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Help car being repossessed

Hi

Am looking for some help. We got a car 4 years ago on a 5 year deal. Recently we have fallen behind in payments and we only had 8 months to go. They are now saying that they are going to reposess the car and will just come to the house. I just wondered as had paid so much of the car if they can do this? Think the balance left to pay is £2000. The car was £9000 and we have paid 4 years and 4 months at £203.00.

We are just meeting ends meet at the moment and cannot get £2000 to pay it off.

Does anyone have any advice?

Thanks
«1

Comments

  • some hpi agreements allow the car to be given back after paying more than half for it, i think, cant remember the exact figure but im sure someone can clarify it.
  • thanks for that will check the agreement
  • considering there is only £2000 left, can't you just start the repayments again?
  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    They need a court order before they can repossess:
    If you've paid more than a third of the total cost of the HP or CS (not including any insurance), your lender will need a court order to take the goods back. If you've paid less than this, the lender still can't enter your property to take the goods without a court order, unless you give them your permission to.

    Taken from this website which may be worth you reading: http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php
    :p
  • petermb_2
    petermb_2 Posts: 1,565 Forumite
    Who is is the loan with?
    Did you get the loan arranged through an independent car forecourt?
    How much did you borrow?
    Did you include PPI and other insurances?

    There may be helo available.
    I am a former Broker, former IFA and former compliance officer, for my sins.

    However, I have since seen the light.
  • Take a look at your agreement.
    If it is a loan then your car cannot be repossessed - they can take you to court for non payment but a judge would only order a payment you could afford.

    If it is a Hire Purchase agreement then, as has been said, a court order would be needed as you have paid over a third of the HP price.

    They cannot just come and take the car without a court order.

    If it got to court a Judge would take into account your circumstances and the amount you have paid already and may well make a suspended order of repossession subject to you paying what you can afford?

    How much is the car worth - you could sell and settle the finance out of the proceeds if the car is worth more than the settlement figure on the loan - then perhaps get a runaround with any monies left over?
  • Ezee_3
    Ezee_3 Posts: 17 Forumite
    standupguy wrote: »

    How much is the car worth - you could sell and settle the finance out of the proceeds if the car is worth more than the settlement figure on the loan - then perhaps get a runaround with any monies left over?

    can you sell if its on HP?... doesnt it belong to them?

    also if you told the finance company you were looking to sell they can then say the goods are at risk and approach a judge looking to repossess straight away

    quite a useful site http://www.consumerdirect.gov.uk/after_you_buy/money_and_credit/hire-purchase/
  • the loan is with GMAC and we just went into the garage and bought the car. There was no other insurances on the agreement apart from some insurance which would cover the loan in the first couple years. It is on HP as far as I know - hubby going to speak to them tomorrow see if can make an agreement.

    Thanks for all your help - will have a look at the websites you have all given

    Aud
  • have checked the agreement and its a hire purchase agreement plan type 2004 purchase plan. It says under termination that can end this agreement as long as have paid £5990.20 and it says if have paid this amount plus any overdue instalments we will not have to pay any more provided we have taken reasonable care of the vehicle. It also says under reposession as long as have paid at least one third of the total amount payable ie £3993.47 they cannot take the goods against our wishes without a court order (in Scotland they may need to get a court order at any time- thats where we live).

    It also says if they take them without a court order or our consent we will have the right to claim back all the money we have paid.

    Hubby thinks should just take it back to the garage and leave it there!

    Still not sure what best thing to do is!
  • AntWal
    AntWal Posts: 15 Forumite
    You could try to talk to them and see if they will consider amending your payments to smaller amounts over a longer period. It could mean you end up paying more interest but it may be better than losing the car when you've invested so much in payments already.
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