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Getting a car thats still on finance?

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hey


My Uncle doesnt want it no more and wantted to sell it for 3.5 grand but i dont have 3.5 grand

I asked him if i can just take over the payments asnd he is happy for me to do that which i thought is fantastic.

But i know now that the car technically is still in his friends name, i trust my Uncle 100% and always have but im a little scared about someone else being involved as thte log book can be in my name but the ownership will still be with his friend so i dont know legally where i would stand if the friend said its his car at the end of the payments and i wouldnt be able to prove nothing?

I want to know what you think about this, has anyone known about a similair situation, is it risky?? how rislky?

What can i do to safeguard myself and at what point can i exchange ownership or can i legally take over the payments?

THanks...


:)

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    If the car is on hire purchase (HP) then the car actually belongs to the lender until the last payment is made. Most car finance is by way of HP.

    If you are not confirmed as the owner and registered keeper at the DVLA then don't do it.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    The proper way would be for you both to send the V5 to DVLA then inform the lender that you will be taking over the payments.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Thanks for your replies, the situation now is that my uncle said the log book can be put into my name but apparently his friend said the payments cannot change into my name so i will have to pay him and he pays the company, its 3.5 k left on the car.


    My concerns are:

    If i decide to pay one thousand as a bulk sum, his friend could pocket it or pay half and "borrow" half?


    If i pay the car off how do i know he wont lay claim to the vehicle at a later date (could he?)


    Is it still legal for me to get insurance on the car?

    Also if i was insured and i was involved in a write off accident (heaven forbid) or the caught caught fire and burned would i be entitle to the full payout, even if the car still owed 2 grand (for example) on finance?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I personally would steer well clear of muddled finance issues, especially where it involves family/acquaintances.

    Sounds a little too dodgy for me.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Sounds like an easy way to get caught up in any number of situations that leave you
    a) out of pocket
    b) without a car
    c) in financial / legal disputes.

    Avoid.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    True,

    I think if he could transfer the payments to my name then i would do it.

    It is a 5k car for 3.5 but its not worth the hassle, if i save for 6-8 months i can buy a nice little car for around 2 grand and its mine...

    I think the bottom line is if he cant change payments ill pull out!

    Thanks for your opinions it really helps like always
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I'd pull out even if he could "change the payments".
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