Car Finance Agreement

Shoegal85

Hi - hoping someone will be able to help!

I am moving away and am selling my car to my uncle, and I wanted to simply change the finance over to his name so he could pay the last 2 years of it but having just spoken to the finance company I was told this is not possible and I would have to pay a settlement fee as the finance agreement is in my name. This sounds believable enough to me. However when buying a car my mum says she was told that it was possible to change the finance over to someone else at a later date. I was wondering if anyone knows what the correct situation with this is? Do the rules just differ depending on the finance company? Any help with this would be great.

harveybobbles

Well for a start it isnt your car to sell. It belongs to the finace company.

Shoegal85

Ok, wrong terminology - i'm getting rid of my car, I'm not actually selling it. But i assume you mean that what the finance company said is valid? I just wanted to make sure as you know what it can be like with financial type organisations these days.

Gordon_Hose

Ok, so get your uncle to "buy" the car. By "buying" I mean give you the money for the remaining finance so you can pay the remaining balance, and you give him the car.

There's no other way around it unfortunately. The finance was arranged in your name, not your uncles.

Shoegal85

Thanks, I kind of thought thats what I would have to do but I just wanted to double check that there wasnt another option, as the settlement fee they have quoted is only about £200 less than what is still outstanding on the car, so its quite a lot to pay up front.
But thanks for the feedback guys, at least I know I'm not being done now.

motorguy

Shoegal85 wrote: »

Thanks, I kind of thought thats what I would have to do but I just wanted to double check that there wasnt another option, as the settlement fee they have quoted is only about £200 less than what is still outstanding on the car, so its quite a lot to pay up front.
But thanks for the feedback guys, at least I know I'm not being done now.

You uncle can settle the finance direct with the finance company, then give you a payment for the difference.

harveybobbles

Even if he gives you the money to pay it off each month - who will be insured on it and whose name will be on the V5...? Could all get messy. Seen it sooo many times before...

OP - the car belongs to the fincance company. Not you.

Only way around really would be for your uncle to get a loan, settle the finance and then the car is his.

Shoegal85

Well i was going to have the registration changed over to his name and he would arrange for the money to be transferred to my account every month so that I can just continue to pay the finance but it will be registered in his name. I realise the car still belongs to the finance company but as I will be leaving the country and not using the car, I assume they will be happy to still receive payment for the car from me, even though it is registered to someone else?

Shoegal85

pgilc1 wrote: »

You uncle can settle the finance direct with the finance company, then give you a payment for the difference.

The finance company have said that the payment has to come from me, as the agreement is under my name so he has to give me the money which I can use to pay them.

emmell

Sounds straightforward to me, your uncle gets a cash loan for the settlement figure, he gives you the cash, you pay the settlement off then change the owner on the v5. You are rid of the car and debt, your uncle gets monthly payments probably equal to the finance monthly figures. Both happy. Simples.
ML.