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

arcon5

DCodd wrote: »

Would this apply in this case though as the OP's friend is just the registered keeper and not the owner? Even if the finance was paid off in full, she would not be the owner but just the registered keeper.

Well that depends on the agreement between him and her, there is probably an understanding that when the finance is paid off. The car is hers

JACKHANDYMAN

FlameCloud wrote: »

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.

In order to gain title of the vehicle! Any outstanding monies owed must be paid to the Finance company. If the car is to part exchanged at a dealers! then they will contact the Finance company for a settlement figure direct and should pay off the outstanding debt on behalf of the client. If the car is to be sold privately then the Finance company should be contacted and permission given for the car to be sold.

Joe_Horner

Carol1999 wrote: »

No she's been paying the finance on it from her bank account however the finance is in his name.shes the registered owner for the car.

That doesn't matter. The finance company have a valid financial interest in the car and, until the finance is paid off. So does the ex because he's liable to the finance company.

What she may have paid gives her, at most, an entitlement to the value of the car less the amount still outstanding on the finance and less any payment her ex may have to make as a result of her dishonesty.