Help, Toyota car finance.

Stella66

Last year, July 2006 l bought a new car on HP. The cost price was £17,000 and l paid a deposit of £5,000 and have been paying £408 monthly towards the balance. I have been keeping up with my payments till April this year, my financial situation changed, so l phoned Toyota to negotiate a reduction in the monthly repayments. They refused, so l offered to return the car.

Toyota told me they will contact me about the arrangements of how the car can be returned. I have not heard from them since then (April) and l have not made any payments. I have contacted the garage where l got the car from, but they have not been contacted by Toyota.

The problem is l can no longer afford the car, and l don't feel comfortable keeping it without paying for it. Can somebody please help and tell me my legal position at present.

Thank you.

CCCS_Matthew

If the car is on HP you can hand the car back without any shortfall only once you are halfway through the agreement. That means you can simply hand the car back without having to pay any outstanding finance on the car (unless any work needs to be done on the car to restore it to a condition it could be sold)

However if the car is not halfway through the agreement you will have to pay the outstanding finance. In other words you can hand the car back, but you will be liable for the outstanding months. You wouldn't have had to pay the amount in full, as it would no longer become a priority debt.

If you continue to keep the car without handing it back the company are likely to take the car off you and you would be billed for the outstanding amount.

Hope this helps
CCCS

mariagti

You could always take out a loan to pay them off.You'll find a much cheaper interest rate than toyota and you can choose smaller monthly payments.

Then the car will be your so you can sell it pay off the loan then buy a cheaper car?

Stella66

Thank you for your quick responses. I will have to return the car tomorrow. It will save me a lot as the insurance and tax expire at the end of the month. The problem is l have been to the garage before and they refused to take it back. So where should l take it too?

rog2

Stella66 wrote: »

Thank you for your quick responses. I will have to return the car tomorrow. It will save me a lot as the insurance and tax expire at the end of the month. The problem is l have been to the garage before and they refused to take it back. So where should l take it too?

I would try, one last time, to contact TOYOTA. Failing that, I would take it, with copies of all correspondence, to the dealer from whom you purchased it.
Park it on their forecourt - if possible blocking their entrance/exit so they will have to accept the keys. If they threaten to call the police, great - tell the police that you have been trying to arrange for the return of the car and Toyota have not wanted to know.