Defaulted car loan

peasepud

I have been paying a car loan for over 2 years (of 4) without a problem. 3 months ago I had a few personal issues and as a result the account fell into arrears.

The problem was personal and not my ability to afford the payments but stupidly I didn't contact them to dirt it, it therefore grew to 3 months before I contacted them.

I was told it needed the full balance clearing immediately otherwise it would be repossessed. I explained this wasn't possible but I was willing to agree to any manageable agreement, the best they could offer was £250 immediately and the remainder (£453) a week later, I explained it was unlikely I could meet the 2nd part, that I'd try and I paid the £250.

I didn't manage to make the payment of £450, called them on the morning it was due and was told in no uncertain. Terms, that's the agreement, 450 by 7pm or we start repossession. 7pm came and I resigned myself to the date.

I then received a letter today saying contact us to sort it, I explained situation and offered to lay the outstanding balance over 2 months with about £100 or so of it today.

They wouldn't agree and now state it needs a payment of £700 to stop repossession.

Is there anything I can do? Surely my making payments should show I'm genuine and I don't feel my offer was unreasonable?

Do I have to just accept the car will go?

DCFC79

Can I just ask but why was direct debit not set up for this, if its an option of course ?

BillJones

peasepud wrote: »

Is there anything I can do? Surely my making payments should show I'm genuine and I don't feel my offer was unreasonable?

Why do you bring in the concept of what is reasonable? Do you haggle over what's "reasonable" to pay when you get to the checkout on Tesco? Do you negotiate over what's "reasonable" to pay on your council tax?

The contract that you entered into, you believed to be fair at the time, and you then chose to breach it. Arguing about what is "reasonable" is pointless, as the only thing worth now discussing is what is legal, allowable, and in agreement with the contract.

So, on that point, what does your deal say about late payments? Does it allow reposession? If not, can you raise a new loan to pay back what you owe? Is the car worth more than the outstanding and, if so, can you sell it and keep the balance after paying the finance off?

These questions matter. What you feel is reasonable does not.

peasepud

It was and all was fine then due to a combination of things happening it didn't get paid and DD was revoked.

BillJones

From the amounts that you mention, it sounds more as though they want the payments paid up to date, as opposed to the car being paid off in full, is that correct? It must be an awfully small car loan if a few hundred pounds will clear the lot two years into a four year deal.

I ask because, of so, I don't understand how you can't now pay back the difference. If the failure was not for financial reasons then you should still have the money in your account that was supposed to be paid out.

What is the size of the loan, and what were the monthly payments?

peasepud

There is currently around 5k owing on the loan, the outstanding balance is £453, it was 703 but I paid £250 less than 2 weeks ago. The monthly payments are £240 so realistically I'm less than 2 months in arrears.

Because I was unable to clear the £453 on Friday they now want £700 "to prove I'm financially able". The next months payment isn't due until the 1st and the DD is in place to make the payments as normal.

My point is that when they found I was unable to find the full £453 a few days ago their answer is to offer me the chance to pay £700. There's no logic to it.

I'm in a position to pay £100 (possibly £150) today and know I can pay another £150 or so before the end of the month so come the 1st I'd be about £150 (Max £200) in arrears which I can clear before the end of July.

Nobody wins this way, they repossess a car that's realistically worth £2k then have to fight for years to get the remainder. I'm left without a car and end up using the money I would have paid to them to buy a cheap car.

My whole reason for asking the initial question is that it's one thing to (quite understandably) want the arrears back but if I'm offering a perfectly sensible solution (and I believe it is) would a court see that as fair if they repossessed?