Outstanding car loan after death

Moby

Further to this issue. My father died without an estate. I contacted Barclay's Finance and they asked me to sell the vehicle and send them the cheque as full and final settlement. The car is only worth about £1500 at an auction .....also I'm now thinking why am I attempting to sell this vehicle. Its got nothing to do with me. Surely Barclays Finance need to re-possess it and sell it themselves?

CH27

Is it a loan or HP?

jonjamie1970

Moby wrote: »

Further to this issue. My father died without an estate. I contacted Barclay's Finance and they asked me to sell the vehicle and send them the cheque as full and final settlement. The car is only worth about £1500 at an auction .....also I'm now thinking why am I attempting to sell this vehicle. Its got nothing to do with me. Surely Barclays Finance need to re-possess it and sell it themselves?

Maybe its a blessing here, but you might get more selling the car privately than through an auction, if they take it your going to get a lot less. But then again if there is no estate then they can't get blood from a stone. No home equity or pension payout etc ??

Moby

CH27 wrote: »

Is it a loan or HP?

Its a loan with barclays finance. My father died and has no estate.

chanz4

the car was the estate

magpiecottage

Moby wrote: »

Surely Barclays Finance need to re-possess it and sell it themselves?

They cannot REpossess it because they never possessed it.

The person who must deal with the matter is the personal legal representative of your late father.

They should also check there are no other creditors because any proceeds left after meeting priority expenses (funeral costs etc) will need to be divided between them.

Also, the personal legal representatives need to get the best price they reasonably can for the car. Selling it to a relation for less than the market value is one of the few circumstances in which they could make themselves personally liable.

Moby

Ok...... so the car itself is the estate but I repeat........ my father died without making a will, has no estate (apart from the car) and does not have anyone acting in a capacity of a legal representative. He also has no other creditors. So no-one need worry about these issues. My mother has no savings and lives purely on a state pension. She was not party to the agreement/loan.

My father took out a personal loan from Barclay's Finance to buy a car and was paying for it out of his state pension and incapacity benefit (due to his cancer).....the question is given the circumstances above.....what happens to the car now? As reading the thread indicates i have already sent Barclays the death cert and payments have been stopped etc.

Just as a matter of interest I've been told that the market value of the vehicle is £1700. The amount outstanding on the loan is about £5 000!

TonyMMM

Moby wrote: »

Ok...... so the car itself is the estate but I repeat........ my father died without making a will, has no estate (apart from the car) and does not have anyone acting in a capacity of a legal representative. .........

I've been told that the market value of the vehicle is £1700. The amount outstanding on the loan is about £5 000!

Someone (you or your mother ?) has to take the responsibility of dealing with your late father's affairs.

Unless any other agreement can be made, the car will need to be sold and the proceeds repaid to the lender . If there is no other estate they will have to write off the rest.

Bear in mind that funeral expenses take prioirty over other creditors when dealing with an estate , so the £1700 may be justifiablly used for that first.

System

As TonyMMM alludes to, if it is sold then it must be used to service the priority debts first so Barclays can still end up with nothing