Car loans

CND69

Recently me niece (who lives in the channel islands) took out a NEW CAR loan with a well known manufacturer.

She could not afford to pay the first payment on the loan and the car was soon reposessed the second month. She has now been left with NO car and a bill for £5000.00 due to monies owed.

The garage has since sold the car on again to someone else.

Is she still liable for all or part of the monies owed ??

I am looking for some guidance on the correct way I should get her to enquire about her liability.

thanks

BigDave81

I don't know for certain so I am sure someone will confirm shortly but when the car is re-sold then this amount gets adjusted against the amount outstanding on the finance.

The car usually gets sold on at very reduced rates though so will not make a great difference.

Why did she take on a finance deal without even having the money to make 1 payment on the car, seems a bit ridiculous??? :eek:

ILW

Cannot see why she would not be liable. The car would have to have been sold as used, so an immediate loss there, plus all the expenses involved with reposession and any accrued interest on the loan.

wayne99

i had a car taken back around 8 years ago (ford finance) when i was out of work for a few months,

They sold the car at an auction, for 6k if i can remember the original finance amount was just over 12k

so example

car finance total 12k

sold car 6k

outstanding on finance 6k - must be paid to finance company.

thats how it should work anyway, best to study the finance agreement to see what the liabilities are.

CND69

When my niece took the finance out she was in employment. Within weeks of taking it out she lost her job. It was a total shock to her losing her job. She went from a 20k a year job to nothing over night.

I think the car was originally 9500, it was then resold for 7000. There would have been an element of interest involved but from what you are saying 5000 seems a big difference.

sp1987

CND69 wrote: »

When my niece took the finance out she was in employment. Within weeks of taking it out she lost her job. It was a total shock to her losing her job. She went from a 20k a year job to nothing over night.

I think the car was originally 9500, it was then resold for 7000. There would have been an element of interest involved but from what you are saying 5000 seems a big difference.

If the car itself was £9500 and sold for £7000 that is a £2500 loss to them already....so combined with £2500 in (lost) interest over the finance period seems pretty reasonable? She needs to check her total finance package and what she would have paid for the car over the whole period....if it is around £12,500 then she owes the remainder.

Unless I have majorly missed something?