buying car for BIL any safeguards?

Sea_Shell

If he doesn't pay you back, are you genuinely going to "repossess" the car from him...maybe leaving him unable to get to work, or take the kids to school etc??

If not, then what's the point of complicating matters with log books and ownership?

loskie

you will get all the fines if your name is on the V5.
Draw up a written agreement re the "loan" and ownership of the car. I'm sure you will find a template somewhere if you look.
He should be the regd keeper.
You keep the spare key.

Loans like these often lead to all sorts of problems but I'm sure you will have considered this.

foxy-stoat

I would buy him the car and hope he pays you back, draw something up, loan amount, monthly payments etc etc. Keep the receipt of the car from the dealer, in your name, and a spare key and hope you dont need them.

See you again in a few months time on how to chase him for the money or get the car back.

wrightk

Arklight wrote: »

What actually is this car? If he's that well paid cant he just buy £500 run around until he's saved up?

You don't sound like you trust that you'll get this vehicle or the money back from him or you wouldn't be worrying about all this..

My advice when it comes to lending family money is don't, but if you do, accept you may never see it again, irrespective of what the V5C and receipts say.

I think you're probably being a bit dramatic here. I didn't say i didn't trust him at all. It was his idea to prove his trustworthyness that i put some kind of safeguard in place and that says to me he is committed to repaying the loan and any consequences if he, for some reason didn't.

My question was around the best way of doing it

foxy-stoat

Tell him he can prove he is untrustworthy by making the payments each month on time with no excuses.

Anything in writing will only serve a purpose if you ever need to go down the small claims track or try and get a CCJ against him.

Takmon

wrightk wrote: »

I think you're probably being a bit dramatic here. I didn't say i didn't trust him at all. It was his idea to prove his trustworthyness that i put some kind of safeguard in place and that says to me he is committed to repaying the loan and any consequences if he, for some reason didn't.

My question was around the best way of doing it

You just need some kind of documentation showing be owes you the money but if he did stop paying you would have to take him through small claims courts. Is this something you are prepared to do?

You say he is well paid but he obviously isn't well paid enough to save up money to buy his own car. If he doesn't have the money saved up that suggests he spends all the money he earns and has none spare to pay off a car loan to you. So if you do go ahead just be prepared to lose the money and then you won't be disappointed.

mcpitman

wrightk wrote: »

My question was around the best way of doing it

This may not be what you want to hear......... the best way of doing this is not to do it.

Honestly, if banks won't lend him the money, and banks could afford to lose £k's, why should you front the risk.

Mercdriver

This would be against the rules of the finance house. There was a case some time ago where someone lost the car because the person driving and keeping the car wasn't the person named on the loan and the lender foreclosed due to breaching the agreement. It's against the rules and could be considered fraudulent.

You could go down the route of being guarantor for him instead, and if he keeps up payments, he would have an improved credit rating as a result. Or if you really trust him you get a personal loan from a bank and get him to set up a direct debit from his bank account and set up a legal agreement and get it witnessed. You could put in a clause that you can take the car if he doesn't keep the payments and hold on to one key.

Ergates

Takmon wrote: »

You say he is well paid but he obviously isn't well paid enough to save up money to buy his own car. If he doesn't have the money saved up that suggests he spends all the money he earns and has none spare to pay off a car loan to you. So if you do go ahead just be prepared to lose the money and then you won't be disappointed.

From the OP:

"He's in permanant well paid work (bricky) but has had financial probs several years ago. "

BIL has debts from previous financial problems which is, more than likely, where all his spare money is going.

Ergates

Mercdriver wrote: »

This would be against the rules of the finance house. There was a case some time ago where someone lost the car because the person driving and keeping the car wasn't the person named on the loan and the lender foreclosed due to breaching the agreement. It's against the rules and could be considered fraudulent.

What finance house? The OP will be the lender in this case - the're buying the car for the BIL, not taking out a loan for the BIL.