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

atrixblue.-MFR-.

ask your friend what would she do if she lent you her car and you sold it kept the money and what repercussions that follow those actions.

1. she would go nuts on you

2.she would report the car as stolen

3.you would get in trouble with law

4.you would end up paying more in the long run as youd be taken to court for criminal charges and having to pay victim charge and fine and have a conviction not only that the person you sold the car to would have you back into court for their money back, not only that the car you bought can be seized under the proceeds of crime act.

Warn your friend, if she don't want to spend a night in the cells don't sell the car under that attitude.

Carol1999

It's all a mess, I didn't think she could legally do this. I will pass on these messages to her ��

Carol1999

I think because she has made all payments on the finance and it's in her name that she sees it as hers, bit of a grey area I think.

Geodark

Carol1999 wrote: »

I think because she has made all payments on the finance and it's in her name that she sees it as hers, bit of a grey area I think.

But she hasnt made All the payments, and thats the problem - if she had and the finance was complete, and the car was hers - then it would be fine to sell.

Sooler

See here

http://www.parkers.co.uk/cars/advice/selling/archive/Buying-a-used-car-with-outstanding-finance/

here

http://www.adviceguide.org.uk/scotland/consumer_s/consumer_cars_and_other_vehicles_e/consumer_problems_with_the_car_you_bought_e/consumer_the_vehicle_you_bought_doesnt_match_its_description_e/the_vehicle_is_still_on_hire_purchase.htm

and here

http://www.parkers.co.uk/cars/advice/news/Archive/Used-car-buyers-warned-of-unpaid-debts/

JACKHANDYMAN

I'm afraid it is against the law to sell the vehicle that is actually owned by the finance company! Until all debts are paid!

FlameCloud

Its not against the law at all- its common for large dealers to have their entire stock financed in some way.

The buyer needs to be aware to settle the finance directly.

shaun_from_Africa

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.

Geodark wrote: »

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.

Provided that the purchaser of the car was unaware of the fact that there was outstanding finance on the vehicle and they were the first innocent purchaser, then they still get legal title to it and it can't be repossessed.

This is covered by S27 of schedule 4 of the consumer credit act 1974.

Where the person to whom the disposition referred
to in subsection (1) above is made (the “original purchaser ”) is a trade or
finance purchaser, then if the person who is the first private purchaser of the
motor vehicle after that disposition (the “first private purchaser ”) is a
purchaser of the vehicle in good faith without notice of the relevant
agreement, the disposition of the vehicle to the first private purchaser shall
have effect as if the title of the creditor to the vehicle had been vested in
the debtor immediately before he disposed of it to the original
purchaser.

Carol1999

I'm sure this must have an effect on a credit rating though.

albionrovers

As long as her conscience is clear, tell her that you'll visit her in prison after a long and unsuccessful life of crime.