car accident on finance

emmapyrah

Hi can anybody offer any advice?

My mum Bought a car on finance 6 months ago. The car is worth £5,000 but altogether the loan is £7, 000 including the interest etc. On 03/11/2013 a lady crashed into the back of it whilst it was parked outside our house. The insurance company want to write the car off which will be £5,000 which leaves the other £2,000 My mum can't afford to pay for a car she doesn't have and if she pays this then that means she can't afford to get another car. Is there any way she will be able to claim the rest off the other person's insurance? My mum didn't get offered GAP insurance and shes never heard of it so needless to say she doesn't have it. Please help as shes extremely upset over it. And any other advice would be appreciated.

Thank you

johnnyreggae

Its not as bad as you think and others will be along to reinforce this soon I hope and give better advice than I can

You will be able to pay off most of the finance using the car's write off value - the problem could be the fight to get a decent pay-off from the insurance plus a good settlement figure from the hp - there may be some debt left over unfortunately which if you are lucky can be rolled over into her next car

Jani9

Did your mum buy the car from a car dealership?

emmapyrah

Yes, she got it from a Nissan dealership

Jani9

I work in car sales and as far as I know they have to talk to your mum about GAP insurance as we are regulated by the FSA.

She should have signed something to say she didn't want it.

emmapyrah

Oh right. I haven looked through all her paperwork and there isn't anything that says GAP insurance. Would there be a separate sheet or is it worked into the contract. She says that they didn't explain and shes never heard of it before!

Jani9

Should be a separate sheet but they may do it differently to us.

Is the £7000 a settlement figure that your mum has got for today?

The fact she will need to settle it soon will mean she won't have left it the full term of the agreement so won't pay the full amount of interest if that makes sense.

Jonboy_1984

This link should help you calculate the loan early settlement figure http://www.financecalcs.co.uk/Calcs/Settlement.php .

emmapyrah

She is waiting for them to get back to her. It was too 'close to the weekend' we haven't had an actual amount yet, this is just what we are guessing as that's what it says on the paperwork (and shes only made about 6 payments). I can't see anything in relation to this so maybe they didn't give her any. We have spoken to the dealership for help and they aren't interested. The man who sorted this for my mum has since left.

Jani9

How much was the finance amount and for how long?

emmapyrah

7, 480.40 over 60 months. She pays 118.84 a month and paid 6 months