Car Finance

Stephen_McKee

Hi All,

I don't know if this is the correct section to post this, apologies if it is not.

I've been helping my parents go through their finances and I found out that my father had taken out a car finance so that my brother-in-law could get a car, this was paid without fail but in 2007 my mother had taken out car finance so that the same brother-in-law could trade in for a new car.

Apparently when the trade in was done in 2007, the dealership in NI (SERE group) paid off the rest of the original finance and applied it to the new deal with a hefty APR.

My father who had the original finance was not contacted or asked about this and my mother was not given a full explanation, she thought she was a guarantor for the loan, not to have to pay it back herself, the time she signed took all of 10 minutes.

At the time she signed, the salesperson asked her age, occupation and health to which my mother replied honestly, she was 66, retired and had a long term illness and she still got this finance!

Neither my parents have driven or held a driving license.

I have a number of issues about this:

1. If my father had the original finance in his name, surely he should have been contacted and agreed that it could be switched to another person, after all he is paying for the car?

2. How can a loan be transferred from one person to another even if they are married?

3. How can the car be registered in another person's name if they are not the owner?

4. Surely she did not meet any criteria for the finance?

5. How can someone buy a car without a license?

I realise my parents have been very naive but any thoughts would be appreciated.

Thanks
Stephen

Tixy

Stephen_McKee wrote: »

Hi All,

I don't know if this is the correct section to post this, apologies if it is not.

I've been helping my parents go through their finances and I found out that my father had taken out a car finance so that my brother-in-law could get a car, this was paid without fail Was father making repayments on the loan or was b-i-l? but in 2007 my mother had taken out car finance so that the same brother-in-law could trade in for a new car. After that who was making payments?

Apparently when the trade in was done in 2007, the dealership in NI (SERE group) paid off the rest of the original finance and applied it to the new deal with a hefty APR.

My father who had the original finance was not contacted or asked about this and my mother was not given a full explanation, she thought she was a guarantor for the loan, not to have to pay it back herself, the time she signed took all of 10 minutes.

At the time she signed, the salesperson asked her age, occupation and health to which my mother replied honestly, she was 66, retired and had a long term illness and she still got this finance!

Neither my parents have driven or held a driving license.

I have a number of issues about this:

1. If my father had the original finance in his name, surely he should have been contacted and agreed that it could be switched to another person, after all he is paying for the car? it doesn't sound like the finance was switched, it sounds like his debt was repaid and another debt taken out in your mother's name. Anyone can pay off a debt on behalf of another person if they no the account number and person's name.

2. How can a loan be transferred from one person to another even if they are married? was it transferred? it sounds like a whole new agreement.

3. How can the car be registered in another person's name if they are not the owner? this is possible.

4. Surely she did not meet any criteria for the finance? finance was given much more freely in 2007 and a secured loan is always easier to obtain.

5. How can someone buy a car without a license? this is possible.

I realise my parents have been very naive but any thoughts would be appreciated.

Thanks
Stephen

Hi Stephen - I've put a few thoughts on the points you raised. I'm no expert but I cannot see that there is going to be much you can do about this situation. Your mother signed a new agreement with a much higher APR so she will be legally liable.

27col

What is the brother in law doing in the midst of all this. Why are other people buying his cars for him?