Looking for some sage words of advice from the SMB on a car transaction I have recently made. Three weeks ago my wife traded in her car for a newer one. We signed over the paperwork, there were no issues and all was well. Yesterday morning the owner of the dealership has phoned my wife claiming that the bloke who he has sold our old car to has come back to them kicking off as he has HPI checked it and discovered it was a Cat C write off (repairable, but not generally considered economically viable to do so). Understandably the bloke is not happy as this was not disclosed to him, and as a result wants the garage to knock £400 from what he paid for the car to sweeten the deal. The fact that is was a Cat C was news to us. The car was bought privately a year ago - the bloke who sold it said it had been in a minor bump which creased the bonet, so had had this replaced along with the windshield, which had a crack. Anyway because we, in good faith, ticked the 'not involved in major accident/write off' box when sealing the deal for the new car, the garage is trying to get the money from us to pay off the new owner. My question is, should the garage not have checked the paperwork before completing with us? Nothing was hidden in the logbook which we handed over which detailed the information that somebody in the know (i.e. with an idea about cars I don't have) could pinpoint that it was Cat C (it doesnt mention 'write off' in the book but does say it had VI check, which I now assume relatates to this) - is it not their responsibility to check before sales? Also, their website states they perform HPI checks on all vehicles before selling so how has this fella ended up with a dodgy car? Either they are lying and don't perform the check or they did, knew fine well something wasn't right and sold it on anyway hoping the new buyer wouldn't notice. The garage bartered a bit and suggested splitting the difference - the issue is they only offered £800 for the car in the first place (was bought for £1800 last year), and Cat C or not Cat C it's worth more than the £600 we would end up getting. I have no idea how much they sold it on for to this new fella. Apparently they were threatening to take it through the courts to reclaim their money if we didn't settle outside as we sold the car to them under the false pretence it was never a write off - I'm undecided whether he's trying to pull a fast one and bluffing in order to claw back money because they didn't do the proper checks before selling it on to somebody else. Any thoughts?