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Edwin Miles. Underwriting Manager

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Can you transfer car finance to someone else?

Hi, I am a stay at home mother/housewife, my husband and i recently sold our home and would like to get another mortgage but have hit a bit of a brick wall. We had lots of debt that we have now paid off so we are waiting for the credit rating to go up (real frustration, goes on fast enough but takes forever and a day to come off!!!!).

My husband has been left with one bit of debt in the form of car finance @ £310 a month. This is unfortunately stopping us from getting the bit extra we need for the house we would like as the mortgage is just going in my husbands name. I had the idea of maybe getting the finance transferred in to my name, but don't think this is possible?

If we are not able to do this i wanted to see if i could get a loan to pay the car finance and have the new loan in my name so we can get the extra in his name. Is this possible? My credit score appears to be excellent on credit expert. Or if you have any other ideas they would be most welcome, we are not in a position to pay this off unfortunately, it still has 4 years to run :0 Many Thanks

Posted by Bridget on

Answer.

Hi Bridget, thank you for your detailed question.

You're correct in thinking that you can't just transfer the finance agreement into your name so that's out of the question. The only options you have are to get a personal loan yourself to clear off the car finance as you say. You could also potentially sell the car to raise any extra deposit needed for the mortgage, clear the current finance and with whatever is left over buy a cheap runaround.

If you want to keep the car we do have lenders on our panel that help people in your situation. All we need to do is get you approved and with the funds received settle off the existing loan agreement. You can then personally start paying off the car yourself and this will free up your husdand to get the mortgage. Please apply for a personal loan with ourselves when you feel ready. Kind Regards, Edwin

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Question.

Hi there, I got asked a question by a freind, his friend has purchased a car from a private seller, and has recently found out that the car is on finance and hasn't been fully paid off. What will happen? Thank you

Posted by Michael Bullock on

Answer.

Hi Michael, the private seller shouldn't have sold the car knowing full well there was finance still outstanding and on the other hand your friend should have done a HPI check on the car before purchasing it which would have prevented this issue. Legally the car is still owned by the finance company that has an interest in the vehicle. You need to get the private seller to clear the finance with the money that you paid him for the car asap. Edwin

Posted by on

Question.

What if the seller does not pay the rest of the finance, what will happen to the car?

Posted by Michael Bullock on

Answer.

Firstly, if the seller doesn't clear the finance it will effect his credit record. I'd call the finance company asap and inform them of what's going on immediately. They can then apply pressure on the seller to clear the finance.

Posted by on

Question.

What would happen to the money that the buyer paid for the car, or how could he go about it?

Posted by Michael Bullock on

Answer.

It'd be a dispute to take up with the police. How did your friend pay for the car - Cash or bank transfer? If paid by cash was there a receipt signed by the seller?

Posted by on

Question.

Im not sure if he as a reciept but he did pay cash, but could you please advise me on both circumstances, if he has or hasn't got a reciept. Thanks

Posted by Michael Bullock on

Answer.

Hi Michael, if your friend has a signed receipt of some sort then there is proof in a court of law that the amount of cash paid was received by the private seller. If there isn't any proof then it's your word against the sellers as to how much cash was handed over for the vehicle. What has the private seller said when you have spoken to him / her? It may be worth having a good conversation with the first and ask them to clear the finance immediately.

Posted by on

Question.

Hi Edwin, I recently bought a car over a year ago and Finance the car in my name. I bought the car for the company I work for so it can be used as a pool car. I am now looking to leave the company in the next 5 months and do not want to take the car with me. Would it be possible to either transfer the Finance over or change details of the bank in which payments are being made from to the company. Are you able to help or advise please?James

Posted by James Cook on

Answer.

Hi James, the finance company won't allow you to change the name on the agreement - can the company purchase the car from you and you settle the finance agreement with the funds received? Alternatively the company can just ring up the finance company and clear the amount required or get a new agreement in their own name to settle the finance. This would be the most sensible way to do things. Kind Regards, Edwin

Posted by on

Question.

Hi Edwin, my stepsons Mum got a car on finance for her new husband. However, they have broken up unfortunately and he has taken the car which is registered in his name! Is there anything she can do re the finance payments as in stopping them? He is being unreasonable and she is worried that he is going to sell thr car. Thanks Fay.

Posted by Fay R on

Answer.

Hi Fay, firstly he won't be able to sell the car as it is on finance in her name. As your stepsons Mum has the finance in her name the car legally belongs to the finance company until all payments have been made. Please tell her not to stop the payments as this will ruin her credit history. I'd advise her to contact the finance company and explain the situation and get some advice from them as all finance companies have different rules and regulations. Looking back in hindsight she should have registered the car in her name or at least jointly with her husband. It's a bit of a strange case to be honest but good luck. Edwin

Posted by on

Question.

Hi Edwin, Last year i got a car with finance. Now i'm going in the armed forces and my brother wanted to take over the finance. Is their anyway i can transfer the finance to him? Any help would be greatful, Thanks Mike

Posted by Mike on

Answer.

Hi Mike, your current car finance company wouldn't allow you to do that unfortunately. The only way to resolve the issue is to get your brother to apply for finance in his name to buy the car from you. When he's approved we can use the funds to clear the current finance agreement and then the finance will be in your brothers name.

Posted by on

Question.

Hi Edwin, Hope you're well. I applied for an HP online for the car I have seen on the dealers website (they arrange finance as well). I have been approved but when I went there to see the car it doesn't exactly match specifications that website stated. When I asked the dealer if I can transfer this Hire purchase approval (I haven't signed anything yet) onto another model that I will like and I see they said it is not possible. So my question is if this is right or they are just trying to sell me this car and I am either taking this one or none. Or is it going to complicate things and the finance company may refuse agreeing to finance on another car? I need to give them an answer tomorrow evening before I go and sign any documents. I appreciate your quick response.

Posted by Ewawe on

Answer.

Hi Ewawe, it sounds like bullying tactics the dealer is using to try and get you into a car you don't want. If you have been approved for finance you can choose your car from any reputable dealer nationwide. The good news is that they have you approved and if that is the case i'm reasonably confident we can get you approved too. When approved with us you are free to choose any car from any dealer nationwide. I'd advise to stay away from the dealer that is trying to push you into a car that you don't want. Please let me know when you have made an application with us and i'll look at it for you. Have a great day, Edwin.

Posted by on

Question.

Hi Edwin. Thanks for a quick reply. I applied by hitting the apply button under the car on parks website. And they said it will be a problem to transfer it onto another car since that loan applied to the specific reg plate number. I applied for finance with a different garage but been refused due to some problems with the address I was registered to vote at untill last April even though I wasn't staying there since 2009 (simply forgot I was registered there but as far as I know there was no outstanding bills etc to pay so I should have clean sleve). So I still don't know if in my case the transfer would be a problem. Best regards

Posted by Ewawe on

Answer.

Hi Ewawe, where are your current credit agreements registered? At your new address or your old address? If you do get declined by us you're acceptance will still be valid with Parks so you have nothing to lose. Please apply on our site so we potentially can get you a deal where you can select the car you want. Edwin

Posted by on

Question.

Everything is registered in my current address. I will try to apply. But won't it damage my credit score if it's get declined?

Posted by Ewawe on

Answer.

Hi Ewawe, it will leave a footprint on your credit file but it shouldn't damage your current rating. Also if you get declined you still know you have an acceptance at Parks. However, it is possible that we can get you approved. Edwin

Posted by on

Question.

Hi Edwin, I've recently (3 months ago) got a car on finance however I cannot afford to keep the car due to high running costs and high insurance costs etc. Can i cancel the agreement? What are my options?!?! I'd be happy to transfer it to a smaller cheaper car or terminte it all together. Please help!

Posted by Dave on

Answer.

Hi Dave, you won't be able to cancel the agreement unfortunately. The only thing you can do is sell the car or trade it in for another at a local dealer. How much is the car worth (trade value) and what is the settlement figure you owe the finance company? Edwin

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Question.

My brother wants me go get him a Audi Q7 on finance under my name as his credit score is bad. The price is £56.000 and I don't mind doing this, but in October this year I want to go for a mortgage and do you think this will affect my chances of getting a mortgage? Also can I transfer a finance onto his name after several months as he will be paying the car finance anyway? Thank You.

Posted by Ella on

Answer.

Hi Ella, thank you for your question.

At a push i'd advise you to make a joint application with yourself acting as a co-hirer / guarantor for your brother. However, if your brother doesn't keep up with the monthly repayments this could indeed effect your credit score which could damage your chances of getting a mortgage.

£56,000 is an incredible amount of money and your brother should be applying for this amount in his own name really. As he has bad credit we also may not be able to get him this amount even though the amount he can borrow also depends upon his income.

In a nutshell i'd politely decline your brothers request. Kind Regards, Edwin

Posted by on

Question.

Hi, I've had my car on finance for over a year now. I'm not happy with how unworthy the car is and the amount of money I am paying. The value of the car is not worth what i will be paying at the end of my finance. I've had nothing but trouble with this car. I would like to hand this car back and start a fresh. How should I go About this?

Posted by Annie on

Answer.

Hi Annie, all you could do is part exchange the car in at a local dealership and purchase a new car. You can't just hand the car back. What is your car worth approx (trade value) and what do you owe the finance company? Edwin

Posted by on

Question.

The cars worth around £3000 but i will end up paying £10.000 when it finishes. I wouldn't mind but I feel I've been stung with the apr %. I would just like to get away from the company all together. Would it be more efficient to get a bank loan?

Posted by Annie on

Answer.

Hi Annie, a bank loan my be a possibility but you need to ring your current car finance company and request a settlement figure. This will be lower than £10k. That's only payable if you keep the car over the whole term which you're not planning on doing. Please keep me posted. Edwin

Posted by on

Question.

So your saying get a settlement figure and pay the car off? 10k Is a ridiculous amount for what I've got . Thanks for all your help

Posted by Annie on

Answer.

Yes - settle the current agreement and get a new one with a better rate etc :-)

Posted by on

Question.

Hi, i'm wondering if someone can help. At the moment my car finance agreement is all in my mums name but i'm the one paying the finance off.

I know i can't change the car finance to be in my name but can i change it to come out of my own bank as it would make life alot easier? Thanks in advance.

Posted by Jen on

Answer.

Hi Jen, thank you for your question.

It is worth asking your current finance company whether changing bank accounts is possible. It all depends upon which finance company your agreement is with. I know some won't allow this but others may.

If that isn't an option you could always get a new agreement in your name (you never know we could get cheaper payments for you) and we'd settle the existing agreement off. Please apply if/when you feel ready and remember we can potentially beat dealer rates and offer a no obligation quote. Edwin

Posted by on

Question.

Hi Edwin, I have around 15 months on my car finance agreement left and I have just moved out a house I shared with my ex partner.

I have got a wee house but with the cost of living these days it's gonna be a struggle so I have spoke with my car finance company and they are happy to go ahead with the voluntary termination so that I can buy a wee runabout for a year or so.

I was talking with a friend who had the idea of me keeping the car and getting it insured in her name and she would transfer the money to my account each month. Is this allowed? Thank you in advance

Posted by Paul Carroll on

Answer.

Hi Paul, thank you for your question and while i understand what you're trying to achieve it isn't technically possible or that wise to do.

The agreement is between yourself and the finance company and legally until all payments have been made the car belongs to the finance company. As i'm sure you can imagine friendships can break down and the last thing you'll need is your friend claiming some form of title / ownership over a car that isn't hers.

Also if your friend stops making the payments each month you'll be liable and it could impact your credit score. The best way out of this would be to get your friend to apply for finance with us or her bank etc. If we get her approved we'll be able to get a finance agreement in her name to clear your outstanding finance agreement. Hopefully you aren't in negative equity (where you owe more than the car is worth). How does that sound? Kind Regards, Edwin

Posted by on

Question.

Hello, If my brother gets finance on a car can I register and insure it under my name?

Posted by Christopher Miles on

Answer.

Hi Christopher, thank you for your question.

If your brother is the one financing a car in his name he'll have to be the registered keeper on the V5 registration document. He'll also have to be insured to drive the vehicle. You can be a named driver on the insurance policy though so you can drive the car. I take it the car will be for your brother?

Please get your brother to make an application and if approved he can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hi, I took finance out on a car for my partner who has recently split with me but he won't give the car back.

The finance and log book are in my name but he is insured to drive it. How do I go about getting this resolved??

Posted by Sarah King on

Answer.

Hi Sarah, thank you for your question and apologies for the delayed response.

I think this is a matter possibly for the police. If the car is registered in your name on the V5 and the finance agreement then there is no question that the vehicle belongs to you (In fact the car belongs to the finance company until all payments have been made).

I'd use the threat of calling the police unless the vehicle is returned and if he still doesn't return the car then it will leave you with no option. I'd also ring your finance company to let them know what's going on. If your ex-partner wants to keep the car he simply has to get a loan himself to settle the existing agreement you have. Sorry there isn't a simpler answer. Kind Regards, Edwin

Posted by on

Question.

Hi, I've got a car on finance for my sister in law in my name as I have a good credit score. The V5 is in her husbands name and the payment comes out my bank each month which she then pays into my account.

However, I have since found out I can't swap my mortgage because of the finance in my name. I need the car out of my name and into her name. Is that possible or a way to get it out my name? Thanks

Posted by Tony Black on

Question.

Hi, Last year a friend of mine suggested that I take over the payments of her car, as she couldn't afford to pay it anymore.

The agreement was to stay in her name whilst I set up a standing order into her account to cover the monthly payments. I was able to get the logbook in my name, and I have taxed and insured it.

Recently, it transpired that the finance is actually in her brothers name! She has now said that the finance company know he doesn't have the car anymore, and so want me to pay the outstanding balance on the car straight away (to her, as she won't give me details of the finance company). Or the finance company will phone the DVLA, get my address and come and get the car back. Is this right? What can I do? Is there any way I can find out what finance company own my car? Thanks.

Posted by Nic Howells on

Answer.

Hi Tony, thank you for your question and apologies for the delay in responding.

The only way out of the agreement is to sell the car and settle the finance or get your sister-in-law and her husband to get a new loan agreement via ourselves (or their bank) so that they can keep the car and we can clear the outstanding finance agreement.

We do indeed have lenders on our panel that help people with bad credit scores so we should be able to get them both accepted. Please get them to make a joint application and if approved we provide a no obligation quote. Kind Regards, Edwin

Posted by on

Answer.

Hi Nic, thank you for your question.

It is a bit of a strange situation you find yourself in but one in which i can help. To find out which finance company owns the car you simply need to do a HPI check on the vehicle. Just Google HPI Check and you can pay £19.99 - this will then tell you the finance company has an interest in the vehicle.

The problem you will have though is that they won't talk to you but only your friends brother. I would definitely advise against paying your friend the sum owed to the finance company (as this figure may not be accurate).

To get out of the situation you can indeed get finance yourself via us on the car. We simply need a settlement figure from the current finance company, we'll then get you accepted and once you've signed the new agreement we'll clear off the existing finance with the current supplier. The car will then be yours.

Lastly, i've never heard of the finance company calling the DVLA and getting your address to come and collect the car! I have a feeling that the payments you've been making to your friend haven't been getting to her brother. This means the finance company haven't been paid for a while so they want the car back (as they legally own the car until all payments have been made). I hope this all helps. Please make an application when you're ready. Kind Regards, Edwin

Posted by on

Question.

Hi, my sister has bought a car on finance, unbeknownst to her, her now ex partner registered the car in his name. Today he left my sister and took the car.

She tried to get the police to stop him taking the car but all they did was get him to sign a scrap of paper saying he will pay for the car. Is there anything we can do?

Posted by Pauline Norbury on

Answer.

Hi Pauline, thank you for your question.

That is very strange indeed. Just because the V5 (registered keeper document) is in your sisters ex partners name means nothing. It doesn't legally mean he owns the car at all. Has your sister been making all of the monthly finance payments or did her ex-partner make these payments?

The car legally belongs to the finance company until all payments have been made so, it may be worth putting in a call to them for advice and taking some legal advice from a local solicitor. If your sisters ex-partner wants to keep the car he should get a new agreement in his name to clear the current finance agreement. I hope the mater gets resolved quickly. Kind Regards, Edwin

Posted by on

Question.

Hello, I am unable to get car finance due to defaults on my credit file which will not clear until 2019.

It has been suggested that I could ask someone with a clean credit file to do it for me. Does this mean that the direct debit must be in the third parties name?

Can it not go through my Bank account. It seems a lot to ask someone to pay a finance company and then accept a standing order from me. Can this be done?

Posted by Edward Morrison on

Answer.

Hi Edward, thank you for your question.

Unfortunately, we can't advise you to take out the finance for a car in someone else's name. The person financing the car should be the one paying for it and should be the person driving the vehicle.

The good news is that we help people with defaults so why don't you make a joint application with the person who has good credit? We'd have a better chance of getting you approved and that way you can pay for the vehicle and build your credit profile back up.

Please make a joint application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

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