Car finance in someone else name

susie05

Hi all thanks for taking time too read
Basicly we can't get credit due too a number off financial issues years ago.
We are now in a good position both husband and me working in secure jobs.
But still we can't get credit.
We are driving a 14 year old car on last legs which we need for work.
A brother who knows our situation offered too give us his car that he has on finance (his wife just bought a new one so they don't need)
He just told us too transfer money too his account each month
Sounds too good too be true too me...I don't think we could insure that car if finance in someone else name , he said he would transfer the logbook ?
Just looking for any advice as it seems too good too be true and I don't want too do anything wrong

Pelvis

Don't mix family and finance.

If you're in a good financial position then start saving to get an upgrade, between the two of you that shouldn't take long.

mickdw

These kind of arrangements have been done but often result in fallout as if you were to start missing payments it would be rather awkward.
If you do plan to go ahead, you need to consider what thr car is worth versus what is owed on it.
I would agree a price for the car then check the finance. If too much still owed, get him to pay it down to agreed amount before you take it on.
If too little owed, you can give him a cash payment.
If he signs over the logbook to you at start, the risk is all on him to be honest but it certainly can result in family fall out. If its your only option though, there is little to stop you doing it.
If the engine was to go after 2 weeks. What happens then. Do you keep making payments on a useless car? Would he expect you to keep making payments - thats how people fall out.

goldenhoarde

First off find out if its a loan or f the car is on finance with a dealer/bank/manufacturer

If it was a loan then chances are nothing is attached to the car. In that case the bank/cu will only be after him so as long as you pay monthly its his issue

If its finance then if he doesn't pay then they could seize the car.

Brother in law and sister in law did it and it worked but it was a bank loan that he just paid off the monthly payments.

Any issues could cause family fallouts so thread carefully being sure you can meet any obligations for the duration

susie05

Thanks for all the helpful replies which I will take on board
From a car finance point off veiw will we be able too proberly insure a car that the finance is in brothers name...is it legal and would I be cover if god forbid we had an accident ?

Max Prophet

Did you try PCP ?

mickdw

susie05 wrote: »

Thanks for all the helpful replies which I will take on board
From a car finance point off veiw will we be able too proberly insure a car that the finance is in brothers name...is it legal and would I be cover if god forbid we had an accident ?

As someone said above. Find out if its car finance or just an unsecured bank loan. If normal bank loan, it probably wont be secured against the car so it wouldnt have anything to do with your car other than that you are randomly paying your brother some money each month for whatever. It wqould be your car to insure in your name once you have logbook signed over.
Car finance might be trickier but find out first which it is.
How much is this car worth roughly?

jimmycrackcorm

susie05 wrote:

Thanks for all the helpful replies which I will take on board From a car finance point off veiw will we be able too proberly insure a car that the finance is in brothers name...is it legal and would I be cover if god forbid we had an accident ?

Insurers normally ask if you are the owner of the vehicle. You could get named on his policy for the car, or you can actually transfer the log book into your name.

pilly

It all depends on what type of loan he has. You need to find that out.

susie05

As far as I know car was bought through a main dealer via the finace company they use

pilly

susie05 wrote: »

As far as I know car was bought through a main dealer via the finace company they use

Well then it's a problem, he can't legally transfer the vehicle to you.

susie05

pilly wrote: »

Well then it's a problem, he can't legally transfer the vehicle to you.

Thanks I don't know much about these matters but I have a feeling this might be the case.
Looks like I will be keeping our old banger and hope it doesn't give up complely

susie05

Max Prophet wrote: »

Did you try PCP ?

No I'm not trying anymore as we have been rejected from boi and several dealers who tried finance
It embarrassing and you just feel rejected and frustrated after.
We have the means and the letter from work etc all grand on that end. It's just old stuff from years ago that's effecting us now

Max Prophet

susie05 wrote: »

No I'm not trying anymore as we have been rejected from boi and several dealers who tried finance
It embarrassing and you just feel rejected and frustrated after.
We have the means and the letter from work etc all grand on that end. It's just old stuff from years ago that's effecting us now

PCP has a v low rejection rate

Stheno

susie05 wrote: »

No I'm not trying anymore as we have been rejected from boi and several dealers who tried finance
It embarrassing and you just feel rejected and frustrated after.
We have the means and the letter from work etc all grand on that end. It's just old stuff from years ago that's effecting us now

It takes five years for bad credit to be removed from your credit ireport

Get a copy of your credit report and see what not says

source

susie05 wrote: »

No I'm not trying anymore as we have been rejected from boi and several dealers who tried finance
It embarrassing and you just feel rejected and frustrated after.
We have the means and the letter from work etc all grand on that end. It's just old stuff from years ago that's effecting us now

How long ago did the other stuff get resolved?

susie05

source wrote: »

How long ago did the other stuff get resolved?

Morgage arrears were recaptaltised about 4 years ago and we are back on full payments
We had 3 credit card debt which we entered arrangements for. One was completely cleared last month the other 2 are paid every month. We have been doing that for 4 or 5 years now. The debt was racked up around 2006/2007
But we only entered proper arrangements around 4 - 5 years ago
Like our life now compared too back then is completely different. We now are very careful with finances and both work in secure jobs.
Alot of it was we borrowed because it was available and we were young and dumb

pilly

It's worth requesting your credit report from the ICB, then you'll know what's showing up on it and when it will be gone.

mickdw

Brother could get credit union loan to clear off his car. That is a regular request as people do this in order to sell or hold onto pcp cars after initial 3 years.
If they gave this unsecured loan, he could transfer the car to you and then do as expected re paying money into his account monthly or better still - he and you go to credit union. You take out loan to buy his car and he goes guarantor on it. Same risk for him as allowing hou to pay him but you will be building up good credit and own the car properly

phormium

Do you have a credit union account? If not open one, while credit unions will also look at your icb they are far more willing to listen to an explanation and give someone a chance if things are back on an even keel now.

Toots

phormium wrote: »

Do you have a credit union account? If not open one, while credit unions will also look at your icb they are far more willing to listen to an explanation and give someone a chance if things are back on an even keel now.

+1 for the credit union, they might want you to build up savings for a few months before lending you anything, but they will look at each application on a case-by-case basis, rather than a straight "computer says no" if you don't pass an ICB check.

susie05

Thanks all for taking the time to reading and replying iv read every one.
Pity it looks like the finance wouldn't work out legally.
Not going down the credit union route as we were turned down flat by them last year based on icb unfortunately even though u had a/c.
Thanks all
Looks like no improvement for us in near future

mickdw

Whats your current car and what is brothers car.
You can get a very respectable car now for tiny money if need be