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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47417
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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Madam, My name is ***** ***** a car on finance. I

Resolved Question:

Dear sir/ madam,
My name is ***** ***** a car on finance. I sold that car to one of my friend for £10,840. We signed agreement that she will pay me £2500 as deposite and £203 every month in instalments. After 9 weeks car developed a fault in gear box. She stopped monthly payments and held me responsible that I sold her faulty car and asking me to finish agreement and pay her deposite and one instalment. Otherwise she will take me to court that I sold her that car illegaly .there is a clause in the agreement :
This loan agreement is made in connection with the purchase of security by the borrower, from the lender. The lender will transfer title to the security to the borrower upon execution of this agreement . The lender will retain a security interest in the security until payment of full amount of the loan is made by the borrower.
I told her I can only pay to the finince company when she will pay me full amount and I will provide HP clearance certificate . But she is going to take me to the court on the basis that I sold the car illegaly.
Could you please tell me what should I do, and what chances I have to take my car back from her. Thanks
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.
Expert:  Ben Jones replied 1 year ago.
Did you have a formal agreement with your friend, in writing?
Customer: replied 1 year ago.
Yes i have agreement with me and it was signed by her.
Expert:  Ben Jones replied 1 year ago.
Did you advise the finance company that you were selling the car?
Customer: replied 1 year ago.
No i did not inform them. I am paying regular instalments. Actually i bought that car to start cab business with Uber. Later I found out that Uber do not accept that car at their platform. So I had to get another car which I got. So she just ask me that if she will be paying me every month so we agreed. And we signed contract . And now car developed a fault and she stopped paying me and I can not take car back without court order. She want me to pay her back 2500 plus the one instalment she paid to me.
Expert:  Ben Jones replied 1 year ago.
Legally you would have had to inform the finance company and obtained their consent to the sale, then you would have had to pay off the finance either before the sale or as part of the sale. It is indeed illegal to sell a car which has finance outstanding on it. So in this case the car still belongs to the finance company, not you or the buyer you sold it to. So the legal position is that the finance company is still the owner of the car and they can now chase the new registered keeper for the outstanding payments. You have no right to get the car back because you are not the legal owner. So you either give her the money back and then she returns the car and you become the registered keeper again, or you refuse to do so, stop the payments and then the finance company chases the new registered keeper, the new buyer in this case, for the outstanding payments. In turn she can sue you for unlawfully selling her a car on finance. I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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Customer: replied 1 year ago.
Thanks Mr Ben. I got the answer. Have a good evening. Bye
Expert:  Ben Jones replied 1 year ago.
You are welcome, all the best