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Thread: Car Finance problem - Advice needed

  1. #1
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    Car Finance problem - Advice needed

    I have a problem and wondered if anyone could help. A friend bought a car on finance with her husband as a joint policy. They have since seperated and he has taken the car but has stopped paying the loan. He has cancelled the direct debits and so far has missed one payment. The loan was £175 a month over three years and six repayments remain unpaid.
    My friend has asked about having the car repossessed but the finance company say this would require both persons permission, which won't happen from his side. They are not very keen on repossessing the car as two thirds of the debt have been paid, the car is worth about £1500 and it is likely that court action would be necessary.

    I am wondering what options she has. She can get the car back as she has a spare key. The car is registered in his name on the log book and the finance company reckon she would not be breaking the law taking the car back without her husbands permission. But I have been told this would be breaking the law.

    But then what could she do if she gets the car back. Would it be hers, can she sell it even if she pays off the outstanding finance and once the car is paid off would it be his as it is registered in his name?

    The finance company have agreed to send her a letter saying she can sell the car as long as any income from sale is immediately paid to the finance company.

    Has anyone any experience of a similar situation or advice on her best course of action please?

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    First off, If the V5 is in his name then she can not simply take the car. If he reports it as being stolen then she will be arrested, whether she can prove she has paid it or not. In the eyes of the law and the DVLA the vehicle is not hers to sell.

    What I would do is approach the finance company and offer to pay a final lump sum of £525 as settlement for her half of the loan agreement. The company would then pursue her ex for the remaining amount. The company is not inclined go for that and they could still demand the full amount and sell the remaining balance to debt recovery. However finance companies aren't stupid and would rather have half the money paid and only have to pursue him and the lesser amount owed.

    Any wranglings over who owns the car etc between her and the ex would then need to be sorted out through small claims.

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    I thought the new v5s state that it's not proof of ownership and just details who is responsible for taxing and registering the vehicle?

    if so, can she not say he doesn't own it. would imagine taking it could still be viewed as theft though.

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    The v5 is not proof of ownership, just the registered keeper, therefore if your friend has a receipt for the car she is well within her rights to call the police and report the car stolen herself. Just because the log book's in his name doesn't mean that he can steal the car!

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    Hi, my friend is not interested in the car itself. The main thing is to clear the debt before things get ridiculous. The only way either of them can afford to pay off the debt quickly is sell the car.

    Could she sell the car (legally I mean) without the log book and with a letter giving permission from the finance company?

    Thanks for the interesting replies.

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    i would trust Prior advise as he has a certain incite into what is against the law and what is not. And more importantly his point is far more logical, not to mention far less confrontational. in situations shit like this will get heated 500 is not the end of the world get over it and move one and tell her to claim that shit back in court.

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    Whilst the V5 is not legally binding as proof of ownership in the eyes of civil courts, hence why its still possible to argue ownership of jointly purchased vehicles in small claims, as far as the law is concerned in the early stages, it is.

    In terms of selling the vehicle without the V5, it is possible as the new owner applies for a new V5 in their name for a fee. The previously held keeper is then contacted and if they if there's no contest it then a new one is issued. However that's whats used for abandoned vehicles, you would never use that in this scenario as I don't know anyone in their right mind who would buy a car in those circumstances.

    If she is dead set on selling the car to pay off the finance then she really needs to be discussing the issue with her ex and gaining his agreement. If he refuses that my original point still stands and if she wants to recover any money.. small claims.

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