Hire Purchase and Total Loss
TonySoprano
Posts: 44 Forumite
Official MSE Insert March 16:
We've a fully researched Cheap Hire Purchase guide you may find helpful.
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Hi Some Advice if I may
My car has been written off by my insurance company and they are in the process od settling the claim I am awaiting a settlement figure
I read in my agreement that the hire purchase agreement terminates automatically where a car has been declared a total loss
Is anyone able to explain what generally happens in cases such as this?
We've a fully researched Cheap Hire Purchase guide you may find helpful.
Back to TonySoprano's original post...
Hi Some Advice if I may
My car has been written off by my insurance company and they are in the process od settling the claim I am awaiting a settlement figure
I read in my agreement that the hire purchase agreement terminates automatically where a car has been declared a total loss
Is anyone able to explain what generally happens in cases such as this?
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Comments
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TonySoprano wrote: »Hi Some Advice if I may
My car has been written off by my insurance company and they are in the process od settling the claim I am awaiting a settlement figure
I read in my agreement that the hire purchase agreement terminates automatically where a car has been declared a total loss
Is anyone able to explain what generally happens in cases such as this?
You then go out and buy another car on a new HP agreement.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money.0 -
TonySoprano wrote: »Hi Some Advice if I may
My car has been written off by my insurance company and they are in the process od settling the claim I am awaiting a settlement figure
I read in my agreement that the hire purchase agreement terminates automatically where a car has been declared a total loss
Is anyone able to explain what generally happens in cases such as this?
I take it you took out Gap insurance0 -
HI Thanks for the reply that's what I thought but under the hire purchase agreement there were 6 payments left I presume the finance company will want that as well as the final balloon payment? so the remaining six months is still payable which ever way you look at it? less of course I presume some interest rebate?
Also I presume they (finance company) cant initiate any notice clause i.e 3 months notice to terminate ect ect
In a nutshell Car Loan was 10500, Deposit £2000, Total Repayments so far £4200 Im assuming they will want £4300 less an interest rebate as a rough guide?
What I mean is can they start lumping charges on for early termination, admin fees and all that milarky?
Sorry should mention the total interest is included in the £10500 figure above0 -
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TonySoprano wrote: »HI Thanks for the reply that's what I thought but under the hire purchase agreement there were 6 payments left I presume the finance company will want that as well as the final balloon payment? so the remaining six months is still payable which ever way you look at it? less of course I presume some interest rebate?
Also I presume they (finance company) cant initiate any notice clause i.e 3 months notice to terminate ect ect
In a nutshell Car Loan was 10500, Deposit £2000, Total Repayments so far £4200 Im assuming they will want £4300 less an interest rebate as a rough guide?
What I mean is can they start lumping charges on for early termination, admin fees and all that milarky?
Sorry should mention the total interest is included in the £10500 figure aboveTonySoprano wrote: »Thankfully yes on the insistence of the dealer and apparently the best type i.e accounts for increases to replace with a brand new like for like the car:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money.0 -
Thanks for that
I called the finance company today and I was a bit perplexed the chap at the call centre was a bit taken aback when I mentioned the terms stated that the agreement is terminated when a total loss occurs
he confirmed whilst the assett is terminated the agreement stays in place and I continue the monthly payments until the account is settled.
Strangely enough he also stated any cheque received from the insurance company that does not match the settlement figure at the date of receiving the cheque will be returned ! So they are not prepared to receive an overpayment and return the difference.
I got the impression they did'nt really care so now I will have to co-ordinate the insurance company issuing the correct amount given that the monthly installments will continue until settlement0
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