Car Finance

This topic contains 3 replies, has 2 voices, and was last updated by Stuart Masson Stuart Masson 4 days, 8 hours ago.

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  • #107176 Reply

    Decoursey

    Someone else paid some of my hire purchase instalments do they own some of my car?

    Basically I purchased a car in my name for my son who has stopped paying for it and refused to return the car.

    The police say that it is a civil case and that I cannot report him as having stolen the vehicle.

    Is this right ?

    Regards

    Dec

  • #107211 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    No, the car is owned by the finance company until it is paid off in full. Ownership then transfers to the person taking out the finance, regardless of who has been making the monthly payments.

    What you are describing is an accommodation deal, and most finance companies will no longer allow it.

    What the police have told you is correct – you gave the keys to your son and so you can’t really consider it to be stolen, unless you have some kind of written contract with him (which I assume you don’t).

  • #107455 Reply

    Marc

    Hi Stuart

    I am currently in my last year of my PCP and soon I will soon be terminating my agreement with BMW (they have recently confirmed I am within the allocated milage).

    There are some small scratches which I am hoping will be classed as wear and tear. However there is a small dent on the bonnet (looks to be caused my stone) and one of the allows is pretty scratched up. I am sure they will try and charge me for this.

    In your experience, if/when they try to charge me for these repairs, would they be reasonable with this and charge a typical going rate, or are they likely to try and sting me for more?

    I was considering having the repairs done myself before I terminate the agreement, however if they are likely to be reasonable and charge me what I’d pay someone else anyway, I may as well just give it back and wait for the bill to arrive.

    I appreciate its a bit of a grey area, but any advice would be appreciated.

    Many thanks

    Marc

    • #107584 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      Hi Marc. The reality is that the finance company will not actually repair your bodywork or alloys; they will simply charge you whatever they decide it would cost to fix. They will send the car to auction as-is and the dealer buying the car at auction will then get any repairs done before selling it to the next customer.

      If you think that the damage is significant enough to be chargeable, then it is usually cheaper to get it done yourself rather than the finance company billing you at whatever rate they decide.

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