Nobody ever told it it was fraudulent

[sirbob10]

Hi

 

I'm desperate for some advice.

 

Since 2010 my dad has took the finance out for me due to bad credit history. We've had 3 VW, 2 Toyotas and now a Honda.

 

Toyota have financed the last 2 cars and the Honda we have now. We've always been upfront with the dealer. the 2 Toyotas came from the same dealer and we told them that I couldn't get finance so they asked if someone else could and my dad agreed and when we went for the Honda I to,d them as well and they also suggested I get someone so I did and my dad agreed again.

 

Today I've found out it's illegal. I was talking to Toyota Finance due to a issue with the Honda and mentioned my dad had the finance and I drove the car and it was registered in my hisbands name and kept at our address. She said Toyota don't allow this..I told her the 2 dealers have never said a thing about it not being allowed.

 

I've told my dad and he's shocked and said if it was fraud he'd never have agreed to finance the cars.

 

What is likely to happen. We are looking to sell the car anyway but I'm worried they think my dad has committed fraud.

 

It was the dealer who suggested it. Why would they do this if it was fraud.

[Conniff]

Unless it is in the finance agreement, then they are talking bull. You need, for piece of mind, to ask them where this is laid down and to give you a copy.

 

What type of finance is it ? You can't sell a car on hire purchase as it belongs to the finance company.

[sirbob10]

Hi

 

Thanks for the reply. All they said was the car needs to be registered and insured at the persons address who has the finance. They have opened an investigation into the dealer as they shouldn't have done the sale knowing my father was getting the finance for me.

 

Toyota finance say I can sell the car no problem as long as I settle the finance.

[Conniff]

The definition of fraud is: wrongful or criminal deception intended to result in financial or personal gain.

 

One person paying for an item and another using it isn't criminal deception and no one is making a financial or personal gain from it. No different than your dad giving you the money in cash and you going out to buy and then paying him back monthly.

 

If they want it at the same address, then use your dads address for you correspondence with the insurance and registration.

[SeanG79]

Fronting/Accommodation is not allowed - this is a situation where somebody obtains finance for someone else where that person would normally be declined the finance, thus obtaining finance by deception.

 

Many car finance providers will terminate the agreement and repossess the vehicle when they learn of the accommodation/fronting.

 

The way around this is obtaining finance with a guarantor or the guarantor obtaining a personal loan and using that to purchase the vehicle.

[Conniff]

They were informed up front so not deception. It would only be deception if lies were told to get the finance.

 

It is also of no consequence unless it is in the finance agreement.

[sirbob10]

We did inform the dealer upfront as it was them who asked if we knew someone who could take the finance out for us.

 

Having read the agreement it does state that the person who name the finance is in must also be the registered keeper and must be kept at their address.

 

Luckily we sold the car yesterday to a dealer who will settle the finance.

[Conniff]

Good on you Bob. There will be a discount for early settlement, make sure it's you who gets that settlement rebate.