Toyota Finance - Default/Loss of rebate

[Mike R-F]

Hi all.

Any advice on the following problem would be much appreciated.

Almost two years ago we bought a 2.5 year old Toyota Celica form a Toyota main dealer and used Toyota Finance for the bulk of the purchase price. The loan ran perfectly well 'till summer of this year when we were late with one payment & then, in the following month were late again. Toyota served a default notice on us before we had a chance to catch up with the payments & I am now in a constant battle with them. The gist of my problem is that they now claim that I have lost my right to an early settlement rebate. I currently want to sell the car and am, naturally, keen to secure any possible rebate to maximise the return on the sale (bearing in mind that we paid £2000.00 cash when we bought it). Toyota are now threatning to pass the debt to a collection agency which, according to them, will cost me a further £200.00 in fees with the outstanding balance having to be paid within 3 months. We are currently due 2 months payments (which I have the money for) but am loath to pay considering their attitude particularly in light of the loss of the abovementioned rebate. They are also the most aggessive credit company it has been my misfortune to deal with and are unwilling to indulge in any dialogue to resolve the problem. There attitude is, you've had a default issued, you've lost your rebate, pay up or it goes to a collection agency.

My reason for NOT paying at the moment is that I wonder if the collection agency would be more ammeanable to an early settlement rebate than Toyota finance appear to be. I've read that collection agencies can offer up to 20% rebates to get final payments on outstanding loans.

Bearing in mind that I live in Scotland and that a court order would be required to repossess the car as I've paid more than one third of the payments, can anyone suggest my best course of action? Should I just pay the outstanding payments & fight for an early settlement rebate (which appears very unlikely given Toyotas current attitude). Should I pay the outstanding payments & accept that I've lost any chance of a rebate or should I wait for the matter to be passed to a collection agency & negotiate with them.

[Rob S]

I believe the best thing you can do in circumstances like this is to keep your payments up to date as much as you possibly can. If you withdraw your payments it always puts you in a worse light, especially if you end up in court. By making your payments and then pursuing the matter with them through whatever means are possible, you come across as being reasonable and having taking all steps possible to resolve the matter.