corkers

Hi, iv just been told by work that they might be throwing in the towel
So I may be unemployed in next cpl weeks,
Thing is if I can't get a job straight away or have to do a month in hand

What are my options on my car finance I currently own?
What's best to do? Has anyone gone down this route?
Iv only had the car for 6months and borrowed £7k
Can they have the car back and take that off the loan and then sort out
Sensible repayments?
Or would they freeze the payments for cpl months for me first?

Any suggestions or experience others had would be great to know,
Cheers, nick

Carlos-Titx

Ring them. Don't leave it till the last minute and ask for some time but yes, they can take the car as they own it until a certain % of it is paid for.
It will tell you in your credit agreement.

Hope you get sorted pal.

corkers

I will be able pay the next payment in a week so I have a month so will phone them when I def know what's happening with work, thanks

STeve

iTrader: (11)

you have to keep them informed on whats going on and even ask their advice, or they will default the car and repo it and maybe lizzard lick towing will be there

natehall

iTrader: (2)

first thing I would do if I was you..

Sell the car now and pay the finance off (as long as there is enough equity in the car)

I had exactly the same problem - kept hold of the car and struggled to make the payments etc.

It is not worth it for a lump of metal - with the equity if you need a car - buy a cheap runaround outright! if not you can use the funds to live on whilst you find a new job.

My experience with car finance companies, is they will try to help you to a certain degree, but are very inflexible with how they help..

Mr RS500

iTrader: (6)

How can he sell the car when it has finance owed on it ???

do you not know that doing this is

1, almost impossible as people will HPI the car , see it has finance owed and walk away
2,,,,,,,,,,,, against the law ,,,,,,,,,,,,,,

If i was you i would tell the finace company and they will tell you your options

DO NOT , just default as they will reposess the car , sell it cheap and you will be stuck with the rest to pay back

LHD220Turbo

iTrader: (4)

paul;

its not against the law mate, its quites common. Seen it many a times. Not quite sure where you've got that from?

rsmark86

iTrader: (3)

Debt management plan, (it's not like a iva) read up on it, they can do a car hand back where they take back the car and you only have to pay the left over if any?

And there's none of this shit where they are in control of your finances, your in control unlike every other option out there

But they can freeze the interest for an agreed time for you to find a job, but will charge admin fees ect

DanW@FastFord

iTrader: (1)

You need the finance companies consent as it's their car not yours - Selling it without their consent is illegal, selling it with their consent is not.

By far the best thing to do it to ring the finance company up NOW, not when you become unstick, and discuss the potential options. They're far more likely to be reasonable and flexible if you speak to them before you're in a position where you're unable to pay.

Rod-Tarry

Thats correct but will be hard because of HPI checks. Howerver 'We buy anycar.com' will settle Finance .

Ima Racing

iTrader: (1)

...of course its ok to sell the car! Even if the buyer hpi's it they can pay the finance company direct.

BigChuck

the problem you'll have is that the finance owed will probably be worth more than the car, due to the time scale.

I'd suggest talking to the finance company, don't bury your head in the sand and hope things work out, you'll only end up getting deeper into debt.

find out whats owed, and what it will cost to end the agreement early. then look at the market value of the car and see where you stand.

focusv8

The seller rings the finance co to tell them his /her intention and asks for a end of agreement figure.

When the car is at the point of sale the seller rings the finance co. and confirms who they are, passes the phone to the buyer who identifies themselves, makes a card payment over the phone to the Finance co and at the same time a cash payment for the difference to the seller.

It's done regularly with private sales.

Brendan

iTrader: (1)

If you decide to sell the car, which is legal you go to the bank with the buyer and usingthe information the supplied on the phone in front of the buyer you pay the correct monies onto the account for the finance company (WITH THE CORRECT REFERENCE). you then take the rest if there is equity in the car and you ask the bank to photocopy the deposit slip (one each). JOB done!

what ever happens talk to the finance company ASAP to you both have as much timeto discus options, and if you are making this months payment you will be fine for a month anyway also tell them you will be making this months payment too!

vaughant

iTrader: (1)

Talk to the finance company anyway but you can certainly sell a car on finance,just need an agreement number to settle it all.
But as stated above it will be a big hit plus no doubt the finance company have frontloaded any charges so I think you'll fall well short of what's owed.
Speak to them first and see what can be done,they won't help that much but if you can prove you can meet some sort of payment plan I'm sure they'll look after you a bit.

corkers

Thank you everyone for your input ill have a word with them on Monday, its not really losing the car I'm bothered about its just being hounded for money if the worse happens

Mr RS500

iTrader: (6)

Im a car dealer mate , i know how it works

and it is Illegal to sell a car thats on finance as you dont own the car , the finance company do

I know the laws with buying and selling cars that are on finance as i buy quite a few

Unless as Dan says , you get concent from the finance company to sell , and this can only be done as you stated above

Its shocking what some people say on here telling people complete and utter bollocks

LHD220Turbo

iTrader: (4)

if the finance is settled, it cannot be illegal!

natehall

iTrader: (2)

I have sold numerous cars on finance, telling the buyer the situation and that I will pay it off with them present - never had an issue as the customer knows the finance is paid - once finance is cleared it is there car.

The key thing is - the finance is paid off in full before the buyer takes possession - I fail to see how that is in any way illegal!

I can see how taking the money and not paying the finance is illegal - however if what you say is totally illegal - how come houses with mortgages in place can be sold!

The mortgage company owns the house until you pay the mortgage off - so if you buy a house with a mortgage is that illegal?

Mr RS500

iTrader: (6)

FFS , i said in my first reply that it is illegal to sell a car that has finance owed on it

Quite obvious if the finance is settled then there is no finance so not illegal

My point was that the OP said he was thinking about selling the car , he never said he was going to clear the finance first then sell , so i pointed out that it is illegal to sell a car ,,WITH FINANCE OWING ,, and it is illegal to sell a car that has finance owed

yes we all know if the buyer rings the finance company before they buy and pays it then it can be sold ,,, but again there is no finace as the buyer has paid it

I was simply letting the OP know he CANT sell it with finance owed because 1, anyone who hpiS it wont buy it as most normal people who arnt in the motor trade wont know they can simply pay it off
2, It illegal to sell it ,,

Mr RS500

iTrader: (6)

Where did i say you couldnt do this ,,but where did the OP say he would do this

He simply said about selling it , and i pointed out its illegal to sell it ( as he didnt memntion paying it off or getting the buyer to pay it off )

so its illegal to sell it ,,

As said i know how it works mate , but did the OP know ??????

that was why i mentioned it , as its quite common for people to try and sell a car on finance without paying it of , and the poor bugger who buys it ends up with it repoed because the seller " forgott " to pay it of as his other bills needed paying

Carlos-Titx

I thought finance could be signed over?

LHD220Turbo

iTrader: (4)

calm down mate, no need for that

fuzzy

first port of call should be a call to the finance company to explain before any payments are missed. in this day and age most/many are quite sympathetic and can be helpful although if you dont contact them and payments are missed then they might not be so helpful.

Mr RS500

iTrader: (6)

Its quite annoying when people say im wrong when they dont even read my replies and quite clearly dont realy know the law that they are telling somone about

The facts are and always have been and always will be that it IS ILLEGAL to sell a car ON finance

If you do xyz before hand then that changes things , but my first reply to the op was that it is illegal to sell a car on finance , and it is

Nick 172 Sport

no it dosnt work like that there a quite a lot off ocassions when people buy these cars and dont hpi them finance ring the new owner telling them there repossesing it most cases they dont because the debt is not with the new owner they then chase the bloke what sold the car in the first place

Mr RS500

iTrader: (6)

Lol,, he we go , another one

The finance company will repo the car , sell it at auction then chase the origonal finacer for the differance between what they sold if for and what was owed

Yes of course they will try first to get the man who financed the car to settle the outstanding amount , that i will agree , but IF it isnt cleared within a set time that the finace company agree then they WILL repo the car

The only other time they dont repo the car is if more than a certain percentage is payed of ( i think is 70 % ) then they will chase the for there money from the person who took out the finance and if they dont get it they will ( in most cases ) right the dept off

Ill wait for another to say im wrong now ,,lol

I have purchaes many many cars in my time with finance owed and done quite a bit of deals with finance companies , even to the point where you can acctually pay less than what is owed to buy the car as the finance company will oftern take a hit and sell rather than risk a default from the owner