Car Finance

smbnab

My brother-in-law took out a finance agreement for a car which he gifted to a friend. When he passed away the finance agreement still has a few months left outstanding. The finance agreement is in his name, he made all the payments up to his death, but I believe the registered keeper of the car is the friend. The friend says she is happy to pay off the remainder or return the car, whichever we decide. My question is, would the car then be considered as part of his estate as the finance was under his name? If we let her make the final payments will the car be considered as hers, or might my brother-in-laws creditors say, no wait a minute he has a car as part of his estate. It’s a very confusing situation.

poppasmurf_bewdley

If the car is on HP, then it belongs to the finance company until the last payment is made.

And I would think that the law would regard the car as belonging to your brother in law, or his estate. He can't, or couldn't, give away something that didn't belong to him.

smbnab

That's been my thoughts all along, while other family members/acquaintances view it differently. We're basically just guessing at this point. Trying to get hold of the Citizens Advice to have someone in the know to confirm it, but they're a nightmare to get through to.