Paying the finance on friend's car loan

rischbrit

A good friends of ours is currently about half way through paying finance on an Audi car. However they are struggling to keep up payments and have suggested that we have their car off them ie change the V5 into our name. Also we will be paying our friends the balance each month so they in theory will continue to pay the finance company until the car is paid off then the car will become ours (if that makes sense)

Legally can our friends give us the car as technically as far as Audi are concerned it is still in our friends' possession for the duration of the contract. Or is it a case of Audi won't care as long as the payments are made each month? Thanks

barbiedoll

I have no idea about the legal implications of this but if you do go ahead, I strongly suggest that you make any payments DIRECTLY to the finance company and not to your friend!

muckybutt

I doubt very much that is above board, if your friends stop paying and do a runner then you are going to be in a whole heap of doo doo.

I would inform the finance company of your idea and see if they can change the finance arrangement over to you.

Worst case senario is that your friends dont pay - finance co registers it as stolen - you get caught and get a day in court + one helluvva fine ! .... choice is yours my friend

hartcjhart

bargepole...................

rischbrit

Thanks for the replies. I think the best thing to do would do it officially ie contact the finance company and transfer it to our name then at least the onus will be on us to pay!

hartcjhart

not knowing your financial situation,
when you contact Audi ask them for a settlement figure and if you can afford it pay the lot or try to get a bank loan(probably cheaper)to pay off the finance

harveybobbles

Technically the V5 should stay in the friends name as it is not their car to dispose of..

What happens if they do a runner.

one way around it would be to get the frind to phone the finance company and tell them that they'd like to change the bank details for the repayments and change them to yours.

Keep quiet about the car changing hands though.