What happens if she does not pay off this car loan and sells the car??

Carol1999

Hi, I'm looking for some information on car loans as I don't know how they work. My friend has split up with her partner, she has a loan for a car. The car deeds are in her name but the finance for it is in her ex partners name, they own a house together, the payments come out of her bank account.
So she plans to sell the car but instead of paying the loan off she's going to put it towards buying a new car and basically not pay off the rest of the loan! She's under the impression that the loan company won't bother about their money! As the finance isn't in her name she doesn't care, but surely there is consequences to this?
Surely who ever buys the car runs the risk of getting it repossessed from the finance company?? I think she's mad and I'm very worried, does anyone know what could happen here? Thanks for your responses in advance!

Geodark

Carol1999 wrote: »

Hi, I'm looking for some information on car loans as I don't know how they work. My friend has split up with her partner, she has a loan for a car. The car deeds are in her name but the finance for it is in her ex partners name, they own a house together, the payments come out of her bank account.
So she plans to sell the car but instead of paying the loan off she's going to put it towards buying a new car and basically not pay off the rest of the loan! She's under the impression that the loan company won't bother about their money! As the finance isn't in her name she doesn't care, but surely there is consequences to this?
Surely who ever buys the car runs the risk of getting it repossessed from the finance company?? I think she's mad and I'm very worried, does anyone know what could happen here? Thanks for your responses in advance!

is it finance or a loan? if it was bought with an unsecured personal loan then yes she can sell the car as she owns the car from the start, but with finance she doesnt own the car until it is paid up

Carol1999

I'm sure it is finance.

Geodark

Carol1999 wrote: »

I'm sure it is finance.

Then it would be a bad move to sell the car as officially it isnt hers!

Carol1999

I've tried to tell her how it's a bad idea but she doesn't seemed worried in the slightest, I think she thinks nothing will happen! Thanks for replying ��

gilbert_and_sullivan

''As the finance isn't in her name she doesn't care''

She should come with a government health warning.

Get a big bag of popcorn and watch this sorry tale of your friends revenge/payback/hate, which will only end in further antagonism and self destruction, unfold.

Geodark

gilbert_and_sullivan wrote: »

''As the finance isn't in her name she doesn't care''

She should come with a government health warning.

Get a big bag of popcorn and watch this sorry tale of your friends revenge/payback/hate, which will only end in further antagonism and self destruction, unfold.

but chances are this isnt going to bite the ex, but the poor sod who buys the car - but then again if they do an HPI then they would know the state of the car finance before they bought it.

Carol1999

I know! Quite sad it's came to this really

Carol1999

Yes but that's only if they check it, what a shame on the person that buy it if they didn't do this! I'm sure the car can be repossessed? I'm sure i watched something like this on watchdog not that long ago.

Joe_Horner

Bear in mind that the registration document does NOT prove ownership. It's very clear indeed on that point.

Normally it's the only document available, but f there's a finance agreement, or even a personal loan, that her ex can show was taken out to buy the car then he'd have good grounds for claiming that the car belonged to him, which could land her in the middle of a theft complaint.

May not actually go anywhere, but could get messy and would quite likely end up with her handing half the sales value to him - leaving her with a lot of strees and not enough to replace it with.

If someone tried that on me that's certainly the line I'd push (hard) with the police as soon as I realised it had gone, and it's the line I'd advise any of my friends to take in the same circumstances

Geodark

Carol1999 wrote: »

Yes but that's only if they check it, what a shame on the person that buy it if they didn't do this! I'm sure the car can be repossessed? I'm sure i watched something like this on watchdog not that long ago.

yup, the new buyer runs the risk of getting the car repossessed and then would have to try and get the money back from your friend.