Gift with outstanding finance

slowmoe

Hi all, little question. My boyfriend wants to give me his car as a birthday gift. Its a sports car that i love and he is buying himself a new car that he wants. The car he is planning on giving me is quite valuable and he is still paying finance on it. I was wondering if he transfers it to my name then will i be liable for the finance or does he still pay it? I just wanted to check because i think he's getting ahead of himself being so keen to get the new one and just want to check before its officially bought. Thanks

Anan1

He'll have to pay off the finance, right now the car is not his to give.

sundula

Would be nice to be able to 'gift' away loans. Doesnt sound like a gift unless he is going to clear the finance.

L-M

LOL...

Is it finance against the car or a personal loan? If it's the latter you could be alright, if not, either way he still have to pay the loan. You would be at no loss.

Michael 09

As Limerick man said, it depends if it is a personal loan or car finance. Personal loan means he owns the car but has the liability to repay. Car finance means the bank own the car until repaid (when exactly is usually in the contract)

slowmoe

thanks for letting me know!! he wants to put it in my name for my birthday but i don't know what type of loan it is. i think its personal but unsure. he has said he will clear all finance but i don't think he will before my birthday. i'm happy just getting the keys to it!!! I don't need to officially own it but he really wants to 'properly' give it to me. I think he is mainly fuelled by wanting to get the other car but either way it works out well for me!!!

L-M

slowmoe wrote: »

thanks for letting me know!! he wants to put it in my name for my birthday but i don't know what type of loan it is. i think its personal but unsure. he has said he will clear all finance but i don't think he will before my birthday. i'm happy just getting the keys to it!!! I don't need to officially own it but he really wants to 'properly' give it to me. I think he is mainly fuelled by wanting to get the other car but either way it works out well for me!!!

Either way it's good for you, because if the car was repossessed for non payment of finance, you'd still be at no loss because you'd payed nothing for the car in the first place

Michael 09

what type of car is it???

slowmoe

its a convertible 3 series!!!

i just wanted to check it was all above board, my car is such a banger and on the way out, i was starting to look around at other options when he came up with this idea. thanks for all the advice guys!

Michael 09

what a nice boyfriend you have... enjoy the motor and happy bday!