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Car Registration Quiz...
nickhairyegg
Posts: 3 Newbie
in Motoring
Ok, looking to settle a bet on a 'hypothetical' scenario...think I've got it right but curious to see what others think...
A purchases a car on hire purchase. B contributes a car as part exchange worth about 15% of the total value but the finance is in A's name. The car is purchased solely for B to use. It is not known if it was intended as a gift. The car is registered in B's name and the log book shows this. B uses, services, insures and maintains the vehicle for around two years. The vehicle is kept and used exclusively at B's address. A continues to make the monthly HP payments.
At the two-year mark, B is informed by A that A will no longer pay the HP payments and will default if B does not take over payment. B borrows money to clear the remaining money on the car, about 20% of the total value when new. Permission is given by A through a solicitor by letter for B to contact the finance company and settle the outstanding debt. This letter stipulates verbatim that A has "no interest in the car and no interest in having it returned...provided B takes responsibility for the debt owed".
B settles the debt but then cannot afford to keep the car, so immediately sells it to a garage that pay cash for the vehicle and take possession of the V5 which is countersigned by B, already being in their name. HPI checks out and confirms the above details.
Three weeks later, A learns that B has sold the car and raises the issue that B had no right to do so.
Was the sale legal and above board??
I promise the above isn't me trying to outsource an answer to my legal exams!!! Just not wanting to get stung on a slightly complicated situation!
Go!!
A purchases a car on hire purchase. B contributes a car as part exchange worth about 15% of the total value but the finance is in A's name. The car is purchased solely for B to use. It is not known if it was intended as a gift. The car is registered in B's name and the log book shows this. B uses, services, insures and maintains the vehicle for around two years. The vehicle is kept and used exclusively at B's address. A continues to make the monthly HP payments.
At the two-year mark, B is informed by A that A will no longer pay the HP payments and will default if B does not take over payment. B borrows money to clear the remaining money on the car, about 20% of the total value when new. Permission is given by A through a solicitor by letter for B to contact the finance company and settle the outstanding debt. This letter stipulates verbatim that A has "no interest in the car and no interest in having it returned...provided B takes responsibility for the debt owed".
B settles the debt but then cannot afford to keep the car, so immediately sells it to a garage that pay cash for the vehicle and take possession of the V5 which is countersigned by B, already being in their name. HPI checks out and confirms the above details.
Three weeks later, A learns that B has sold the car and raises the issue that B had no right to do so.
Was the sale legal and above board??
I promise the above isn't me trying to outsource an answer to my legal exams!!! Just not wanting to get stung on a slightly complicated situation!
Go!!
0
Comments
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I would say that the sale was legal because of
as B took responsibility for and paid off the loan then the condition has been met and A had no further interest in the vehicle from that pointThis letter stipulates verbatim that A has "no interest in the car and no interest in having it returned...provided B takes responsibility for the debt owed".This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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