Car finance

eddie_sparrow

Please could anyone give me information on a problem my mother-in-law has. She is now 70 years of age lives on her own with no savings in a council house and unemployed. Around two years ago a family relative asked her to be his guarantor as he was buying a new car from THE CAR PEOPLE and as he had bad credit and they would not accept him.The company THE CAR PEOPLE used to allow their customers finance to purchase vehicle's allowed a 68 year old lady with no savings and does not own her own home and a monthly pension of only 480.00 to take on a debt of 280.00 per month on a high powered car not bad as she has never had a driving licence to make matters worse due to pressure from within her family or should i say the same person she took the loan out for in the first place she once again signed another contract with the same company this time so he could upgrade to a FORD RST now the debt has gone to 36,000 pounds at a monthly payment of 512.00 more than her monthly income . He put funds in to her account while he was working but now is unemployed the finance company have accepted a smaller payment until may but when that arrives she is afraid of what will happen my question is ? ON WHAT GROUNDS DOES A 68 YEAR OLD PERSON ONLY LIVING ON A PENSION WITH NO ASSESTS GET A 36,000 POUND LOAN on a HIGH POWERED TURBO VEHICLE where does she stand ?

CherlokHomes

It's hard to say bless her heart but it's her debt no no-one else's as she signed the T&C's under the agreement.

Her age has nothing to do with it as 68 is not exactly to old to drive.

Bankrupt may be the answer

imoneyop

She agreed to take out the loan, so unfortunately, she is going to have to live with the consequences.

That said, if she doesn't have the money to pay for it then even if they take her to court and get a CCJ all they'll end up with is whatever the court decides that she is able to pay.

longtermplanner

Is this a simple loan or is it HP? If it is a loan, then the car can be sold and at least some of the loan paid off.

AFK_Matrix

longtermplanner wrote: »

Is this a simple loan or is it HP? If it is a loan, then the car can be sold and at least some of the loan paid off.

Yeah good luck getting the family member to sell his sparkly new RST lol. It sound like he doesn't give a damn about his guarantor so won't sell it. Maybe if the rest of the family jump on him he might sell it.

Herzlos

If she gets a CCJ or whatever then surely they'll take the car back first as a way of reclaiming the money?

She has agreed to the debt, so she'll need to come to some arrangement with the loan provider, but hopefully that'll involve handing back the car which will take a huge chunk off the balance.

imoneyop

Herzlos wrote: »

If she gets a CCJ or whatever then surely they'll take the car back first as a way of reclaiming the money?

They would have to find the car wouldn't they and my reading of the OP is that they won't find it at her property, plus if it was a personal loan there will be no link between the car and the loan, so how can she prove that she borrowed the money to buy that car?

LittleMissGiggles123

I don't know an awful lot about this but I would think you need to find out if this was actually a personal loan or finance against the car. If HP then the car would form some sort of security & if it cannot be repaid, then regardless of what this 'lovely' member of your family says, the car will be repossessed.

I honestly hope it is, so this relative will learn his lesson! A horrible thing to do to your own family, regardless of age or financial position. I hope he gets what is coming to them.

x

eddie_sparrow

The car has since been stolen !!!

Vikipollard

Oh how convenient....


Oh well, at least the insurance payout can go towards paying the loan off....

You-kip

eddie_sparrow wrote: »

The car has since been stolen !!!

How I knew that was coming.