Friends car finance problems.

steven_garner

Hi All,

Hope im posting in the correct area.

A friend I work with is in a pickle with his car, he had asked my advice but im not sure about it.
The story is –

About a year ago he was in need of a new car, he has poor credit but wanted a newish car as he drives a lot of miles for work
He was declined finance from a large car sales company but a “Friend” that he recently met and works with took the finance in her name but the car is registered in his name.
Since then he has been paying for the car with no difficulties but wants to move to Devon with his new girlfriend who is a few weeks pregnant.
The “friend” we work with who has the finance in her name is getting funny about him moving away and wants him to pay the car finance in full before he goes – this is something he can afford to do (still about 8K on the loan)
Shes not happy to sing the finance over because she is getting advice from a friend who says its not legal, she is very unwilling to do it any other way then her way.

Does anyone see a way around this? How can all parties be happy? He doesn’t mind loosing the car as partner has one in Devon.

Any help appreciated.

ILW

She needs to get a settlement figure.
He gives her the cash and she pays off the loan.
Seems fairly straightforward unless I am missing something.

BenL

Maybe a typo in here

"– this is something he can afford to do (still about 8K on the loan)"

Should this be "cannot afford to do"?

Has your friends finances improved so they can get a loan?

Is the car worth more than the estimated outstanding?

steven_garner

BenL wrote: »

Maybe a typo in here

"– this is something he can afford to do (still about 8K on the loan)"

Should this be "cannot afford to do"?

Has your friends finances improved so they can get a loan?

Is the car worth more than the estimated outstanding?

sorry - typo :mad: he cant afford

You wouldnt believe how much bother i have had with that same typo at work

ILW

steven_garner wrote: »

sorry - typo :mad: he cant afford

You wouldnt believe how much bother i have had with that same typo at work

In that case my previous post is probably not much help.

dougyd

If he can live without the car, wouldn't it be better to sell it (private = more profit) to go towards the loan and then pay the rest of it.

steven_garner

dougyd wrote: »

If he can live without the car, wouldn't it be better to sell it (private = more profit) to go towards the loan and then pay the rest of it.

Yes but he wont be able to sell the car because the HPI will show outstanding finance.
ITs a nice car 06 vectra SXI so anyone who would have the cash to buy it would deffinatly want a HPI check.

Does anyone know who the owner of the car would be?

She holds the finance
He is the registered keeper

Thanks

CHR15

That post sounds like he is considering doing a runner with the car and stopping payments altogether...... your "friend" I mean.


I find it unlikely a simple work colleague would take on someone else finance agreement for well in excess of £8k.

Was there something between the two of[STRIKE] you,[/STRIKE] them, but now[STRIKE] you have[/STRIKE], he has gone and got someone else up the stick so is trying to do a runner keeping the car??



.

marmitedog

I'd agree with the last post. Sounds like your "friend" realises he's been stiffed on the deal and wants out.

£8k owing on a boggo Vectra thats worth £7k tops to the trade? How much did he pay in the first place?

steven_garner

I see what you’re all doing....

No its not me :exclamati

1, im not daft enough to get car finance for 8+ k
2, i would never get someone i hardly know to sign an agreement
3, i have good credit and happily married.

I am just asking for a friend who doesn’t have access to the internet during the day.

Any way.

They met a few weeks before the car was purchased I believe they had a casual relationship and then they just became friends, both are young (18-19) so i would they the just rushed in to something that benefited them both at the time (he was taking her to work)

The advice he as been given by CAB is to get her to contact the finance company but she is refusing.

He is moving in about 4 months, i would think if she was unwilling to contact the finance company he should sign the log book over to her and give her the car?

standupguy

What type of finance agreement?

If it is hp then your friend needs to find out how much has been paid back in monthly payments added together with the original deposit shown on the finance agreement.

Then compare that figure to the half hp price figure shown on the document - if the payments made are greater than the half hp figure then the car can be returned under a voluntary termination. If there is a shortfall then he (she) can still vt but will have to find the shortfall amount at time of vt.

The agreement cannot be re-assigned to your friends name.