Bad Break Up leaves my friend careless and car-less

Com1186

Hi, My friend just broke up with his girlfriend of three years, long story short he bought her a car and is still paying the loan for it. he registered the car in her name (against my advice, but he wanted to show her how much he loved her!). last month she left him for someone else and now my friend wants his car back. her "new" friend, a solicitor rang him and told him because he registered the car in her name, he hasent a monkeys chance of getting the car back and not a court in the land would give him the time of day.
is this true? he has come to me because i was the one who warned him from the get go, he is not a bad fella just jumps in with both feet when it comes to women.. any advice i can pass on to him would be greatly appreciated

charlemont

Well he should be charged himself with an offence of being stupid in a relationship...In fairness I doubt anything can be done, If you post this in After Hours we can suggest cough cough some help !!

castie

Not sure if its an actual car load or not here but what would happen if he didnt repay the loan. Can the bank then seize the car?

Com1186

he took out a loan for cash so he could barter with car companies, got the loan back in the good old days when a bank didnt ask for anything just gave it out. so i dont think he can default on the payments....

howwedoin

Sounds like a case that would be right up Judge Judy's street!

MagicSean

He needs a solicitor. He was very stupid but the registered owner is not automatically deemed to be the owner of the property.

Peregrinus

He gave it to her, in order to show her how much he loved her, so it's hers. It's very difficult to interpret his action in putting the car in her name in any other way.

If he stops paying, the bank will likely seize the car and sell it, which may give him some satisfaction. However it's his loan, not hers, and he remains liable for it. By the time interest, etc has mounted up he could end up owing the bank more money, even after the bank has got a few quid from selling the car.

He could approach his ex, point out to her that he sees no reason why he should continue servicing the loan on her car and invite her either to take over the loan if she wants to keep the car, or hand back the car if she doesn't.

MagicSean

The bank have no claim on the car if it was purchased for cash. The loan is not related to the car at all. Your only option is to get possession of the vehicle but if you gifted it to her then that would be very hard.

Peregrinus

Oh, OK. He borrowed money to buy a gift for his girlfriend, he gave her the gift, now she's buggered off, and he's still paying back the loan he took out.

Yes, he's in a very sticky position. In the absence of some facts which have not been disclosed, I don't see him refuting the obvious inference that he made a gift of this car to his girlfriend. I can't see any explanation for putting the car in her name other than that he intended it to be hers.

He might suggest to his ex that if she has any decency she will take over the car loan. Of course, if he puts the request in those exact terms she will certainly refuse, so he has to think carefully about whether there is any way he can put this matter to her in terms which make it likely that she will agree. As he knows her better than we do, he has to be the judge of this.

CIARAN_BOYLE

They weren't engaged were they? If so he has the right to have the gift of a car returned . If not he doesn't have any right to the gift beyond common decency.

Delancey

Your friend has had it I'm afraid - he gave her a gift , simples really.

godtabh

A big gift to give. Is she liable for tax?

Delancey

godtabh wrote: »

A big gift to give. Is she liable for tax?

Not unless it was a Ferrari or a Lamborghini or something of that nature.

godtabh

you would still need to pay tax

GerardKeating

Com1186 wrote: »

Hi, My friend just broke up with his girlfriend of three years, long story short he bought her a car and is still paying the loan for it. he registered the car in her name (against my advice, but he wanted to show her how much he loved her!). last month she left him for someone else and now my friend wants his car back. her "new" friend, a solicitor rang him and told him because he registered the car in her name, he hasent a monkeys chance of getting the car back and not a court in the land would give him the time of day.
is this true? he has come to me because i was the one who warned him from the get go, he is not a bad fella just jumps in with both feet when it comes to women.. any advice i can pass on to him would be greatly appreciated

Was the car purchased on HP, or "normal" loan.

Also, "Registered owner" is not the same a "Legal owner"...

Who has the "Vehicle Registration Certificate" ?

Ms Minnie Mouse

If on a Lease or HP the legal owner is neither your friend or his girlfriend. It's the financial institution with whom the finance agreement is signed. In the case of a HP, up until a certain level of the finance has been repaid - depending on the form of the agreement. This will be defined on the HP documents signed with the financial institution.

Tax will have been paid upon purchase. She is not (so far as I am aware - I'm not a tax expert but I am a finance expert) liable for any further tax if the car was purchased in cash and given to her for her use. Tax would only be applicable if the was a further financial transaction - and then only if the vendor in that transaction was VAT registered or if the vehicle was being imported - in which case VRT would apply.

She is, however, as the registered owner, responsible for ensuring that the motor tax , NCT and insurance are up to date.

Delancey

godtabh wrote: »

you would still need to pay tax

What Tax are you referring to ? Ordinary Motor Tax or some kind of Gift / Capital Acquisitions Tax ?

castie

Ms Minnie Mouse wrote: »

If on a Lease or HP the legal owner is neither your friend or his girlfriend. It's the financial institution with whom the finance agreement is signed. In the case of a HP, up until a certain level of the finance has been repaid - depending on the form of the agreement. This will be defined on the HP documents signed with the financial institution.

Read up he borrowed money and bought the car for cash.

Com1186

Thank you everyone for your replies, i think that he is buggered but at least he has seen this discussion so he see that he is in a bad position.

just whilst we are on topic,

if a husband and wife break up and the car is in one of theirs name, (reg book), does the other have a right to the car.

i only ask as doing first year law (thats why num nuts came to me first) and cant see any case law in this area, which i think will become more prevelant as divorce / seperation rates in this country are rising!

cheers

Milk & Honey

Com1186 wrote: »

Thank you everyone for your replies, i think that he is buggered but at least he has seen this discussion so he see that he is in a bad position.

just whilst we are on topic,

if a husband and wife break up and the car is in one of theirs name, (reg book), does the other have a right to the car.

i only ask as doing first year law (thats why num nuts came to me first) and cant see any case law in this area, which i think will become more prevelant as divorce / seperation rates in this country are rising!

cheers

In a separation or divorce all assets owned by either party are examined and all or any assets can be moved around to achieve a result that is just.

Tayla

Peregrinus wrote: »

He could approach his ex, point out to her that he sees no reason why he should continue servicing the loan on her car and invite her either to take over the loan if she wants to keep the car, or hand back the car if she doesn't.

This is probably his only option, hopefully she'll see sense and give it back. Does the girlfriend know that it was a cash loan? Maybe if she doesn't then your friend could say that it was a car finance loan and the bank can seize it?

CIARAN_BOYLE wrote: »

They weren't engaged were they? If so he has the right to have the gift of a car returned .

Is there some law that says that? I've never heard that before.

28064212

Tayla wrote: »

Is there some law that says that? I've never heard that before.

http://www.citizensinformation.ie/en/birth_family_relationships/getting_married/legal_implications_of_a_broken_engagement.html

Tayla

28064212 wrote: »

http://www.citizensinformation.ie/en/birth_family_relationships/getting_married/legal_implications_of_a_broken_engagement.html

Interesting, I thought it was only engagement rings that would have to be returned!