If you, as a private individual, buy a car on HP then the HP company have no comeback against you, the car is legally yours. It may be investigated because if they can prove that you knew about the HP then it is not legally yours and must be handed over. If you are a trader then that does not apply, the car is still the property of the HP company.

I have been on the receiving end of that a few times and have never lost the vehicle.

It would be interesting to see if this unscrupulous character has any shares or interests in the new company.