Car Finance - Unable to pay!

[tan4874]

My sister purchased a car on finance 5 months ago, this was a bad move and unfortunately they are now having real difficulty in keeping to the agreement. They have already missed one payment and there is no way with a new baby due next month they are going to be able to continue with the agreement. They owe £10000.00 and the garage they purchased the car from are willing to buy the car back for £8000.00 (the garage would pay this direct to the finance company) the finance company have said they will not agree to this and the only options my sister has is to have the car repossessed and they will sell at auction or they will buy back for £5000.00 leaving them £5000.00 to pay. Surely it would be better for the company to receive £8000.00 leaving my sister owing £2000.00, than to sell at auction for a small amount or buy back for £5000.00. Can they do this, is it legal?

[skintandbroke]

Hi
I don't know the answer to your question, but in my experience if they sell the car on, i.e. at auction, this amount is taken from the outstanding debt. So depending on what car it is and whether it is likely that they will get more than 5k for it should determine how much your sister owes. (just make sure she gets all this in paperwork)

How much was the car finance for and how much has she paid off it?

I wish her the best of luck, i'm having problems too and know how they can make you feel.

Can the finance company say who can pay off the amount?

[kaysamoly]

I had a car a couple of years ago owed 10,000 on it had it repossessed they sold it at auction for 1,500 and I had to pay the rest I am now wondering if this was legal and if I can claim any of the money back so to hi-jack your thread but can't seem to find any of the info on here.

[rosiecotton]

Is it on HP?

[tan4874]

Hi, Yes car is on HP. Well I have looked into situation a bit more and yes it is legal. As the car is not hers to sell the only way they could sell back to the garage is if the finance co. agree. Only options they have are to VT agreement or wait for it to be repossessed.

[blackporsche]

hope this helps .............

a friend bought a vespa that had money owed on it .
basically , the asking price was the ammount owed .

the seller didnt sell the bike until the finance was paid , as that is illegal . he "borrowed" the cash from my friend , paid off the finance , then "gave" the vespa to my friend !!!

[blackporsche]

just clarrified with my friend ................

his credit card was used to settle the finance , then the vespa was given to him as a gift .

he spoke to the finance company and was told he couldnt settle the finance for somebody else , but the contracted person could used anybodies credit card to make the final payment aslong as they had permission . so the seller phoned the finance company to make final payment , and when it came to payment details handed the phone to my friend who then gave his card details .

hope this helps find a solution with the garage

[crystal palace]

hello
I am in the same situation and wondered if you got any advise on this ? I had a credit agreement on a car and it got sold at auction for £8000 leaving me to pay off £7000 the company I work for offered to give me £10000 for it but the finance company refused.I am still paying this off,seems really unfair paying for something which you no longer have,I asked the finance company to rearrange my loan to a more affordable monthly payment they refused .

[saxomad]

ask them for a settlement figure for the finance.

if it is £10k, if the dealer wants to pay £8k for it , then give them a extra £2k and then you can clear it off, will be the easiest way of doing it and you will not have a default registerd against u as well

[crystal palace]

thank you saxomad,but the car's been sold at auction and i still owe the finance company £7000,so i'm paying for a car I no longer own,my work where going to give me ten grand to save it going to market,and at least save me £2000 but to no avail,think i will just have to pay up and shut up

[tan4874]

Hi, When I looked into this for my sister I was advised there was nothing she could do and the car would have to be repossesed. Car has now been repossesed and they are waiting to find out how much they will have to pay. You could try contacting national debtline on 08088084000 they have a website too. I found them really helpful. Hope this helps x

[crystal palace]

Thank you very much tan4874 I will give them a call x

[honeybells]

hello
my situation is the same, i stupidly got a car last year in my name for the boyfriend who paid the monthly instalments. We have recently split and he has left me with the debt.
I owe £12,200 and the car is now valued at £9500, leaving me with nearly £3000 negative equity.
A garage have offered to pay the full amount to blackhorse and set me up with a new agreement, still with blackhorse so they also get to keep my business too, and then add the extra they paid onto the new agreement.
I was advised on at least several occassions that this is possible.
The proposal was sent by the garage but declined? I have never missed or been late for payment and blackhorse have said the only way to get rid of my car is for them to auction it and bill me if the remaining sum? Surely this is the same thing but their way of making more money!!
Does anybody have any advice??