Log Book loans - Mobile Money, help!!

nik.

Hi, last may my partner took out a log book loan on his landrover for £1000 with mobile money. it was over 18 months and repayments were £168 a month. we fell on really hard times just before christmas this year and in november we took out another £200 which topped the loan back up to £1000, we were due to be paying back the original £1000 and then about £2000 in interest, steep i know but at the time it was the only option we had. in november when we got there and signed the agreement the guy there said the loan would be reset back onto an 18 month agreement again. Basically we have done nothing but chuck money at this car, it is constantly breaking, its been recovered atleast 3 times due to the turbos blowing on it, the most recent one hadnt even been on a week and its gone again so ive said thats it, we arent spending anymore on the car, the loan repayments are now £178 a month and to be perfectly honest i dont know how we are managing to pay it, some weeks we dont even go shopping! at the minute id be quite happy for them to repossess the car and be done with it but im not sure how we stand with the car being broken? they have the log book so we cant sell it and pay the settlement figure (which is £1100) so at the minute unsure what to do, we have spent over £4000 on this car in the last 2 years and are not going to spend another penny on it, i just need some advice on where we stand with mobile money and the car not actually running at the minute? any advice is appreciated thanks

poppasmurf_bewdley

What does it say in your written agreement with them?

nik.

it doesnt say a great deal to be honest, it says it must be kept taxed, tested insured etc and not rallied about, looked after and so on but it doesnt state anything about it breaking down, basically says its a bill of sale and if we fail to make the payments they take possession of the car, you then have 17 days to pay what you owe and if you still havent paid then they sell it on ebay. when we spoke to them at the time they said all cars have to go through ebay and they just have to take whatever it makes on an auction, if the amount is higher than what the settlement figure is any extra comes back to us, he didnt state anything about it not making the settlement figure i think they basically have to accept what ever it makes on an auction and the debt is settled but as i said i am unsure what would happen with the car being broken? surely they cant force you to have it mended and then let them repossess it? they would get told were to go anyway and would let it go to court as there is no way we are spending another penny on that car, even if it wasnt broken it would only make £2000 maximum and we have spent over £4000 on repairs alone so just cannot spend anymore on it. i would gladly let them come and bang on the door at 1.30AM and give them the keys, i say that because ive read online that is happened to a few people before now having big burly thugs turning up during the early hours!

poppasmurf_bewdley

I would imagine they would put it up for sale on eBay as "for spares or repair".

But if the car doesn't make what you owe them, I'm sure they will come after you for the shortfall.

Eonel

According to the Money Advice Service - if the sale of the car does not cover the balance of the loan then you are still liable for the difference

https://www.moneyadviceservice.org.uk/en/articles/logbook-loans