Car respossession

fivetide

Stigy wrote: »

He'll be lucky if anyone is mad enough to touch it with outstanding finance.

It's not difficult if you get the buyer to pay the debt off for the car so they know it is cleared. All hinges on whether the car is worth the outstanding amount. If it can be sold to clear the debt, it's not such a bad shout (mind, not sure if the debt being passed on complicates that)

Strider590

Guys..... Seriously, a mortgage is very different from buying a car. You can sell a house and get shot of the mortgage, but with a car your in negative equity (to the tune of at least 10% of its value) the second it leaves the showroom.

George_Michael

Strider590 wrote: »

Guys..... Seriously, a mortgage is very different from buying a car. You can sell a house and get shot of the mortgage.

Why is it very different?
Many people have sold houses and cleared their outstanding debt, but last year there were 827,000 households who were in negative equity in the UK and were therefore unable to have any chance of selling their property to get rid of their mortgage, so in effect, there often isn't much of a difference to buying a car on credit or buying a house on credit.

Many people could get their car repossessed and it may not have too much of an impact on their lives, but could the same be said if they lost their house?

mattyprice4004

Sell it and buy something cheap.

My most recent is a diesel, does 50MPG, is relatively modern and has cost zero in repairs.

Taxed and MOT'd for £790.

charitycase

Thank you for all your replies.
I have paid off more than 50% of the loan before I became unemployed.
LINK have been repeatedly calling me; unfortunately, I have had to ignore them due to matters related to a county court judgement!
During this time, they have sent me a letter stating that they need me to sign a letter giving them permission to repossess the car. I did not respond to that.

They call every two days now.

I will be ringing them tomorrow.
The trouble I am facing is that I cannot get them to agree to a smaller monthly amount, which I can afford. Surrendering the car would be my last option; if I sell it, I would not get enough to pay back what I owe (which, incidentally, is to the tune of £3500; the car's value is about £2800 according to Glass). This would leave me with no money to purchase a cheaper replacement.

Although I have not been sending payments (£1 a month token as someone mentioned), I thank you for the suggestion. I am thinking about sending a cheque for a token payment.
Sorry for the long post.
Thank you, again, for all your comments and the helpful links.

I will speak with Link tomorrow and see what they say.

motorguy

Strider590 wrote: »

Guys..... Seriously, a mortgage is very different from buying a car. You can sell a house and get shot of the mortgage, but with a car your in negative equity (to the tune of at least 10% of its value) the second it leaves the showroom.

Theres so much wrong with this. I'm embarassed for you.

Tilt

charitycase wrote: »

Thank you for all your replies.
I have paid off more than 50% of the loan before I became unemployed.
LINK have been repeatedly calling me; unfortunately, I have had to ignore them due to matters related to a county court judgement!
During this time, they have sent me a letter stating that they need me to sign a letter giving them permission to repossess the car. I did not respond to that.

They call every two days now.

I will be ringing them tomorrow.
The trouble I am facing is that I cannot get them to agree to a smaller monthly amount, which I can afford. Surrendering the car would be my last option; if I sell it, I would not get enough to pay back what I owe (which, incidentally, is to the tune of £3500; the car's value is about £2800 according to Glass). This would leave me with no money to purchase a cheaper replacement.

Although I have not been sending payments (£1 a month token as someone mentioned), I thank you for the suggestion. I am thinking about sending a cheque for a token payment.
Sorry for the long post.
Thank you, again, for all your comments and the helpful links.

I will speak with Link tomorrow and see what they say.

If they are ringing you that often, that could possibly be harassment. As I pointed out earlier in the thread, Link have a bad reputation with a number of complaints being made against them to the FSA. There are a number of threads about them on the CAG forum, here is just one; http://www.consumeractiongroup.co.uk/forum/showthread.php?203830-Link-ex-MBNA-arrogant-and-threatening/page2&highlight=Link+financial

If you are a BT customer, you can have the 'choose to refuse' service where by you can block certain numbers from calling you. In the meantime, my advice would be NOT to contact them. If they contact you again, insist they in future communicate in writing only.

As you have paid at least 50% of the loan, they cannot repossess
the car without a court order. I doubt that they will want to take you to court because i'm not sure they have an agreement with you to pursue. Your original agreement with the finance co would need to stipulate somewhere that they could pass any outstanding amount following a default to a third party. Does it? When you began to experience difficulties, did you contact the finance co to attempt to reach a solution or did they issue you with a notice of default?

Link are simply hoping that you will roll over which is why they want you to sign that document to surrender the car. I would be speaking to CAB before talking to Link further.

motorguy

Tilt wrote: »

As you have paid at least 50% of the loan, they cannot repossess
the car without a court order.

Once you have paid 50% of the total value of the loan you can voluntarily terminate, and they can do nothing about it.

I dont understand why thats not the scenario here?

Tilt

motorguy wrote: »

Once you have paid 50% of the total value of the loan you can voluntarily terminate, and they can do nothing about it.

I dont understand why thats not the scenario here?

Because I think that would apply under the original agreement with the finance co. But it appears the 'agreement' has been sold on to Link who are simply interested in recovering the debt at a profit.

As I see it, the original finance co have possibly breached their own agreement by passing it on to a third party while it was in dispute.

forgotmyname

If they reposess it is there also the chance of getting a bill for the balance after its sold at auction also?

Book price £2800, At auction it may barely scrape past £2000. with fees also you may get a bill for £2000+.