Oh poop!!! Car owned by parents but for ins purposes...

angiebhfx

Hello everyone.

BR yesterday and I am a bit worried about our car so any advice would be welcome.

My parents got a personal loan to help me get a new car ((new to me) I needed an economical car for commute to work)). The loan was over five years and I have made four payments thus far.

There is an audit trail and the loan purpose was for a car in my Dad's name. However I am the registered keeper. On my insurance I have put that I am the owner and registered keeper as the insurance fee was £200 more than if I am the Owner.Registered keeper.

Will the OR see this as being my car because of the insurance? And if so is it worth me ringing them and telling them that I am not the owner? I would rather pay the extra insurance than loose the car and still have to pay my parents back.

Thank you for your help

Angie:(

Dr.Shoe_2

I doubt whether the OR would have a problem with that but the insurers might....

dojoman

Not too sure on this one, how much is the car worth? And does your dad have a receipt to say the car is in his name? I suppose if the insurance found out that you were not the owner your insurance would be invalid, not sure whether the OR will contact your insurance or not. Hopefully someone else will be along who can shed some light on your problem, all I can say personally is that I have been 100% honest with my home and car insurances, just in case the worst did happen.

skylight

As long as your Dad has the reciept in his name to say that the car is his and he bought it, then it shouldn't be a problem.

The OR does come across this often (insurance in other names etc) so it won't be a shock to him.

angiebhfx

I felt I was being honest. If I'd have bought the car on finance, I wouldn't have put the finance company as the owner of the vehicle? Anyway my understanding is that I was paying my Mum back for the car.

The car is worth £6K. There is an audit trail i.e Parents got the loan the money was paid into their account, they transferred it to me I bought the car by debit card the following day and I have made four payments via BACS to my parents bank account since.

Hope this helps

A

angiebhfx

I did check the audit trail out on several occasions with CCCS staff who thought it would be enough, but I never mentioned that I put myself as the owner/keeper on the insurance because it didn't occur to me until I spoke to the OR office yesterday.

gizmo111

I'm not sure about this - if you are saying you owing someone £6K + then it will be included in your BR and you won't be able to make any more payments- you cant choose to one creditor and not another.
If you are saying you own a car worth £6K then the OR won't let you keep it.
Either way you have a difficult situation where your parents will most likely end up with the bill. How much are you paying them per month?

dojoman

gizmo111 wrote: »

I'm not sure about this - if you are saying you owing someone £6K + then it will be included in your BR and you won't be able to make any more payments- you cant choose to one creditor and not another.
If you are saying you own a car worth £6K then the OR won't let you keep it.
Either way you have a difficult situation where your parents will most likely end up with the bill. How much are you paying them per month?

Very good point, did not pick that up when reading the original post.

skylight

Right. So you bought the car in your name (with someone elses money makes no bones here) and you therefore own the car plus you now owe your parents nothing/still some as you paid/are paying them back for it?

Then you will lose the car and your parents will lose what you owe them as you cannot continue to pay them back. (Legally, anyway! You can pay them back what you like from your surplus income but you cannot do it "officially" and have the amount on your SOA)


And, if the car was on HP, then you would not be the legal owner but would have to still state you have the car and mention the HP company who would be the legal owners of the vehicle.

angiebhfx

My parents and I agreed verbally that they own the car if something should happen I would just give it them back for them to sell to pay the loan

gizmo111

I'm very confused as I see from your other thread you are on benefits, yet you say you recently accquired the car for an economical commute to work? Have you declared the car to the OR on your SOA?