Buying a car for someone else

Foxy-Stoat_3

Make a loan agreement, stating total amount loaned to him, length of the loan and repayment amounts and state what the loan is for including the registration number of the car. Keep a set of keys and state on the agreement that you will re-possess the car if he fails to keep up the repayments.

He will be the registered keeper, his name on the V5 document and make him the legal owner on the receipt to avoid any grief when he comes to insure it.

Also make sure you can avoid and expect to lose all the money you loan to him, you will be fine.

DUTR

tiamaria wrote: »

wow that's harsh!

No more than a 3 figure sum though

£999, it's not harsh, just real.
Trust me, he needs to sort his own stuff, otherwise you will be bailing him out.
As in the Chris Rock sketch he quite rightly points out, investing in it, is always a bad investment, we have seen posts where it goes belly up when a relationship breaks down and one owes the other money.

If this guy is getting a job and intends to last the probation period, then his bank will surely loan him £1200 and he can pay back £120 a month from his salary, he won't mess them about as easy as he could mess you about. If he can't manage a grand now, how is he going to manage to save with youfor a deposit etc.

fivetide

The insurance might be a right pain. I assume you wouldn't end up fronting for him?


Even if it goes through legit, what happens if he has a crash and the insurance payout is less than he owes. Do you get further in for another car and add that finance to the debt or do you cut your losses?




If you can afford to lose the money then just lend it to him and hope he pays you back. I wouldn't do this unless you can afford to kiss the cash goodbye anyway.

maninthestreet

Never mix business with pleasure.....

tiamaria

Foxy-Stoat wrote: »

Make a loan agreement, stating total amount loaned to him, length of the loan and repayment amounts and state what the loan is for including the registration number of the car. Keep a set of keys and state on the agreement that you will re-possess the car if he fails to keep up the repayments.

He will be the registered keeper, his name on the V5 document and make him the legal owner on the receipt to avoid any grief when he comes to insure it.

Also make sure you can avoid and expect to lose all the money you loan to him, you will be fine.

If he is the registered keeper, how do i have the right to repossess the car?

Foxy-Stoat_3

tiamaria wrote: »

If he is the registered keeper, how do i have the right to repossess the car?

In your loan agreement you state that if payments are not kept then you will take back the car.

If he breaks the contract you take back the car.

Being the registered keeper doesnt make him the legal owner, but you don't want to be the legal owner as it will bring up difficulties with insurance and leave you open should the worst happen.

DUTR

tiamaria wrote: »

If he is the registered keeper, how do i have the right to repossess the car?

You don't, but as you are seeing , it is a risk that has many of the odds tilted against you and your position. It will cost you more to get the money back if he proves true to many readers fear.

tiamaria

i didn't realise that the legal owner and registered keeper were different. What's the difference and how can i ensure I'm the legal owner?

forgotmyname

You keep receipts for the car to prove you paid for it and get a solicitor to draw up a payment plan.

The issue is at the end of the say if they dont payup, You will need to take them to court for the money, Where they either dont bother turning up or say you cant have any money because they dont have any to spare.

You lose.

It happens too often on here not just friends, But family members also.

Search, You will find lots of threads where what your thinking has gone wrong.

tiamaria

If i have a receipt to say i bought the car i can legally take it back though can't i?