Logbook loan / Bill of sale

antoquintos

Hi all,


Apologies if this is a stupid question but I have been wracking my brains a bit on this one.


To cut a long story short, I took out a Logbook Loan against my vehicle a while ago. I am well ahead with payments on this. Anyway, a close acquaintance has just upgraded their car, and has offered me their current car as it is a significant upgrade on mine.


I have spoken to the Loan company, and they will not release the V5 to me unless I fully clear the debt first. The 'best' they can do for me, is to wait for the V5 for my new car to arrive first, and then effectively transfer the debt across. The problem is, of course, I do not want to be paying for 2 sets of insurance, 2 sets of tax, and 2 sets of parking permits for the interim period between my new vehicle arriving and the new logbook coming etc.


Somebody suggested to me that I should purchase a new V5 from the DVLA for my existing vehicle, and sell my existing car that way. Then, of course, I could use the funds to clear the Logbook Loan. This would then, of course, avoid the situation of paying 2 lots of insurance, tax etc. Would this be legal though? I am conscious of that fact that due to the bill of sale, I might be breaking the law if I did this. Similarly, if I went to sell the car in this way, would the 'Bill of Sale' appear when the new buyer did a finance history check on the vehicle?


Thanks in advance for your help

tidds

Getting a new V5 whilst the old V5 is being held would be fraud? Don't do that.

antoquintos

Thank you - that's what I suspected.


Back to the drawing board it is when


Many thanks

Vikipollard

Why not take your existing vehicle off the road and declare it SORN? How much/how long will it be before you clear off the loan on it?

Whistler23

The new log book won't take more than a couple of weeks to arrive usually.

AnotherJoe

"2 sets of tax 2 sets of insurance 2 sets of parking permits. "

The tax is 1/25th of a full year, unlikely to be much ?
Will your insurer give you a deal whereby you have the two cars for two weeks and they give you a reduced rate?
Can you not park it somewhere it doesn't need a permit for two weeks ?

antoquintos

Thank you all for your replies.


Unfortunately, I cannot declare the car as SORN because I have nowhere to take it off road. I therefore enquired about storing the vehicle for 2 weeks (by which time hopefully the new V5 would arrive) but the cheapest storage in my area would be over £120.00 for the fortnight.


Similarly, regarding my insurance, I asked them about insuring both vehicles for the fortnight, and the 'best' they could do was for me to effectively take out a brand new policy (£70.00 per month) and then cancel it after 1 month (by paying a £50.00 admin fee on top). I therefore enquired about 'temporary' insurance and they wanted £150.00 for 2 weeks!


Not to worry though - just one of those things. I have got a couple of other enquiries to make so hopefully one of those will lead to a solution


Many thanks