Car finance, please help

whiterock74

my husband bought a car on finance back in september 2013, i believe i co-signed for it, unfortunatly my husband passed away in october 2013, I could not afford the car on my own as i already have finance on another, i now only have one income, i asked the finance company to take the car back and they said they would, they said they would sell it for me but it wouldnt sell for the much as it would be auctioned off, once they have done that i would have to pay them the difference, the forecourt price on the car was 5,995 with finance it come to 9,995, so if the car sold for say 2,500 which the finance company estimated it would go for, i would owe them the difference, so i would be paying for a car i no longer have, are they right to do this? something is telling me they cant as the car is still parked outside my house, and since january nobody has contacted me by phone or post that they will be taking the car? I havnt driven it since my husband passed, it has been sorn

thebritishbloke

Check your credit report to see if the agreement is also in your name. They can auction it off and get you to pay the difference.

There's one other option which is Voluntary Termination. Once you have paid off 50% of the total repayments (In this case, £5,000) You can give the car back and they can't do anything about it. This requires actually paying them the money and THEN giving them the car back.

You could try to sell the car privately and pay off the finance. You won't have to pay the whole £10,000 if you repay it as early as possible. You could try to get a bank loan to settle the difference, you'll probably repay less interest.

jellie

thebritishbloke wrote: »

There's one other option which is Voluntary Termination. Once you have paid off 50% of the total repayments (In this case, £5,000) You can give the car back and they can't do anything about it. This requires actually paying them the money and THEN giving them the car back.

If OP speaks to them, they might be willing to take the car now and then OP owes the difference between what they've paid so far and the 50% value. At least then, the car would be gone.

thebritishbloke wrote: »

You could try to sell the car privately and pay off the finance.

Won't be able to do this without the finance company's permission as it will show up on a HPI check as having finance attached to it.

OP - don't allow them to sell at auction, you're much more likely to be worse off than if you voluntarily terminate the agreement. And don't just wait for them to get back to you - if you're not making the payments, it's your credit file which is being damaged (assuming you are named on the loan agreement).

Foxy-Stoat_3

whiterock74 wrote: »

my husband bought a car on finance back in september 2013, i believe i co-signed for it,

Get a copy of the finance agreement so you know you signed it or not. Normally only one person buys a car not two unless he had bad credit.

Sorry for your loss, I hope you can sort this out ok.