Car finance/ownership issue

jm76jm

Hi,

Wondering if anyone has advice for my son. His girlfriend is buying a car on finance in his name (so the car is registered to him) The monthly payment goes out of his bank and she puts the money in every month. She couldn’t get finance when she applied.

They recently split up and already she hasn’t paid this months payment. She has the key but he has the car. She has paid just under half of the finance so far.

She seems to be messing him about and it honestly doesn’t look like she’ll pay up. The finance company have told him there is £1500 to pay the finance off.

He wants to sell the car for £1500 to clear the finance and get rid of the car. Can he do this? I’m sure she’ll want her money back that she’s paid so far so I’ve told him to wait a little longer for her to pay the £1500.

Any advice would be great, thanks

AdrianC

The V5C is in his name.
The finance is in his name.

His car.

DrEskimo

jm76jm said:

Hi,

Wondering if anyone has advice for my son. His girlfriend is buying a car on finance in his name (so the car is registered to him) The monthly payment goes out of his bank and she puts the money in every month. She couldn’t get finance when she applied.

They recently split up and already she hasn’t paid this months payment. She has the key but he has the car. She has paid just under half of the finance so far.

She seems to be messing him about and it honestly doesn’t look like she’ll pay up. The finance company have told him there is £1500 to pay the finance off.

He wants to sell the car for £1500 to clear the finance and get rid of the car. Can he do this? I’m sure she’ll want her money back that she’s paid so far so I’ve told him to wait a little longer for her to pay the £1500.

Any advice would be great, thanks

What money back?

If the car is only worth £1,500 and the remaining finance is £1,500, then all of her payments have gone towards deprecation and interest. She surely can't be expecting to run a car on finance for free?

jm76jm

DrEskimo said:

jm76jm said:

Hi,

Wondering if anyone has advice for my son. His girlfriend is buying a car on finance in his name (so the car is registered to him) The monthly payment goes out of his bank and she puts the money in every month. She couldn’t get finance when she applied.

They recently split up and already she hasn’t paid this months payment. She has the key but he has the car. She has paid just under half of the finance so far.

She seems to be messing him about and it honestly doesn’t look like she’ll pay up. The finance company have told him there is £1500 to pay the finance off.

He wants to sell the car for £1500 to clear the finance and get rid of the car. Can he do this? I’m sure she’ll want her money back that she’s paid so far so I’ve told him to wait a little longer for her to pay the £1500.

Any advice would be great, thanks

What money back?

If the car is only worth £1,500 and the remaining finance is £1,500, then all of her payments have gone towards deprecation and interest. She surely can't be expecting to run a car on finance for free?

The car is probably worth around £2600. My son just wants to get £1500 so he can clear the finance. He’s not interested in making a profit, just clearing the debt and walking away. The finance company said the offer of £1500 to clear the finance is open for 1 month.

Since I posted this his ex has said she’ll pay the outstanding finance by the end of today. Not holding my breath because we seem to be hearing this same thing over and over for the past week.

neilmcl

AdrianC said:

The V5C is in his name.
The finance is in his name.

His car.

Well, it isn't until the finance is fully paid off.

Goudy

I think if you take any animosity out of it, the sensible thing to do would sell the car on and anything over what's owed to the finance company is paid back to his girlfriend after taking out any payments and reasonable costs your son suffered.

The quote from the finance company is only valid for a month because they expect another payment next month which will alter the settlement figure, so there's time.

Selling a car on with outstanding finance is a bit difficult, so I would suggest a car buying service like We Buy Any Car or Motorway. They will get an up to date settlement figure and settle the finance before paying on the difference to your son.

Your son doesn't want or need a negative credit event on the financial history and if he can get hold of the key, this could be sorted out in a matter of a few hours.

jm76jm

Goudy said:

I think if you take any animosity out of it, the sensible thing to do would sell the car on and anything over what's owed to the finance company is paid back to his girlfriend after taking out any payments and reasonable costs your son suffered.

The quote from the finance company is only valid for a month because they expect another payment next month which will alter the settlement figure, so there's time.

Selling a car on with outstanding finance is a bit difficult, so I would suggest a car buying service like We Buy Any Car or Motorway. They will get an up to date settlement figure and settle the finance before paying on the difference to your son.

Your son doesn't want or need a negative credit event on the financial history and if he can get hold of the key, this could be sorted out in a matter of a few hours.

Thanks for the reply. I agree with what you’ve said. Unfortunately getting her to hand over the key is another problem he’s having. 

I haven’t spoken to his since last night so I’m hoping she’s paid him what owing last night and she can take the car and he can finish the debt... fingers crossed

Ectophile

Only one key?  Your son han't got the spare one by any chance?  It is possible, but expensive, to get replacement keys made up to fit the car.

jm76jm

Ectophile said:

Only one key?  Your son han't got the spare one by any chance?  It is possible, but expensive, to get replacement keys made up to fit the car.

The car only had one key. He can get a key made for it but i think he’d rather her just pay it off. She has now paid this months finance payment into his account. Think he’s going to try for 30 minutes free legal advice to see what he can do now

ontheroad1970

jm76jm said:

DrEskimo said:

jm76jm said:

Hi,

Wondering if anyone has advice for my son. His girlfriend is buying a car on finance in his name (so the car is registered to him) The monthly payment goes out of his bank and she puts the money in every month. She couldn’t get finance when she applied.

They recently split up and already she hasn’t paid this months payment. She has the key but he has the car. She has paid just under half of the finance so far.

She seems to be messing him about and it honestly doesn’t look like she’ll pay up. The finance company have told him there is £1500 to pay the finance off.

He wants to sell the car for £1500 to clear the finance and get rid of the car. Can he do this? I’m sure she’ll want her money back that she’s paid so far so I’ve told him to wait a little longer for her to pay the £1500.

Any advice would be great, thanks

What money back?

If the car is only worth £1,500 and the remaining finance is £1,500, then all of her payments have gone towards deprecation and interest. She surely can't be expecting to run a car on finance for free?

The car is probably worth around £2600. My son just wants to get £1500 so he can clear the finance. He’s not interested in making a profit, just clearing the debt and walking away. The finance company said the offer of £1500 to clear the finance is open for 1 month.

Since I posted this his ex has said she’ll pay the outstanding finance by the end of today. Not holding my breath because we seem to be hearing this same thing over and over for the past week.

If he sells it for £2600 he won't have made any profit unless the cost including interest is less than this.  What he does with the residual money is up to him.  If he felt charitable he could send this to her.