User Tag List

Thanks Thanks:  0
Likes Likes:  0
Results 1 to 8 of 8

Thread: Car Finance advise

  1. #1
    Regular Member BigWilko's Avatar
    Join Date
    Jan 2010
    Location
    Barnsley
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats

    Vehicle : Signum

    Trim : Design

    Engine : 3.0 CDTI

    Year : 2005

    Default Car Finance advise

    My brother has £1700 finance outstanding on a Seat Leon. A few months ago the engine blew. He got some prices for repair/ replacement but it turns out it's not worth doing. What are his options as he's obviously not excited about paying off the rest of the finance over the next million years!

    What would be the repercussions of defaulting on the payments and having them reposes the (knackered) car? He'd surely be quids in if he did that?

  2. #2
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    The repossesion will be just as expensive, as it will add many costs, including recovery, finance cancellation, plus a nice big black mark on the finance record for non-payment

    The best solution is to advise the finance company that the car has been maintained but suffered a failed engine and is uneconomic to repair
    The finance and dealership can then normally work on a settlement, the balance can then be paid or transferred to a replacement car
    However, the dealership may agree to repair the car on the agreement it will buy the car on completion (subject to passing MoT)

    I had a similar issue on my 2003 Mondeo
    The engine suffered a failed valve three weeks before its first MoT in 2006
    However, after three months the fault could not be found, neither could a replacement engine, and Ford agreed to buy the car back subject to be buying a new car
    I managed to negotiate with the dealer to transfer that money to their VX dealership, one week later the swap had been approved
    Had it not been for the fact the car had still not been subject to MoT, then I would have had to have paid for a new engine, but I would still have dumped the car

  3. #3
    Regular Member RobW's Avatar
    Join Date
    Sep 2007
    Location
    Tain - Easter Ross
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    Not paying is a bad idea in a big way. AFAIK, they will repo the car then have it RAC checked and he would be liable for repair costs as well as the remaining balance! Debt collectors and bailiffs etc.

    Even doing a voulintary termination (can hand car back so long as half the borrowed amount is repaid) will induce an RAC check - car no starty, no deal without costs incurred!

    My advice (used to be a salesman!) would be to talk to the finance company, explain he's going to get another car and would like to continue to be a customer and could they maybe help out. Speak to a garage about a new car and transferring the outstanding finance onto the new car.

    Final (dodgy) option is to leave the car parked in a bad area and offer some pikey £50 to torch it - claim on the insurance in the hope the engine would be incinerated!!

  4. #4
    Regular Member Jezzy's Avatar
    Join Date
    May 2009
    Location
    S.E
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    Quote Originally Posted by RobW View Post
    Final (dodgy) option is to leave the car parked in a bad area and offer some pikey £50 to torch it - claim on the insurance in the hope the engine would be incinerated!!
    Won't work. When I was a claims manager my staff knew to flag up any claims where the car had been stolen from a pub or club car park, or where the owner couldn't pin point a short time period during which it was stolen or burnt - so if he said it was stolen sometime between 8pm on Friday and 11am on Sunday, we treated it as suspicious, i.e. he'd left it there for a long time in order to give his mate plenty of time to get away before the police were called. And the pub car park is a fave of dodgy theft claims - "i'll leave it outside the pub and you make off in it, ok?"

  5. #5
    Regular Member Tam80's Avatar
    Join Date
    Aug 2010
    Location
    Dundee-Motherwell
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    It Could Mysteriously Be Torched Outside His House Of Course At Somepoint During The Night

  6. #6
    VIP-Member
    Join Date
    Jun 2010
    Location
    `
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    40 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats

    Vehicle : `

    Trim : `

    Engine : `

    Year : `

    Mileage : `

    Default

    Quote Originally Posted by Tam80 View Post
    It Could Mysteriously Be Torched Outside His House Of Course At Somepoint During The Night
    Obviously between Monday to Thursday too.
    "We are not some sort of dictatorship!"


  7. #7
    Regular Member chewy71's Avatar
    Join Date
    Sep 2010
    Location
    Lincolnshire
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    if it's on HP and more than 50% through the payment terms, I think you can request the car is collected by them as clearance of the balance.
    As this was done all too often, HP is not used - but G4GAV has suffered injustice on a car with outstanding HP - so there's one option.

  8. #8
    Regular Member bigdave1701's Avatar
    Join Date
    Apr 2010
    Location
    York
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    I think the best option is just to be totally open with the finance company. In situations where theres a high value item (such as a car) involved, trying to hide anything can only lead to problems later on.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. finance
    By aledjones_lex in forum General Chat
    Replies: 25
    Last Post: 4th October 2010, 11:36
  2. finance
    By toughmat in forum General Chat
    Replies: 2
    Last Post: 30th May 2009, 13:59
  3. ppc on finance?
    By mat100edt in forum Petrol Engine related
    Replies: 10
    Last Post: 21st December 2008, 15:15
  4. Do I pay the finance off...?
    By RobDMX in forum General Chat
    Replies: 6
    Last Post: 22nd March 2008, 01:23
  5. PCP or Finance
    By markm in forum General Chat
    Replies: 7
    Last Post: 17th July 2007, 12:58

Visitors found this page by searching for:

Nobody landed on this page from a search engine, yet!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •