some advice needed please

HOLIDAYMAD_2

I had car finance with VW as my car was similar to yours brand new, and baloon payment at the end of 3 years. So i had the options of pay the baloon payment and keep it at the end of the three years or trade in and get another or return it with no cost.

As i defaulted at over 18 months - VW advised as did a debt charity or id paid so much into it that they could only take car back pre BR with a return to goods order from the court if i didnt return it. - i gave it back voluntary.
But they defaulted me on the full term remainding and got a final charging order on the property as well which was 1400 pound.

However- if i had defaulted earlier than either the 18 months or so many payment needed they could come and just take it back without a court order or my permission- so that is something you will need to get clarified.

That i think is what others mean about car security ie secure against the car.

I dont think its a secured loan ie secured on the property, - do a land reg check and if it is it will show on the Part B: Proprietorship Register - used to cost about 7.00 pound to do it on line.

VW also had a condition if any finance was still outstanding and i went BR then they could enforce possession of the vehicle even if a penny was owed.

if you didnt have car finance and had a standard loan (but i think you have the same as i did which is also called a leased car arrangement) this would mean you actually owned the car, but were paying it through a party not associated to the car, this is when people get like bank loans etc to purchase the vechile,


I think you have the same as me as you pay slightly less over the three years then a amount is paid at the end of the terms which is agreed at the outset of the agreement , my baloon payment was around 4k had i have wished to have kept that car, following 36 months at a set figure.

However if when you went BR and you did actually own it outright i understand only OR can say dependant on value if you could keep it , i was advised this is around 1500- 2000 pound , anything more its sold and you are given some back for a cheaper car etc but many posts have had different amounts agreed in the OR due to their circs etc.

Hope That helps.

JCS1

rhubarbarella wrote: »

OK, have just given myself a headache reading the teensy tiny small print of the car HP agreement.
It doesn't say ANYWHERE in he documents I could find that the HP was secured agianst the house (I actually couldn't find the bit that said it is secured against the car either though)

If it does not say it is secured against the house does that mean it is NOT secured against the house and is only secured against itself??

It does confirm that even if payments are up to date, if you go bankrupt they will repossess the car, so glad we stopped paying for it.

Thanks, looking forward to your response

It does sound like the HP is secured against the car in that case.

So, assuming the value of the car is less than the outstanding finance, then the OR will send a letter of non-adoption to the HP company (as technically it's not an asset as not owned by you). It is then down to the HP company to decide what to do, some let you keep the car if you maintain the payment, some take the car back regardless.

HTH

Ineedaname

Very concise and informative JCS