Taking over Finance and Legality.

ca9phoenix · 2 Aug 2012 at 17:14

A close friend of mine has had a car for 1/2 of his finance agreement and is planning on giving the car back to the finance company as he is trying to save himself some money and no longer needs the second car.

We need another car desperately but some silly mistakes years ago make getting any form of sensible APR finance difficult.

Is the following scenario legal?

I set up a standing order for the monthly payments of the car to my friend and pay the remaining 2.5 years of finance for him, keeping and using the car myself and then we keep the car at the end?

can i transfer the V5 into my name as soon as i have the car off him?

if this is legal we are both winners as he gets rid of the car and associated costs and we get a short term finance on the car at what is pretty much 0% as the total value of the car is actually slightly more than the remaining finance on it.

[TW]Fox · 2 Aug 2012 at 17:16

No, this is not legal. The car does not belong to him, it is owned by the finance company. He cannot give you the car or 'rent' the car to you. It's not his car.

ca9phoenix · 2 Aug 2012 at 17:24

I understand that the finance company own the car for another 2.5 years..... after that he can do what he wants with it.

but as long as the finance is being paid by him surely i can insure and drive the car myself?

[TW]Fox · 2 Aug 2012 at 17:26

ca9phoenix said:
but as long as the finance is being paid by him surely i can insure and drive the car myself?

Without permission of the owner?

ca9phoenix · 2 Aug 2012 at 17:32

probably worth ringing the finance company then, a bit of research and it would appear i can transfer the V5 into my name so i would be the registered keeper but not the owner.

Soulja · 2 Aug 2012 at 17:33

He can transfer the finance to you if you're willing to carry on the payments.

ca9phoenix · 2 Aug 2012 at 17:35

I would do that, but credit rating might be restrictive to doing it.

Probably best to give them a call and see what the finance company have to say over it.

therealnerd2 · 2 Aug 2012 at 17:37

ca9phoenix said:
We need another car desperately but some silly mistakes years ago make getting any form of sensible APR finance difficult.

Sounds like you're potentially about to make another silly mistake. Why not just get a cheaper car instead?

[TW]Fox · 2 Aug 2012 at 17:38

ca9phoenix said:
probably worth ringing the finance company then, a bit of research and it would appear i can transfer the V5 into my name so i would be the registered keeper but not the owner.

You do not have the permission of the owner of the vehicle to drive it!

[TW]Fox · 2 Aug 2012 at 17:39

Soulja said:
He can transfer the finance to you if you're willing to carry on the payments.

Only if the finance company allows it. Most do not.

For example, BMW Financial Services:

Can I transfer my agreement to someone else?
No - our agreements are non transferable.

Kenai · 2 Aug 2012 at 17:41

therealnerd2 said:
Sounds like you're potentially about to make another silly mistake. Why not just get a cheaper car instead?

This, if you have a poor credit history for one reason or another, is it really the best idea to be doing your damnedest to take on someone's elses finance deal because you can't get your own?

Just get something cheap and simple if you need a car, no point putting yourself in a difficult financial situation for something as inconsequential as a car.

ca9phoenix · 2 Aug 2012 at 17:46

Finances are no longer a problem at all, it's just waiting for the 6 years for certain things to fall off my credit report.

Our lease car is going back which is over £500 a month and this finance is £250 a month. I can get finance on another vehicle but at 20% and i refuse to pay that.

Hence trying to do it cheaper

Liquidfox · 2 Aug 2012 at 18:06

ca9phoenix said:
Finances are no longer a problem at all, it's just waiting for the 6 years for certain things to fall off my credit report.

Our lease car is going back which is over £500 a month and this finance is £250 a month. I can get finance on another vehicle but at 20% and i refuse to pay that.

Hence trying to do it cheaper

What about a bank loan? They're generally cheaper if you must have finance.

EDIT: Nevermind, read about credit history.

rodenal · 2 Aug 2012 at 18:11

You're best just to get something cash. Whilst it seems harsh that you can only get a higher rate (if at all) it makes sense from the lenders perspective.

All of my favourite cars have cost me less than £2.5k and bought cash so it needent mean you end up with something you don't want