Please help - desperate (car repossession out of the blue)

zeeee

Hi,

A friend has recently received a letter from a finance company to say that they will be repossessing her car if £1100 is not paid. She bought the car on finance and has all the paperwork to say that she has fully paid for it -- the debt related to the previous owner of the car.

She bought the car a year ago from a garage and this is the first contact she has had from the company. I am not sure what she signed when she bought the car, but is it possible that she could be liable to pay off someone else's debt?

She is in dire straights as she cannot do her job without her car, she is pushed for money already so cannot pay the money outright to the debt company, and is unable to obtain anymore credit.

Any advice is appreciated.

Tixy

Hi

Unfortunately it looks like the car did not belong to the previous owner for them to sell on, this is not uncommon with private car purchases but as she bought from a garage is pretty worrying.

Was it a decent sized affair garage? like a main dealer or a tiny little place?

I guess her next course of action should be to contact the garage but she might want to get some advice first. Perhaps CAB?

If the car had outstanding finance then it belongs to the finance company and they can repossess it. She may need to take the garage to court to recover the money she paid for the car.

zeeee

I'm not sure about who/where it was purchased from - I will find out & tell her to contact CAB.

Do you think that if she contacts the debt company, they might let her pay back the debt in installments? Or is it not advisable to contact them by phone?

The letter actually says that the money should be paid by 10th March and she has just received the letter - this is the first she has heard about it. The company is Close Motor Finance if that is of any help.

Tixy

How much is the car worth?

Unless she paid below market price for it (to take into account the outstanding finance then surely she doesn't want to be £1100 out of pocket?)

They might allow installments but I would get advice first on the implications of doing this.

dancingfairy

Hmmm - I'm not sure about paying someone else's debts. Can't she get a new car on finance and let the finance company repossses the one she has and then take legal action as suggested by Tixy?
Maybe she could get a cheap loan and buy a cheap second hand car to get around in?
Since it's not her debt she could try communicating with the car company to see if they will give her time to get herself sorted with a new car -espcially as she has been caught in the middle of this mess.
I'm just really not sure about paying off someone else's debt tho
df

zeeee

Okay I've found out that the car was bought from a garage which is still operating, as she has been on the phone to them this afternoon. They have told her that it is nothing to do with them - that the previous owner did not disclose that these was still finance on the car, so it is her responsibility. Is this right or are they just fobbing her off?

Also she has phoned the finance company and asked if she would be able to pay the finance monthly and they have said no.

She paid around £4k for it, so if it is repossessed how does she know that she will be able to get the £4k back from the garage she bought it from?

She does not think she can obtain anymore finance to get a new car, and she doesn't have the money to even buy a really cheap run-around.

pelirocco

Did she buy the car on finance or did she have a personal loan ?

zeeee

She paid some of it to the garage and the rest on finance.

dancingfairy

Might be worth phoning National Debtline or heading to the CAB - I can't see how it's her fault about the car finance though - surely the garage has to check all the documents and any outstanding finance? - if not they should be made to do this.
Maybe Trading Standards could help - they may also have had previous problems with this garage? After all you don't know whether the garage is dodgy or what do you?
Hope she gets it sorted.
What about work - can they give her an advance at all? or do they have a discounted car buying scheme at all? or can they provide a company car?
Maybe her insurance can help - by providing a courtesy car - or legal help ? is this something they can do?
df

jamespir

there something baout his on the real hustle the other weekk its seems really harsh but they canty take it off her they have to go to the person who owned the car before she brought it

DGJsaver

Trading standards need calling on this one me thinks...