a call from the dealer to say the car has got outstanding finance on it from 2007 as someone from the finance company has come round asking about it. Consequently the dealer has told him that he must return his new car back (they did a straight swap ) and then sue me and then i sue the person who i bought it from who then has to sue the person who took the finance agreement out on it????????????

Now I am right in thinking that the liability lies with the new owner which is the trader??
as both myself and the person i sold it to bought the car in good faith and did the necessary rac data checks which as i said came back clear

So where do we stand I have told the person who I sold it to not to give his car back to the dealer as i reckon he is trying to pull a fast one and that he will be stuck with the said car (or not if the finance people get hold of it) and then be seriusly out of pocket!!!!

Any help would be appreciated