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Paying off loan as registered keeper but not legal owner

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racheltaylor gices
racheltaylor 22 Sep 2014

My mum got me a car on finance in her name back in 2010, so she is the legal owner but I am the registered keeper.

She paid the loan for 3 years and then because I wanted to keep the car I decided to carry on with the final 3 years, starting 2013 until the car is all paid up.

The finance company wouldn't make me the legal owner but instead of the payments coming from my mum and her bank, I have been making payments from my bank by direct debit.

We have since fallen out and now I do not know where I stand as far as ownership of the car once its been paid?
I do not wish to continue to pay for the next 2 years only to have my mum take the car away.!

So is my best bet to sign the V5 over to my mum and cancel my direct debit and obviously hand her the car or because it shows I've been making the payments would I have a good chance of keeping the car and becoming the legal owner??



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2900 members . 1218 topics . 2221 posts
Jock 03 Nov 2019

Am I missing something?

My girlfriend owns two cars on Finance. She wants to give me one as a gesture of part payment for approximately the half of money I loaned to her. This car has got 3 months finance outstanding which she is in agreement to continuing to pay until settled. She will transfer the 'Log Book' now so that I become the registered keeper and also a self-written signed document will be drawn up stating that she wants me to become the registered owner when this becomes legally possible ie the car has no finance outstanding. Am I missing some or many unforeseen legal problems Thank you.

[Migrated from previous topic 12740 dated 05 Dec 2016]

gices 24 Sep 2014

As long as there's outstanding finance, the car belongs to the finance company. Once that is paid, ownership will automatically be transferred to your mum.

Maybe in 2 years' time, you'd have already reconciled with your mum but if that doesn't happen and she claims ownership of the car, you'd still be able to show you've been paying towards the debt through the direct debit.

Now it can be a stressful process to prove and reach a settlement where you're considered a co-owner since your mum has paid for 2 years and you've paid 3 years and if you're not able to buy your mum's share of the car (the would-be-then value of the vehicle), then it would need to be sold and the money divided between the two of you. You will have to get a solicitor involved as well.

So maybe the best solution would be to ask her to give you the money you've paid towards the car and hand the vehicle over to her.