Hi, does anybody know if its true that if you sell a car thats on finance more than 3 times it cant be repo'ed
Answers:
I would doubt that there is a limit otherwise you could simply sell it to your brother and back a few times for a tiny sum.
The loan agreement would show if there was any such limitation.
I don't think a car can be repossessed if payments are current
A car on finance belongs to the fincance company until the finance is paid off. So I doubt that your statement could be true.
If the car was sold with outstanding finance Title of the vehicle does not pass to the purchaser since the seller did not own the Title to pass it on. So, this is yet another urban myth.
You can't legally sell a car you don't own. You don't own a car unless you've paid off the leasing company or financial institution you borrowed the money from.
If you're considering getting involved in a scheme like this - don't worry about whether the car can be "repo'ed." Worry about going to jail for theft or fraud.
a finance company will always look to recover it's interests and they always have a right to the car as it was their money that paid for it.
You can't sell a car even once if it's on finance. It belongs to the financier until it's paid off. You can go through the motions but it doesn't mean anything legally except obtaining money by deception. aka Theft and Fraud. You retain legal possession and responsibility for the vehicle.
If you're the buyer, you're buying nothing. You might as well throw your money away.
depends on the finance arrangements. If you took a loan from the bank, then the car belongs to you from day 1, if you took a specific load from the dealer then you do not own the car until more than 50% of the payments have been made, then you can sell it, but you STILL owe the money, and they can take you to court to get it. If you haven't got the car they may be able to take other things you have to the value, or have money deducted from your pay packet, or benefit. You can't avoid paying.
It needs to pass through three private persons possession not family or friends and only then the finance company can't reclaim it, unless they can prove fraud. they will chase the debtor for the money.
This is an illegal act and should not be done.
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