Car finance settled after term if defaulted?

chrissy20vt

Hi people, I hope someone can help answer my query.
I have owned my car for 59 months, I had it on finance over 60 months.
after a huge dispute with the garage I bought it from cancelling my warranty for no reason at a time it needed warranty work, (that put me out of pocket) I stopped paying my repayments, I paid over 3/4 of the term,

My question is this,

When my term is up, next month, regardless of me being up to date, or not, or now the loan being with a debt agency, will the car show as finance settled once the 60 months have past? I intend to sell the car to repay as much as I can after negotiation with the said debt agency.

I'm assuming yes, as a debt agency own the remainder of the loan, and once the terms over, its over? Especially asbita been bought by the debt agency off of the initial loan provider?

Thanks people!

tinkerbell28

No. By stopping payments you've just harmed yourself and increased your costs.

The finance is independent from your other issues.

If the loan was secured on the car, it will still shown on a HPI as finance outstanding.

It would only be over, if you'd kept to the agreement and paid the debt.

Bangton

I'm sorry but really what an Earth were you thinking?

As tinkerbell28 says the finance is separate from your issues with warranty that will be provided by the garage. I can't understand at all why you would go down the route of stopping car finance payments over an argument with your warranty. Your now behind on a debt which will have harmed your credit rating, you are likely to have incurred further charges not to mention the risk of losing said car.

In terms of selling the car, you scuppered as of course it will show that there remains a debt against the car and it will continue to do so until you have settled any outstanding balance.

Honestly, why??!

molerat

Until the finance is paid off you do not own the car, you can not sell it (to anyone with any sense anyway) as it will show up as on finance, the finance company have to remove the finance marker from the register. Have you checked your credit report, it probably shows late markers now, it will be trashed.

gb12345

Some light reading for the OP s to what her rather stupid approach is likely to achieve.

https://forums.moneysavingexpert.com/discussion/4772753

iolanthe07

A lot of people don't realise that issues they have with a supplying dealership have nothing to do with finance arranged separately. They're not stupid, they're just not savvy as to how these things work and thus shoot themselves in the foot when they stop their finance payments.