Car on Hp

nissnoss

Hope someone out there can help.

I bought a car on hp and within 2 weeks of owning the car, I was involved in a crash that was not my fault and the car is a write off, The other party's insurance company is paying me out the full amount! Do I have to pay of the hp or can I buy another car with the insurance money and still keep paying my agreement?

balmk

Hi

You will need to conatct the finance company; it may be in your agreement with them that they own the car until you have paid it off.

hey should be able to give you some clear options on how to procees.

~Brock~

If it is a HP agreement the car belongs tot he finance company, and the insurers will/should send their settlement cheque directly to them. If this is insufficient to pay off the balance then you will be liable for the rest, unless you have GAP insurance.

You will then be free of your HP agreement and can take out another one to buy another car.

CHR15

I hope you have GAP insurance or you may find you owe the HP company a pretty sum after the payout. I doubt the HP Companies argue about settlement figures the way we would with Insurance companies.

~Brock~

CHR15 wrote: »

I hope you have GAP insurance or you may find you owe the HP company a pretty sum after the payout. I doubt the HP Companies argue about settlement figures the way we would with Insurance companies.

HP companies dont but GAP insurers do - I would recommend that ths OP speaks to his GAP insurers asap, assuming he has this cover of course.

CHR15

~Brock~ wrote: »

HP companies dont but GAP insurers do - I would recommend that ths OP speaks to his GAP insurers asap, assuming he has this cover of course.

That's what I mean, if he hasn't got GAP, the HP company may take the first (and pretty low) offer of payout.

If he has GAP, super.

PNPSUKNET

You can argue the price with the insurance company, I provided newspaper prints with BCT. Although if its a new car, if no gap guarantee £2000k bill as you loose this straight away

nissnoss

Thanks to all those that replied, ive done some more looking and yes do have to pay it off, so going to do that once I recieve the cheque, yes I did have GAP but didnt need it because the car did'nt have time to depreciate before it was wrote off, so getting the full amount back! Im just abit worried as my credit circumstances have changed and worried I might not get credit again. Thats where the thought came to just buy a new car, But yes will def be paying it off.

ILW

nissnoss wrote: »

Thanks to all those that replied, ive done some more looking and yes do have to pay it off, so going to do that once I recieve the cheque, yes I did have GAP but didnt need it because the car did'nt have time to depreciate before it was wrote off, so getting the full amount back! Im just abit worried as my credit circumstances have changed and worried I might not get credit again. Thats where the thought came to just buy a new car, But yes will def be paying it off.

I assume the car was not new then.

speedbird1973

Actually if a car is less than 6 months old most insurance companies will settle as new.

PNPSUKNET

The cheque wont go to yourself, the insurance before payout with search the hpi database and pass it on to your lender.