Where do I stand?

[Ashman21]

I was just wondering if anyone can give me some advice. I purchased a car on finance but sold it through a garage with finance still owing. The garage sold the car on but has only settled up a percentage of what is owed to the finance company. Unfortunately when I passed the car over to the garage to sell I did not get around to signing the V5 so am not sure whether I am now lible for the remaining balance. Any suggestions?

[r11co]

Ashman21 said:

I was just wondering if anyone can give me some advice. I purchased a car on finance but sold it through a garage with finance still owing. The garage sold the car on but has only settled up a percentage of what is owed to the finance company. Unfortunately when I passed the car over to the garage to sell I did not get around to signing the V5 so am not sure whether I am now liable for the remaining balance. Any suggestions?

V5 is not evidence of ownership, only registered keeper (two distinct legal entities although they can be the same person/company). This comes down to what receipt you have for the sale and the terms and conditions of the sale and finance agreements, but at first glance I'd say you are liable as you should have settled the finance separately with the loan co. as you have a contract with them.

If you have something on paper saying the garage agreed to settle the finance for you then fair enough - enforce it!

Otherwise you might still have a case as the garage have effectively withheld a portion of the trade in value of the car (which again you should have on paper somewhere).

Edited by r11co on Friday 4th February 09:34

[mcflurry]

What does your receipt say?

[Ashman21]

Thank you.
Unfortunately, the garage owner is/was a friend and no receipt was given, trust was involved here, so really I guess I am liable.

[lost in espace]

If you have not signed over the V5 just object to any change in ownership when the DVLA write to you. This should get the balance paid if you "blackmail" the dealer for want of a better word.

[Ashman21]

Nice one! Thanks for that, anything is worth a try.

[thinfourth2]

At the bus stop?