Huge Mess - Finace and car insurance

simple_ways

BeenThroughItAll wrote: »

You've made a lot of assumptions along the way without reading any of the terms and conditions. Those assumptions could end up costing you a lot of money.

I very much doubt the finance agreement allows your friend to rent out the finance house's asset to some random mate of his to pretend is his car.

im pretty sure he is allowed to give full use of vehicle, and Not hired out as such but i do understand your point.

simple_ways

Herzlos wrote: »

What kind of finance agreement is it? A loan? HP? PCP?

Its PCP form what i understand.

BeenThroughItAll

simple_ways wrote: »

im pretty sure he is allowed to give full use of vehicle, and Not hired out as such but i do understand your point.

'Pretty sure' won't cut it with the finance house.

Your paying him monthly for use of the vehicle is hired; exactly as such. It's the same arrangement you'd have if you borrowed a car off Enterprise, or Hertz - you pay them to use the car but you don't own it.

You've got yourself a whole heap of things to worry about beyond whether the insurance pay out.

Warwick_Hunt

simple_ways wrote: »

warwick...

they have deemd the vehicle a write off.

and they are aware my friend is the registered keeper.

they are not however aware of our arrangement, which is i will be the owner once the finance is paid off. So i have full us of vehicle until finance is paid off and then i become owner, as i will be paying installments and lump sum at the end of agreement.

But as it stands you've been using it without the knowledge of the owner.

You best hope they don't void the policy.

Have you seen the V5 and is your friend the RK?

BeenThroughItAll

simple_ways wrote: »

Its PCP form what i understand.

What do you actually KNOW about this deal?

So far you've assumed, been pretty sure, and now this.

You got sucked in to the idea of being able to drive a nice shiny new car without having to get the finance yourself, and now your finance house/insurance fraud scheme is starting to unravel around you.

No sympathy from me I'm afraid.

simple_ways

Warwick_Hunt wrote: »

But as it stands you've been using it without the knowledge of the owner.

You best hope they don't void the policy.

Have you seen the V5 and is your friend the RK?

Yes my friend is the reguistered keeper.

simple_ways

BeenThroughItAll wrote: »

What do you actually KNOW about this deal?

So far you've assumed, been pretty sure, and now this.

You got sucked in to the idea of being able to drive a nice shiny new car without having to get the finance yourself, and now your finance house/insurance fraud scheme is starting to unravel around you.

No sympathy from me I'm afraid.

Fair assessment i guess. . . . .

IamNotAllowedToUseMyName

I shouldn't worry too much, I don't think you've done anything that intentionally deceives the insurance company - you've insured a car that you are driving, and you are paying for it. You are to all intents and purposes the keeper, though you haven't done the paper work with DVLA. Depending on the finance agreement, the owner may well not have been your mate anyway. It is common practice to insure cars that do not belong to you so there is no issue for the insurers there.

The people who could be miffed are the finance company. Essentially, to avoid the early termination payments, your friend has sub-leased the car to you with a verbal contract. However, as long as they get their money, they are not going to investigate too much.

My take is, just go through the proper process with the insurance claim and once that is settled, you've got to sort out the finance with your mate. You can either let that run its course, given where you are, or you can get your mate to settle the finance. It would need a quote to settle the finance. In reality, what's done is done and as long as the finance people get their money, they're not going to be too worried.

Your only issue might be that there might be a shortfall between finance and the insurance payout, depending on the age of the car.

I think if it came to the crunch, the verbal contract is that you have taken ownership of the car, with your mate retaining the documents as surety in case you breach your contract with him. In law, I suspect the fact you made payments and had a verbal agreement would trump a V5 and I doubt that the insurers would be interested in pursuing an arrangement made in good faith.

simple_ways

re: shortfall. My friend has his own GAP insurance which he took out at time of the finance.

IanMSpencer wrote: »

I shouldn't worry too much, I don't think you've done anything that intentionally deceives the insurance company - you've insured a car that you are driving, and you are paying for it. You are to all intents and purposes the keeper, though you haven't done the paper work with DVLA. Depending on the finance agreement, the owner may well not have been your mate anyway. It is common practice to insure cars that do not belong to you so there is no issue for the insurers there.

The people who could be miffed are the finance company. Essentially, to avoid the early termination payments, your friend has sub-leased the car to you with a verbal contract. However, as long as they get their money, they are not going to investigate too much.

My take is, just go through the proper process with the insurance claim and once that is settled, you've got to sort out the finance with your mate. You can either let that run its course, given where you are, or you can get your mate to settle the finance. It would need a quote to settle the finance. In reality, what's done is done and as long as the finance people get their money, they're not going to be too worried.

Your only issue might be that there might be a shortfall between finance and the insurance payout, depending on the age of the car.

I think if it came to the crunch, the verbal contract is that you have taken ownership of the car, with your mate retaining the documents as surety in case you breach your contract with him. In law, I suspect the fact you made payments and had a verbal agreement would trump a V5 and I doubt that the insurers would be interested in pursuing an arrangement made in good faith.

AdrianC

simple_ways wrote: »

Fair assessment i guess. . . . .

You really need to get hold of the paperwork, and go through it. If you're not sure of anything, re-post here.

This has the makings of a right ol' mess - but it MIGHT not be an issue. The devil is in the detail.