WA Stuck Paying Car Finance for Ex - What to Do?

Discussion in 'Debt and Bankruptcy Law Forum' started by BFB_dynamite, 1 April 2018.

  1. BFB_dynamite

    BFB_dynamite New Member

    1 April 2018
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    Hi everyone. I'll keep this as clear as possible I promise.

    My (now ex) long-term partner (de facto) had bad credit but needed a vehicle to continue work. We purchased a ute from a dealership, put the car under his name and both signed for the finance. We have since split up, but at the time, he agreed to keep paying the car finance (which he was anyway from the start) and it would all continue on as normal. Of course that never ends in tears does it?

    After a few months, he stopped paying the money into my account from which the direct debits are taken by the financiers. After speaking with them I have continued to pay the finance to avoid any defaults and they are aware of the situation, including VRO's I have out against him which make dealign with this even more difficult.

    The financiers of said car even admitted that if I defaulted deliberately, they could write that off on paper without penalising me and repossess the vehicle. The only problem is that the vehicle has to be at MY address, which obviously it isn't (and not 100% sure where he is living now either)

    I have cancelled the insurance on the car as if it's covered in an accident, the insurers said he (the Ex) would get the cheque anyway, not me, as the vehicle is in his name. Not sure about that one but I figure if that's the case, if he manages to write-off the car, I'm paying off nothing but at least he won't have the car anymore!

    Ideally, I have asked him repeatedly to bring it back so I can sell it to minimise the finance owed and perhaps roll the remainder into my mortgage (not our mortgage, mine) but again, that's not happening.

    I'm now concerned if he decided to sell the car and not inform the buyer of encumbrance (and they didn't bother to check). Am I just then paying off then some random strangers car while the he (Ex) runs off with the money leaving myself and 'random stranger car person' in the sh**?

    Any help would be much appreciated.

    Thank you
  2. Clancy

    Clancy Well-Known Member

    6 April 2016
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    Well m opinion is to initiate a property settlement case. If you cannot afford a lawyer, you are within your rights to go to court yourself. You can download a do it yourself property settlement kit from the court website. In the simplest terms possible.... He will have to pay you for half the value of the vehicle, but also you will have to pay half the value of the debt.
  3. GC.

    GC. Well-Known Member

    26 October 2015
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    I would be very careful with this... As I understand it, the insurance will be paid to the finance company first and then any leftover money (once the loan has been paid out) to the owner. If you have no insurance and the car gets written off, you will end up with no car to recover (with a property settlement) but you will still be liable for the loan. I would keep enough insurance on the car to pay out the loan.

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