Creation Car Finance Query

Stu_1978 · 26 January 2015 at 6:15PM

Hi

I'm currently paying £227 a month on my credit agreement with Creation. I'm in quite alot of other debt (see my other post) and I'm wondering what happens if I get to the point where I can't afford to pay for the car as I still have 5 yrs left on the agreement. I've been told the car is mine, so they can't touch it, is that right? I know I'm going to have to make sacrifices to get out of my debt and the car might have to be one of them. I'm currently away from home so I haven't got access to my paperwork.

All comments greatly appreciated.

Stu

Apples2 · 26 January 2015 at 8:34PM

What type of agreement is it (it will say on the top of the paperwork)?

If it is a HP agreement, the car is not yours, it belongs to the finance company. You can probably hand it back once you have repaid 50% but you are a Country mile away from that point yet.

If it is a Personal Loan agreement, the car is yours to sell. You could sell it and put all the money into the loan but it is very unlikely your car will fetch anywhere near what you owe (but you would have made a good dent in the debt).

arcon5 · 26 January 2015 at 8:46PM

If it's car finance then highly unlikely you are the legal owner, registered keep maybe, but not the owner

forgotmyname · 26 January 2015 at 9:28PM

As above depends on the agreement.

If its HP or secured on the car, They reposess is and sell at auction for pennies then send you a bill for the balance.

Trashing your credit file for at least 6 years.

Stu_1978 · 27 January 2015 at 4:43PM

As I said, unfortunately I'm away from home so don't have access to my paperwork. I'm pretty sure that it's finance, as I have a certificate of ownership from the DVLA and my on-line Creation account refers to it as a loan. If I sold it I probably wouldn't get more than £4000-4500 for it, which would only cover half of the settlement figure needed, which is roughly £9300

It's looking like I'll be setting up an IVA, so I imagine car payments get rolled into that.

Stu

gazfocus · 27 January 2015 at 4:48PM

I think you're confusing the V5C (The red document) with a certificate of ownership. DVLA have nothing to do with the ownership of the vehicle.

The V5C (Logbook) actually states on the front of it "This Document Is Not Proof of Ownership".

All the V5C does is shows who has the responsibility for paying road tax.

Did the dealer you bought the car off arrange the finance or did you get a loan and then go to a dealer and pay for a car?

forgotmyname · 27 January 2015 at 4:59PM

V5C = The registered keeper. read the document it clearly says the keeper may not be the owner.

Foxy-Stoat_3 · 27 January 2015 at 6:05PM

It will be included in the IVA, if its HP then the company may well repossess and the balance added to the IVA after they sell the car.

If its a personal loan and you are still going to go down the IVA route then they shouldn't force you to sell it as its not worth a lot...by a lot I mean its not 8-10K, that was the figures my IP was quoting me when I inquired about selling the only car I had.

Good lucks

Stu_1978 · 29 January 2015 at 5:37PM

Sorry I must have got confused about the ownership thing. To answer the other question, the people in the showroom arranged the finance then creation sent me all the paperwork.

Stu

Foxy-Stoat_3 · 29 January 2015 at 5:40PM

What does it say on the paperwork? HP or personal loan?

gazfocus · 29 January 2015 at 10:03PM

You will need to check with the paperwork but I would be extremely surprised if it's a personal loan arranged by the car dealership. It definitely sounds like Hire Purchase.

Creation Car Finance Query

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