A friend of mine bought a car from someone she knew unaware that the car was bought on HP. She paid cash to her friend because he needed the money and has continued to pay the finance. If he stops paying who is responsible for the HP???
2006-12-09 09:34:47 · 12 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
And can the bank take the car away from her?
2006-12-09 09:36:28 · update #1
The friend who took out the HP agreement is responsible for paying it because he signed it. But your friend could lose her car if he does not keep up the payments, even though it is not her HP agreement, because the car was not the first person's car to sell. It still belongs to the company until it is all paid for. Which is why HP is a bad way to buy things....I am afraid that your friend is in a very vulnerable position. She has paid out money and got nothing for it, unless the first friend keeps up the payments.
If I was her I would consider getting legal advice and asking the first friend to sign something saying that he accepts that he is responsible for payments on the car and that if the car is repossessed because of his non-payment, then he will pay back the money he got from your friend for it. It's a longshot but at least it may mean he does not think stopping the payments is an easy option. The risk at the moment is that if he is bad with money he may stop making the payments on the basis that he no longer has the car anyway.....
2006-12-09 19:01:46 · answer #1 · answered by Bridget F 3 · 0⤊ 0⤋
Hello,
The person that is legally responsible for the HP is the original signer of the HP agreement (the man that she bought the car from), irrispective of who now thinks they own the vehicle or who keeps & drives the vehicle.
**The HP agreement is with the signatory (the purchaser) & the car company, the car was bought from.
**She is on thin ice here in my opinion, because if the man friend fails to meet any of the outstanding payments due on the HP agreement the car still inst the full property of the man. Therefore the car ownership would be in dispute. As I said its thin ice.
**Thats the problem with HP agreements, the car isnt technically owned by the man until he has completed ALL the HP payments.
**as I said before if he fails to meet payments or stops making HP payments on the car, then the legal car ownership could be disputed by the HP company.
IR
2006-12-09 17:53:51 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The one who signed the HP agreement is the one responsible for the payments. It is also illegal to sell goods bought on HP until all the payments have been made. If the police stopped your friend and asked is she the owner of the car, how is she going to answer that.
2006-12-09 20:30:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The friend who used to own the car because the contract with the HP company is in his name, doesn't matter who owns it according to the log book, the HP company still owns it until he pays all of the loan off.
He is prob breaching the contract that he signed with the HP company because he has sold the car so they could take him to court for Breaching a contract.
2006-12-09 18:04:17 · answer #4 · answered by MK06 2 · 1⤊ 0⤋
well he is responsible, but if he doesn't pay the finance company they can have the car taken away. even if it is in your possession. her friend really cant sell a car that still has a balance remaining on it. because if he hasn't paid the loan off the car is not his yet.
2006-12-09 17:41:55 · answer #5 · answered by whynot 4 · 1⤊ 0⤋
He is as he was the one who took it out and signed all the agreements.
He'll also be in the s*it as the HP is secured on the car and he's not allowed to sell it without redeeming the policy.
No matter what it isn't you're mates fault as she wasn't to know.
2006-12-09 17:39:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if he stops paying he will have the finance company on his case to find out where the car is....he has two options
1 tell them it has just been stolen and your friend will be in real trouble
2 or tell them the truth in which case they woud have to locate the car and take it back.
Sorry either way it doesn't look too good. i hope he keeps up with the payments x
2006-12-09 17:38:07 · answer #7 · answered by Just Me.... 3 · 0⤊ 0⤋
the friend who took out the contract with the company... jsut because she has sold it doesnt change the contract with regards to the HP.
Infact selling the car may mean this friend is in breach of contract for selling it.
2006-12-09 17:37:16 · answer #8 · answered by Gary 3 · 0⤊ 0⤋
If everything was signed over to her, she is responsible unless there was an agreement and yes they can take her car.
2006-12-09 17:40:32 · answer #9 · answered by tralw2000 2 · 0⤊ 0⤋
hp can take car dose not matter if sold on.
2006-12-09 17:40:16 · answer #10 · answered by brioduinn 3 · 0⤊ 0⤋