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Q: I bought a car under finance with registration and insurance.
Gave it too my daughter under the arrangement that she will pay fortnightly installment,she changed the registration into her name and no longer pay instalments
Because the finance company has got the loan under make/model/registration of that car,have I got rights too repossess the vehicle?
A: Hi Shawn,
I'm assuming that the loan is in your name solely, which of course means you are still fully liable to the lender for all repayments.
If this was a fully Unsecured loan, then the lender would have no interest or charge over the vehicle, and therefore no hold over what happened to its ownership. You no doubt had to sign the registration transfer papers
Whether you have recourse to any action against your daughter will depend on how explicit or formal your arrangement was with her. If you are serious about taking some type of action, I would suggest that you consult a solicitor or legal aid before you do anything.
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Q: I'm getting a loan for an investment property which I intend to pay back quickly, can I redraw against that to buy a car in a few years?
A: Hello Jessica,
Provided your investment loan has a redraw facility, and the loan is not in a fixed rate period, the short literal answer is yes.
HOWEVER, this could have tax implications - unless the vehicle you buy will be used for business etc., you are unlikely to be able to claim deductions on that part of the loan redrawn. Please talk to your accountant on this before doing the redraw.
