So my better half is selling her car to her sister and there is still some finance still outstanding on the car, but the sister is happy for my missus to carry on paying the finance until it ends.

Does anyone know if this is ok and if there could be any issues apart from the obvious nonpayment?

Until the finance is cleared she doesn't own the car, therefore she can't sell it. I would clear the finance prior to selling the car, that way you're all clear and the finance company aren't going to come and take their car back.

If one sister pays the other to pay the finance and does not tell the finance company, what is happening with the V5,

is the sister with finance staying the Registered Keeper, person insuring the car as the Registered Keeper and main driver, 

putting her sister on as a named driver, car kept at etc etc 

 

The finance needs cleared or all sorts can go wrong....

If one sister pays the other to pay the finance and does not tell the finance company, what is happening with the V5,

is the sister with finance staying the Registered Keeper, person insuring the car as the Registered Keeper and main driver, 

putting her sister on as a named driver, car kept at etc etc 

 

The finance needs cleared or all sorts can go wrong....

 

The registered keeper on V5 doesn't have to be the owner

No because the Finance Company is the owner in this case and the Registered Keeper is the person paying currently.

 

The Insurance Company wants to know who the keeper is and the main driver and where the car is parked overnight and even during the day, 

commuting etc.

You can transfer the finance over. The finance companies can be flexible, after all they just want their money.

Ive told the missus to get a 0% credit card and pay the remaining balance of with that. Saves the possible hassle with the finance company. Cheers for your input though guys muchly appreciated!

So my better half is selling her car to her sister and there is still some finance still outstanding on the car, but the sister is happy for my missus to carry on paying the finance until it ends.

Does anyone know if this is ok and if there could be any issues apart from the obvious nonpayment?

That doesn't make much sense to me. If your Mrs has sold the car to your sister how and why would she be keeping paying the finance on it? Unless of course she is taking the money from her sister and for some reason not using it to clear the finance straight off. Crazy idea.

Far better for your Mrs to clear the finance herself prior to the sale (although doesn't sound like she has the cash available to do this) or get the sister to ring up the finance company direct and pay it off as part of the sale with any equity coming to your Mrs.

As others have said until the finance is clear technically the finance company own the car so it can't legally be sold to any third party.

Ive told the missus to get a 0% credit card and pay the remaining balance of with that. Saves the possible hassle with the finance company. Cheers for your input though guys muchly appreciated!

Just get her sister to pay off the finance direct. Why apply for a credit card that isn't needed?

Sounds to me like sister is planning on making monthly payments to the wife, who is then expected to pay the finance payments accordingly until the car is paid off. In the meantime sister gets to use a car which isn't hers without the responsibility of actually owning one. Not something I'd be overly comfortable with if to be honest.

Think i did not explain it well enough lol

My missus has her corsa 1.2 of which the finance doesnt run out till may next year, which once up going to sell so we can purchase a 2nd family sized car.

Her sister is currently learning to drive and asked if she could buy the car when we come to sell it. By then she would have been ready to pass her test.

Anyhoo turns out she is ready for her test now (she didnt anticipate picking it up that quick) so my missus said well you can buy the car now if you want.

So the idea is the sister would pay my missus the money for the car and instead of clearing the finance with that money buy another vehicle of the same value and just carry on with the monthly payments for the corsa.

I was never keen and the credit card seems the better option as the missus is pretty much garanteed an acceptance whereas the sister has less chance of being acceptd for the continuance of the finance.

Hope the situation seems a bit clearer!

If your sister is paying you for the car, then why don't you just clear the finance with the money she pays you for the car? That way she'll actually own the car she's paid for. I can't see any benefit in withholding the finance money and doing [anything else] with it, and then continuing paying the finance monthly? If you're going to buy a new car then that's something you'll possibly need finance on as well, and having two finance agreements against your name while only having one car is "interesting"...

 

But, whatever you want, I suppose...

If your sister is paying you for the car, then why don't you just clear the finance with the money she pays you for the car? That way she'll actually own the car she's paid for. I can't see any benefit in withholding the finance money and doing [anything else] with it, and then continuing paying the finance monthly? If you're going to buy a new car then that's something you'll possibly need finance on as well, and having two finance agreements against your name while only having one car is "interesting"...

But, whatever you want, I suppose...

The plan is to buy a car with the same value of the corsa.

The finance is going to be cleared now anyway.

Edited 30 May, 201610 yr by Glynn

At a guess because the op wants a chunk of cash to buy a new car and this saves him taling out another loan?

...

The finance is going to cleared now anyway.

 

 

Best solution all round. Even in the happiest families money can cause BIG problems. Don't let it.

Think i did not explain it well enough lol

My missus has her corsa 1.2 of which the finance doesnt run out till may next year, which once up going to sell so we can purchase a 2nd family sized car.

Her sister is currently learning to drive and asked if she could buy the car when we come to sell it. By then she would have been ready to pass her test.

Anyhoo turns out she is ready for her test now (she didnt anticipate picking it up that quick) so my missus said well you can buy the car now if you want.

So the idea is the sister would pay my missus the money for the car and instead of clearing the finance with that money buy another vehicle of the same value and just carry on with the monthly payments for the corsa.

I was never keen and the credit card seems the better option as the missus is pretty much garanteed an acceptance whereas the sister has less chance of being acceptd for the continuance of the finance.

Hope the situation seems a bit clearer!

Thanks for clarifying :-)

It's pretty much as I thought, selling the car but not paying off the finance and using the cash for another purpose (in this case another car). It's a very bad idea unfortunately.

It's full of potential pitfalls. If you want a new car then get the sister to pay off the finance on the corsa as she buys it so then owns it outright with no potential for fallout. Then take out finance to buy your new car, or even fund it on this 0% credit card you are thinking of, provided you are disciplined enough to pay it off before the 0% promotional offer ends. Then everyone owns the car they have bought. Hope that helps! :-)

Thanks for clarifying :-)

It's pretty much as I thought, selling the car but not paying off the finance and using the cash for another purpose (in this case another car). It's a very bad idea unfortunately.

It's full of potential pitfalls. If you want a new car then get the sister to pay off the finance on the corsa as she buys it so then owns it outright with no potential for fallout. Then take out finance to buy your new car, or even fund it on this 0% credit card you are thinking of, provided you are disciplined enough to pay it off before the 0% promotional offer ends. Then everyone owns the car they have bought. Hope that helps! :-)

I said to SWMBO that if your going to keep on the monthly payments, you might aswell do that on a 0% credit card and not have the drama of the finance going tits!

This also leads onto the next question... what car to buy next? But thats for another thread!!

I said to SWMBO that if your going to keep on the monthly payments, you might aswell do that on a 0% credit card and not have the drama of the finance going tits!

This also leads onto the next question... what car to buy next? But thats for another thread!!

Just read through this and thats the solution i had in my head!

Ofc it depends how much the finance is for and other things, but a 0% credit card might just buy you the time you need.