Getting rid of a car with outstanding finance on -HELP!

BobSam

Hi, looking for any advice...


before we even met, my husband took finance out on a car. By the time we met he had stopped paying the finance. He has now entered an agreement with the finance co and is paying a certain amount off the debt each month. The problem is the car is fast becoming a nightmare. We have already spent £1000+ on repairs this year, and now something else major has gone wrong with the vehicle. Do we have any options in terms of part ex/scrapping the vehicle but continuing to pay the debit off?


I know this is a mess and it's a situation that he should never have got into but please only genuine advise, I don't need to be told what a mess we're in. Thanks.

Geodark

Big mine field selling a car with outstanding finance - if your hubby stops paying then they can come and take the car back from the new owner - wouldnt be very nice. Ideally the car should be sold and the proceeds used to pay off the balance.

My personal opinion? Don't do it. If anyone does an HPI check they will see the outstanding finance and probably walk away anyway.

BobSam

Thanks... at the moment it's not even road worthy. Presumably if we just let the finance co take it then he just carries on paying the remaining finance. Or can it be scrapped? I'm totally ignorant about cars having never owned one myself.

straighttalker

It all depends on how much the car is worth and how much is left outstanding.

One option if to hand the car back. This will only work if you have paid 50% or more of the loan. Not sure of the finer details, it may be 50% of the total value of the loan or 50% of the monthly payments. However, when the car is handed back, it has to be in a reasonable condition otherwise the finance company will chase you for the cost of bringing the car back up to a reasonable standard.

If the car is worth more than what is outstanding and you have time on your side, perhaps it worth investing some money in repairing it and then selling it to either a dealer or to a private buyer. Be clear about how much is outstanding in finance on the car as this will show on any HPI search. Any buyer should be able to pay off the finance to the company at which point they will remove any HPI entry on the car and the pay any balance to you.

mcpitman

Not sure if this is the best advice, however...

Can you take a loan out (unsecured on anything) to pay off the finance on the car, then sell the car and pay a large portion of the loan off?

If you are struggling to pay the car finance this may be difficult to achieve though...