Vehicle owners liability

[corkman]

Dear All,

I recently “sold” my car to a good friend. A fellow westerner, I trust him implicitly. The terms of sale are that he’ll continue to pay the finance outstanding on the car (which is roughly equal to the lump sum amount that I could sell it for) and upon clearing the finance I’ll sign the car over to him (this avoids involving the finance company etc.). So we are both happy with the arrangement.

However, I recently heard that since I am still the legal owner of the car, then if anything happened I could be held legally responsible, or at least legally liable. We have exchanged signed and witnessed letters that have the details of our agreement and recently he has renewed the insurance (I think in his name, but I’ll check). I don’t for one second think my friend would ever screw me over, but being devils advocate if there were a road accident in which he was killed while driving and perhaps injured or killed someone else in the process, and if the accident was ruled as his fault, then is this something I should be worried about?

Many thanks.

[stingray]

Yes, you are responsible until the car is fully paid and the blue book is changed over to some other owner.

Basically the finance contract have to be in his name. You can't just "sell" the finance agreement, which was made in your name, to some other people. If he fails to do the payments, the finance company will collect it from you. They don't have any agreement with your friend.

The same is, if he has a accident.

[IMHO]

You will also be named/liable for any traffic infringements sent by mail.

You might want to check with a lawyer re: the legality of the agreement you have made with him too - it's possible it's in conflict with the original hire purchase contract / the law, and might not be worth the paper it's written on.

Edited May 29, 2015 by IMHO

[ClareQuilty]

Does this mean that one's finance company is liable for one's traffic mishaps during the payment period? Given that they are the owner of the car during this period.

[casualbiker]

They get the bills but add them to your finance if you don't opt to pay them!

[casualbiker]

Op.. Just transfer the finance to your friend ..easier all round.