Car Finance...help please

kate2009

Hi all,

I need some advice. I bought a new car on finance in 2006.
Unfortunatley I was lured in by a 0% interest rate, no deposit deal on a brand new car when I was younger and am now paying the price for it ( The payments were £234 per month, with a final payment of nearly £3K based on a 3 year payment plan.

Unfortunately due to a change in circumstance approximatetly a year later I fell behind on my payments, and also ran up other debts.

As I felt I had no other choice, rather than simply having the car repossessed and being left with the remainder of the debt. I did something silly, and sold the car. Using the proceeds to clear the arrears on the the finance and also my credit card.

I did not inform my finance company I had sold the car.

I have continued to pay the monthly installments, and am no longer in arrears.

However as my final payment is now due, and I do not have the money to clear the final payment in one lump sum I will need to re-finance for a further year.

I have the refinance pack at home but am slightly scared to open it!

I know that my finance company will want to see my V5 document to prove that I am still in possession of the vehicle, which I can obviously not produce.

Basically I need to know what the consequences of my earlier action are. Can they prosecute me for fraud? Can they take me to court? Or will they allow me to refinance providing I do not fall behind with my payments?

milliemonster

I think your only option with this is maybe to take out a personal loan rather than refinancing to pay off the balloon payment. Any sniff of the fact that you have sold the car on and yes the finance company would probably take further action, this would involve repossessing the car from the person you sold it to who in turn would most likely take you to court aswell as the finance company for fraud.

anniecave

or can you get a credit card where you can get a cash advance at a low rate or interest free rate?
For examply play.com (via MBNA) offered me this when I took out a new card and I think the fee was only 2.9% or something and there was several months interest free. If you're paying £234 a month you'll be able to pay it off within a couple of years by this method, even if you have to transfer it on again at the end of one low rate.

I would hope if you just pay off the finance they won't do any checks on whether you are still the legal owner.

Did you sell the car to someone you know or privately to someone you didn't or what? I assume they aren't aware there is finance outstanding ...

kate2009

Thanks,

If my credit was bad and I couldn't get a loan do you suggest any other options?

Also if I was taken to court, realistically what would the outcome be? Would it be a case of some kind of court appointed repayments. Or could it result in jail?

kate2009

Hi,

No that car was sold to someone I don't know who I am assuming didn't do any credit checks.

milliemonster

I don't think it would result in jail hun, if you can't get any credit then you're going to have difficulty as they will either want the car back or the balance paying. I would think also if you have a poor credit rating you won't pass their refinancing option either??, have you opened the pack yet to have a look at what it says?

You might be best ringing the CAG for advice

Do you have any family you can discuss this with to help you out and possibly pay them back?

inmypocketnottheirs

The finance compnay will easily be able to check via the DVLA if you have sold the car.

Gregstac

Hi
Must admit I did just the same thing as you quite a few years back. The finance company actually informed the police and they visited my home. They did not arrest me but did ask me to report to the station later that day where they read me my rights etc then took statements.
This ended up with me having to attend court where I ended up having to explain my actions. I was honest with the court and said that i didnt understand if my loan was secured on the car or if it was personal and thats why I sold it.
The end result was a CCJ and a order from the court for repayments but before court I had started a remortgage so as soon as I got the remortgage I paid the finance off in full.

Ok so thats what you could expect to happen, now regards what you should do? I would deffo ring and tell them as im sure dealing with them will not be as embarassing as having the new owner coming round having had the car reposessed from them. It will also help if they do decide to report the matter to the police.

Greg

iolanthe07

I pity the poor sod who bought your car, not suspecting that it was not yours to sell.

PNPSUKNET

will they not ask to see the car at the end of the 3 years?

Cazza

PNPSUKNET wrote: »

will they not ask to see the car at the end of the 3 years?

Not if you pay the balance in full, no.