In a bit of a pickle...

stokegal

I am planning to go bankrupt in April/May and my question is about my car. When I bought ther car the gararage sorted out the finance on it but I am unsure if it's HP or was a loan - I have the paperwork in front of me - is there any terminology I can look for to deduce what it is.

Now... the MOT is due to expire on the car tomorrow. Do I renew this or not? If I don't renew it - it'd be placed on a private driveway and I obviously wouldn't drive it but my dilemma is..

If the car is on HP - I wouldn't renew the MOT as I shall contact the car company to come and reposess it (They have already been out twice to value the car as I am behind on payments)

If the car is not on HP - the finance company can't reposess without a court order as I have paid over a third of the initial balance and by that time I should be bankrupt, but I wondering if I should renew the MOT and would the OR let's me keep the car (it's worth less than £2000 and I do need it for work as I work 25 miles away down the motorway)

Does this make sense to anyone?? Thanks for any help

dubiousone

I was in similar situation, for months I thought my car was on HP, it was only days before going BR that I found more paperwork on it and it confirmed that the finance was a fixed term loan agreement. This meant I owned the car from the date I signed for it as opposed to HP which means you only own it when the final payment has been made. Check your paperwork thoroughly, it should be quite clear at the top left hand corner of the paperwork along with some wording about being 'consumer credit act 19xx' which shows the cost of the car, interest, term and monthly payment. If you can't find it still, then contact the company and ask them if it is on a fixed term loan agreement or HP.

Hope this helps a little.:D

stokegal

Thanks - It has some blurb on the paperwork about The Consumer Credit Act 1974 and then it has the following

Key Financial Information
A: Amount of credit
B: The duration of the Agreement
C: Total Amount Payable
Repayments
E: APR

then under "Other Financial Information" it has the following
F: Description of the Goods Financed
G: Cash Price of Goods
H: Deposit
I: Total Charge for credit
J: Total Charge for Credit

Does this sound like it's a fixed term loan then?

stokegal

BTW the agreement is with a company called "Park Motor Finance Ltd" if anyone has any dealings with them

fiveyearplan

It sounds to me like it is HP because of the wording about paying 1/3 and court order and the fact that they have been out to repossess. If it was a loan then it could have been for anything and the car probably wouldn't be secured against it.

But this is just my hunch - I'm not 100% certain.

stokegal

Thank you for your reply, does anyone know that if I don't MOT it but keep it off the road will I still get a fine?

stokegal

Can anyone help with my question above?

Thanks in advance

spenderblender

from what I can gather looking around the sites it looks like you will get a fine if you don't do sorn or tax.

totally_bungalowed

Superblenders right I believe ...if it's not taxed then you definitely need a sworn, if its taxed then it doesn't matter.... you can stick anywhere you like to ( within reason ofcourse):rotfl: :rotfl: :rotfl:

fiveyearplan

stokegal wrote: »

Thank you for your reply, does anyone know that if I don't MOT it but keep it off the road will I still get a fine?

You don't need an MOT to keep a vehicle on your driveway (or off the road). You only need to have a SORN if you are not taxing it.

stokegal

Thank you for all your responses - I taxed the car last month but have not MOT'ed it so it is sat on a relatives driveway.