Car Finance complications

lisajordan73

Hi, don't know if anyone can help but I have a friend who has recently split up with her boyfriend. They got a car to support his job as a taxi driver which was registered in his name. My friend is paying for the finance which is all in her name,so basically she is wondering where she stands? He is saying that she should send the car back to the finance company but will that leave her with bad credit? she has the keys and still owes about £3000 on the loan, so if she does send the car back, what will happen, as she does not know whether he will be difficult about it and refuse to sign any paperwork etc? Who legally owns the car? Thanks

MrsTinks

Legally... HE owns the car and SHE owes the money - this is yeat another reason for why you should never take finance out for someone else and then have the car registered in their name...
What she needs to do is ASAP get him to sign the registration document over to her before things go from bad to worse...
As for handing the car back... she needs to speak to the finance company about this... it would partially depend on her agreement with them and the residual value of the car. If the value of the car is less than what is owed then she'll end up having to pay the difference - otherwise she might be better off selling it privately and then paying off the finance.

lisajordan73

Thanks for the advice, I will pass the info on!

vaio

Registered keeper and owner can be different so it could be that she owns it already if the original receipt is in her name. If not then the suggestion to get it signed over to her asap is a good one.

I think with some car finance that once you have paid half the instalments you can hand the car back and walk away but the OP is a bit short on detail

Savvy_Sue

MOVING THREADS FOR BETTER RESPONSES

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Loans board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].