car finance when someone dies

scottmcintyre318

My Mum had recently taken out car finance in her name for me from Arnold Clark back in may but suddenly passed away. I paid 1500 towards the car and had 2559 financed. There is now 2000 outstanding as I continued to pay it since they had my bank details. I am now worried as I feel I should have told them that she had died as it was in her name but was worried incase they wanted the car back and I can't loose it. So what do I do? Do I continue paying it and do nothing or do I tell the finance company? There was a substantial amount of money left as part of the estate so it is easily cleared. Would they want the car back or the money?

Help much appreciated, thanks!!

forgotmyname

Pay the balance and your all clear.

scottmcintyre318

forgotmyname wrote: »

Pay the balance and your all clear.

Sounds alright. So would the lawyer who is dealing with the estate be happy for me to then take the car? I pay for it all etc it's just because the finance wasn't in my name!

Tiddlywinks

I'm sorry to hear about your mum.

The problem will be that all finance documents are in your mum's name so you will have trouble with getting them to speak to you for a settlement figure or whatever unless you tell them the truth.

Also, this has the potential to be very complicated as if records show that the car was owned by your mum then it forms part of her estate.

On the other hand, if it is a PCP type contract then the car ownership doesn't transfer until the last payment so your mum was not the owner when she died.

bigjl

There might have been some form of insurance that will settle the balance of the finance perhaps.

LandyAndy

scottmcintyre318 wrote: »

Sounds alright. So would the lawyer who is dealing with the estate be happy for me to then take the car? I pay for it all etc it's just because the finance wasn't in my name!

I presume the solicitor is acting as executor. Explain it to them and see what they say would seem to be the best way to get the correct answer.

atrixblue.-MFR-.

I would ask your mum solicitor how to proceed with this.

a question better asked on this board.
http://forums.moneysavingexpert.com/forumdisplay.php?f=217

my only experience with this is that the finance gets tied up in the estate so hence the car does.

im sure if someone who wants to purchase the car from the finance company they have to supply death cert and cover letter asking for their full and final price to settle the finance as they wish to keep the car, they have no obligation to accept the offer to purchase and can take the car back.

arcon5

If the estate leaves substantial sums then can't the lawyer pay the balance and deduct it from any amounts distributed to you? I doubt they would want the car back if financial settlement is being offered.

DUTR

scottmcintyre318 wrote: »

My Mum had recently taken out car finance in her name for me from Arnold Clark back in may but suddenly passed away. I paid 1500 towards the car and had 2559 financed. There is now 2000 outstanding as I continued to pay it since they had my bank details. I am now worried as I feel I should have told them that she had died as it was in her name but was worried incase they wanted the car back and I can't loose it. So what do I do? Do I continue paying it and do nothing or do I tell the finance company? There was a substantial amount of money left as part of the estate so it is easily cleared. Would they want the car back or the money?

Help much appreciated, thanks!!

Sorry to learn of the loss of your Mum.

Was your Mum a guarantor for the finance?
Inform the finance company, they may agree to transfer the balance to you as long as the repayments are up to date.

nobbysn*ts

So sorry to hear of your loss. If the car was owned by your mum, with her name on the v5, ownership will pass to the executor. He can choose to pay of the finance, then pass the car to yourself, according to the will.The insurance will need notifying asap, if the insurance was in your mum's name, it will have become invalid, apart from normally allowing the executor (or his nominee) to place the car in storage pending. If the insurance is in your name, again they need to be informed, as the registered keeper and owner will change, nominally to the executor pending execution of the will. If the car is willed to your yourself, this can be done almost immediately, but inform the solicitor what you're doing.

googler

Assuming your mum to have been domiciled (resident) in Scotland, it would help to know if she left a will, whether you were left anything in the will, or whether she died intestate .... And who her executor is/was.