Father died with car finance car in my name

Stevej0479

My father got a car for me as my credit was poor, the finance was in his name and the car registered in my name. He has recently died from a brain tumour. The finance company want the remaining balance paid in full. Do I have any rights, the loan was for £6500 I've paid £3700 back they have asked for £4220.13 to clear, I thought if a certain amount had been paid they might not take the car???

Does anyone have any advice at all for me on the best way to resolve this???

sourcrates

Hi,

Sorry for your loss.

If the debt was in your dads name, then it should be repaid from anything left from his estate.

If there is nothing left, then they get nothing.

The debt was his, not yours.

They can however repossess the car depending on the kind of finance agreement he had with them, you will need to read and check the original contract.

rtho782

Was this a personal loan? If so they have no hold over you and need to try to recover it from his estate.

Was it a PCP or Contract Hire agreement? If so they still have no hold over you but the car is not yours and you should now stop using it and wait for them to collect it.

Nasqueron

He took out the finance for you, fine, you were paying him back monthly I assume, so use that money to give to the finance company and see if they will transfer it to your name. Otherwise pay it from the estate

jonesMUFCforever

If it is HP or PCP then you have the choice of paying the loan off or getting the car repossessed.

GothicStirling

My Dad did the same for my sister a month before he died. When we knew he wouldn't be leaving to hospital she phoned the finance company, and was 100% up front with Santander, saying she was willing to maintain the payments. Probate got back in touch, and said that if she continued to make the payments she could keep the car (still has it two years later).

Of course, different companies may have different probate policies.

GothicStirling

Reading that again, did your Dad take out a loan or sign a finance agreement. My Dad had also taken a loan to help my other sister out with a car, and she had £500 left on the loan when he died. Because the car was in her name (and couldn't be included as an asset), and the estate being otherwise insolvent, the wrote off the loan.

Tiddlywinks

The following points are important to remember:

The log book only shows the registered keeper NOT the legal owner of that vehicle.

Any PCP/HP/lease agreement for the car will state that ownership remains with the finance company until the contract ends (either by handing the car back or settling the finance).

However, if a bank loan was used - where the borrower was free to spend the money as he wished - then the loan will be repaid from the estate.

If a loan financed the car then the executors will still need to establish ownership of the vehicle as the father purchased it - and so it could form part of the estate. As it appears the OP was repaying the finance (and not the deceased) then it could be seen that the OP owes the money to the estate and that the car forms part of this debt.

It's not as simple as saying 'the car's in xxxx name'.... the car is an asset of value and was purchased using funds from a person whose estate must now be valued. The executors will need to include this in their calculations and disbursement.