Car Loan \ Credit Card \ HP?

Sinhanada

Hi All

Well I've finally come through the other side of being on a DMP and am now fully paid off.

Unfortunately after this I have split from the wife and moved into a new house (I had to take a small £3k loan to afford furniture and deposits etc) with my daughter. As part of the split it was agreed that I would take the car and continue to pay off the loan which was in my wife's name. Unfortunately I do not trust her to not report this as stolen and try to have me arrested (There is a reason for the distinct lack of trust!).

Would I have any legal standing if stopped by the police as I am not named on the V5 document? Or would be it better to look at purchasing a new car? I wouldn't be able to afford even a £1k car on cash and would need some sort of finance for this - what would be the best method? I don't have very much debt (2 credit cards - both under £1k and with £1.5 limits) and a £100 overdraft

Any advice gratefully received

Nasqueron

Ensure the DVLA have you as the RK and on the V5 (assuming it's not the dealer on there) - make sure dealer/finance company know what has happened. If you sold the car you would have to clear the finance which might be more than the car is worth

Sinhanada

That's what I'm trying to do, but she won't transfer the V5 to me unfortunately. The loan was a personal loan which she took so it looks like I'm looking at a new (or second hand!) car if I want peace of mind

Nasqueron

Sinhanada wrote: »

That's what I'm trying to do, but she won't transfer the V5 to me unfortunately. The loan was a personal loan which she took so it looks like I'm looking at a new (or second hand!) car if I want peace of mind

Problem then will be selling the car (which will be complicated without you being on the V5) long before you have to worry about any shortfall (depreciation means you will probably get less for the car than is outstanding on the finance) and then on top of that paying for the new car.

You should post this on the Motoring section of this forum to explain what is going on with it and get advice

audigex

So the car and loan are in her name? Great, hand her the keys: it's her problem.

Buy a £500 runabout and put whatever you would have paid on the loan into a savings account. When the £500 banger goes kaput, use whatever is in that savings account to buy a new car, or as a deposit towards one, depending on how long the banger lasts.

You don't trust her: taking on her loan with no guarantee that she won't just ask for the car back after you've paid it off for her or try to get you arrested first etc, is madness.

£70 up front and £70 a month over 4 years will get you a perfectly serviceable used car for a reasonable monthly amount. Or if you save £1000 and pay over 3 years, even better.

Taking on a loan for someone you trust is risky, taking on a loan for someone you don't trust without even securing the asset for yourself at the end, is crazy.

macman

The V5C has nothing to do with legal ownership, it merely defines who is the registered keeper. Transferring the V5C into your name would not make you the legal owner.
As above, if her name is on the loan, then paying it is her problem, not yours.