How to sell car bought by finance? (UK)

February 7, 2010 4:45 PM

I'm paying for a car registered in my name, however the finance deal is in my partner's name. This is causing problems and I would like some advice.

3 years ago my car was written-off in an accident. I needed it for commuting to/from work and couldn't afford to buy a car out-right so started looking to purchase a car on finance. I found one but at the time my credit-score wasn't the greatest, so my partner purchased the car in her name. Since then I've been paying the money into her bank account before it is collected by the company who currently owns the finance agreement.

The financial situation has become an issue of contention in our relationship, causing arguments and even threats of a break-up.

This week my partner's car failed it's MOT. She needs a new car yet is unable to buy one on finance because of the current arrangement.

I need to find a solution to the problem; two come to mind:

a) sell the car and buy another in my own name, or
b) move the finance to "me" somehow.

This is the first time I've had a "new" car, so I'm not sure of my options.

Is it possible to sell a car that's currently under finance? Would a dealer buy the car from us, allowing me to pay off the finance with the money? Would it be possible to move the finance agreement to me? Are there any other options open to us?

The only other option that comes to mind is to take out a loan to settle the current finance agreement. I don't feel this would be a good option, however. Typical loan rates mean the best deals are taken over 5 years. There are only 2 years left with the current agreement. So, while I'd be fixing the immediate problem of moving the finance out of my partner's name I'd be paying a lot more in the long-term for a car I'd ideally like to replace with one more suited to my current & future needs.

Any advice?

posted by refactored to Work & Money (4 answers total)

Would she want to take over the car, continue payments on her own and you buy an entirely different car for yourself with your own credit (I am assuming not)?

Yes, you can approach the finance company and ask to have the finance transferred to you but it depends on their own policies and your credit-worthiness. You can even see if a third party will take over the finance so you both can get different cars (called leasebusters or financebusters in Canada, I do not know what the UK equivalent is)

As to your third option, if it is your car and your partner did you a favour it is time to pay her back and take out a loan if necessary to settle the debt, even if you end up paying through the nose. She did you a favour and is now calling it in, you really don't have a choice.
posted by saucysault at 4:55 PM on February 7, 2010

Go to a bank and get your own financing for the balance of the loan left on your partner's financing. If you're going to pay the car off within 2 years anyway, then I wouldn't worry about getting the best deal (as long as it's not ridiculously high). Even if you take out financing for an additional 5 years (I don't know why you would), you could still pay it off in 2 years and call it done.
posted by eatcake at 8:22 PM on February 7, 2010

In my case, I bought and financed the car that my boyfriend and I shared, but he drove it 90% of the time. Then I wanted my own car, so he bought and financed another car. We're driving each other's cars, essentially. We're both on the insurance for both cars.

If your relationship is stable, then you could buy a car in your name for your partner to drive. You'd each have a loan, and a car.

If things are't that stable, I'd caution against this, and recommend following some of the other advice re: getting the car put into your name. I say that because if you break up, you'd have to swap cars so that you have the one you officially own, and that might turn nasty.
posted by cabingirl at 7:12 AM on February 8, 2010

What eatcake said. I actually did this several years ago to take over payments on a car that my parents had originally financed. I also ended up getting a significantly better rate than the initial finance company had been charging my parents.
posted by lucky25 at 9:07 AM on February 8, 2010