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Selling car on finance..

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Basically I purchased a car on finance for my sister as she did not pass the credit check all is well she pays regular car payments on time into my account the only problem is i am now moving away and… Read More
aamr Avatar
7m, 1w agoPosted 7 months, 1 week ago
Basically I purchased a car on finance for my sister as she did not pass the credit check all is well she pays regular car payments on time into my account the only problem is i am now moving away and we live at 2 different addresses she is additonal driver as i am legal owner of the car. Can i just sell the car to her so its in her name and i will continue having payments taken out of my account as usual! The car is not on Hire purchase its mine to keep after 3 years 1 year is already over.. so no issue there we plan on keeping the car as usual. i rang finance company and they said the finance can't be swappedover but nothing about selling the car so can i?
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aamr Avatar
7m, 1w agoPosted 7 months, 1 week ago
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#1
that is hire purchase. you make payments for X months then you own it at the end. you do not technically own the vehicle until the finance is cleared.

you'll need to settle the finance in full before changing the registered keeper as the finance company have an interest in the car. if you pay the finance off then sure.
#2
I'm not 100% sure on this but can't you just put v5 in her name as it registered keeper not onwer? would that not work?
#3
As long as she is sufficiently insured, as in not a named driver but the main driver, there shouldn't be too much of an issue.
#4
To clarify, the vehicle IS on hire purchase and you do NOT own it, yet.

I don't see the problem with continuing as is.

You live at one address and are paying HP on a vehicle, your sister who lives at a different address is a named driver.

As long as your insurer knows the 2 addresses then I don't see the issue?

Continue payments until HP is finished, at that point you own the vehicle, transfer into your sisters name...?
#5
Glenn160
I'm not 100% sure on this but can't you just put v5 in her name as it registered keeper not onwer? would that not work?
No, because it will be against the T&Cs of the finance agreement, something to the effect of:

'You must not sell or transfer the vehicle until all payments due under this agreement have been collected'

and although in law the registered keeper is not the legal owner, it is generally considered that the person listed as the registered keeper 'owns' the vehicle. Whenever you sell a car its not like you produce a receipt, the v5 is usually the proof, even if not legally accurate. The finance company want to know that the person with the financial obligation secured against the car has the car in their possession, as what else would they reclaim if they failed to pay?
#6
I thought she could insure herself on your car as she has an insurable interest in that in alot of ways she is the owner of the car. you have a HP agreement for car and she has a HP agreement with you. contact the insurance company and see if that works
#7
chezzy
I thought she could insure herself on your car as she has an insurable interest in that in alot of ways she is the owner of the car. you have a HP agreement for car and she has a HP agreement with you. contact the insurance company and see if that works

I imagine the only 'agreement' between the OP and his/her sister is verbal.

IF so, then the sister has no legal bond to the vehicle surely?
#8
You can't sell the car to her without clearing the finance but you can register the car in ur sisters name. She then is the keeper of the car and liable for fines etc... But is not the owner only the keeper. As long as ur finance company knows that the car has been registered at a different address it's ok.
#9
She can insure the vehicle on her own policy, she does not need to be the owner or registered keeper, in fact if she is the 2nd driver on your policy but is in fact the main driver, thats known as fronting and is illegal
#10
dee_mcg_1
You can't sell the car to her without clearing the finance but you can register the car in ur sisters name. She then is the keeper of the car and liable for fines etc... But is not the owner only the keeper. As long as ur finance company knows that the car has been registered at a different address it's ok.
Thanks ill call them up and find out more
#11
mikey_d
She can insure the vehicle on her own policy, she does not need to be the owner or registered keeper, in fact if she is the 2nd driver on your policy but is in fact the main driver, thats known as fronting and is illegal
Yeah this is why i thought id check to see if it was at all possible but it was cleared with the insurance company they know i am owner but im not main driver she is.. so hopefully that shouldnt cause a problem we had a previous car and were both insured then changed insurance to this new car and have been with same
company so they are aware.
#12
aamr
mikey_d
She can insure the vehicle on her own policy, she does not need to be the owner or registered keeper, in fact if she is the 2nd driver on your policy but is in fact the main driver, thats known as fronting and is illegal
Yeah this is why i thought id check to see if it was at all possible but it was cleared with the insurance company they know i am owner but im not main driver she is.. so hopefully that shouldnt cause a problem we had a previous car and were both insured then changed insurance to this new car and have been with same
company so they are aware.
Should be ok as it is then, if you are listed as the 2nd driver it doesn't matter where you live, just advise them of your new address,

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