Car finance help - does it have to be in the registered owner's name?

blackheart_2

Morning all. I need your help!

Last year, my husband and I bought a car from a Toyota garage. We took their finance deal which basically equates to paying £250 per month for 36 months. The car finance was taken out in my husband's name.

Unfortunately my husband and I separated three months ago. He was happy to transfer ownership of the car to me as I need it for work and I was the one who had been making the payments for the past year. The car is now registered in my name with the DVLA, insured etc.

We contacted the Toyota garage a little while ago to find out whether we could transfer the finance agreement into my name. They told us that in order to do that, my husband would have to "sell" the car back to the garage, and they would then "sell" it to me again, with a minimum profit for them. When they worked out the details of selling it back to me, it would cost £250 per month for 36 months - so effectively wiping out all of the payments I've made for the past year. So, we declined that offer.

Now they've sent my husband a letter demanding that we settle the finance agreement because it is in his name, but I am the registered keeper.

So, what I need some advice on is whether they can legally demand this? I have no problem continuing to make the monthly repayments for the next 24 months, but I cannot get a lump sum together to settle the finance agreement now. I was under the impression that it makes no difference to the finance agreement who the registered keeper is, as long as the monthly repayments are made on time and in full.

Has anyone encountered this situation before? Where do I stand in terms of telling them to !!!!!! off?

Thanks for any help or advice you can give me!!

TonyMMM

Depending on the type of finance deal, I assume it is HP ? ....The point will be that the car was not his to sell (or give away), but effectively belongs to the finance company until the deal is paid off.

Have you spoken to the finance company direct .... they may be prepared to come to some way of you taking out a new finance arrangement (but be prepared for a refusal).

How about - transferring ownership back to your husband, and then he "lends" you the car ?

xyellowx

until you make your last payment the car still belongs to toyota, look at it from their point they give your ex a car on fianance over 3 years and he transfers ownership. can you not get a loan and give it your ex to pay them or can he and you continue paying him back?
other option send it back but then you have no car and a settlement fiqure to still pay off

blackheart_2

No, unfortunately I'm not in a position to get a loan to pay it off.

My ex phoned the finance company this morning and they said that they were obliged to advise us that the name and address of the registered keeper should be the same as that on the finance agreement or "it could cause problems, as per the terms and conditions". When he quizzed her further about what problems could be caused she said she didn't know. Then she said something about the insurance company might not pay up if there was an accident, but when he asked why she again couldn't say and just repeated that she was obliged to advise us of this.

Then she said that in most cases, it's actually not a problem and that she could just put a note on her system to say that the car is financed in my husband's name but that I am the registered keeper for insurance purposes, and that that would solve the problem.

So... it seems like the finance company were just trying to scare us into paying up?

xyellowx

i would think about returning it to your ex or back to toyota, if you have 24 months left a lot could happen in that time you may not be in contact or on good terms then and the car maybecome a unwanted problem

blackheart_2

It's not an option to return the car to my ex because he's already bought another car and he cannot afford the monthly repayments on the Toyota. If I return it to the Toyota garage, then I'm left without a car which I need to get to work. So neither of those options really works.

What I'm trying to understand is, why does the registered keeper have to be the same person that is named on the finance agreement? If I have an accident under the current circumstances, does that have any impact on my insurance?

I understand the point of view of Toyta trying to cover themselves so they don't lose any money, but is there any legal obligation for us to do what they've asked?

mumtomany_2

My understanding is that most finance agreements clearly state that the registered keeper has to be the person with the finance.

The reason behind this seems to be to protect the finance company. They are allowing him to use their goods providing he makes payments and so they are entrusting the car to him. They do not know you from adam and so do not want you using the car. There are normally other terms that say he is not allowed to let other use the car also.

As far as i am aware if you had a car accident you would be covered. You using the car should prevent no real problems for you but your ex could have problems in the future.

If you wrote the car off and did not hand over the insurance money to Toyota he could be charged with fraud. If you stopped paying and he was unable to return the car he could be charged with fraud. If the HP company found out he was in breach of his agreement they could repossess the car. Its probably unlikely he'd be charged with fraud (as he may need some kind of intent) but you can never be sure.

xyellowx

can you not get ex to put car back in his name, send toyota a copy of log book to prove this and get them off his back, then when sorted in a couple of months put it back in your name but this time dont tell them, as far as the insurance goes its your car and your driving it so fully covered
as said above toyota are just looking after there own interest your ex had the credit checks and credit so they want him to have the car. get him to tell them its been a mistake and hes now got the car back and its all sorted heres the new log book to prove it you then wont hear off them till payments end

blackheart_2

Thanks for the advice folks.