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While I was away on holiday recently, my son (in his early 20's), naively signed up at a Ford Car Main Dealership for Car HP Finance (Barclays Fixed-Sum Loan Agreement) on behalf of his friend/mate who is buying a used car (£13,000) = £16596 total payable over 48 months. His friend paid the £500 deposit and later completed the Contracts direct debit details using his own bank account details and is going to pay the monthly £333 approx payments himself.
Very stupid I know for my son to be talked into getting involved in this but he did not fully understand the implications or read the small print. I can't see any way of getting him out of this now?...................his friend - who could not do this deal in his own name due to some (he says) minor problem in his financial history - has offered verbal guarantees of payment from his girlfriend /mother, etc should he ever default on payments, which he of course thinks unlikely to happen.
[FONT=Arial][SIZE=2]Whats the best way of making these other persons his loan guarantors if they are willing to sign some legally binding document.........
My sons friend is on the car registration document as the Registered Keeper (I would prefer it kept this way in case of any speeding fines/parking tickets) but my next question is................. does the Ford Sales invoice for the car, which is made out to my sons name/address, mean that under the law my son is the legal owner (which I would prefer) of the car in the event of any future dispute?
As a further reassurance, my sons friend is happy for us to open up a savings account in my sons name (son would have access only) where his friend then promises to pay in as much spare cash as possible each month to build up over the loan term and go towards future payments (or pay of the loan off early......although I think the high fees for early settlement would mean this was actually used as a buffer cash store for future monthly payments).
I would be very grateful for any suggestions on the above or any ideas to minimise the financial implications/risk of this situation for my son over the next 4 years of the loan term.
Very stupid I know for my son to be talked into getting involved in this but he did not fully understand the implications or read the small print. I can't see any way of getting him out of this now?...................his friend - who could not do this deal in his own name due to some (he says) minor problem in his financial history - has offered verbal guarantees of payment from his girlfriend /mother, etc should he ever default on payments, which he of course thinks unlikely to happen.
[FONT=Arial][SIZE=2]Whats the best way of making these other persons his loan guarantors if they are willing to sign some legally binding document.........
My sons friend is on the car registration document as the Registered Keeper (I would prefer it kept this way in case of any speeding fines/parking tickets) but my next question is................. does the Ford Sales invoice for the car, which is made out to my sons name/address, mean that under the law my son is the legal owner (which I would prefer) of the car in the event of any future dispute?
As a further reassurance, my sons friend is happy for us to open up a savings account in my sons name (son would have access only) where his friend then promises to pay in as much spare cash as possible each month to build up over the loan term and go towards future payments (or pay of the loan off early......although I think the high fees for early settlement would mean this was actually used as a buffer cash store for future monthly payments).
I would be very grateful for any suggestions on the above or any ideas to minimise the financial implications/risk of this situation for my son over the next 4 years of the loan term.
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