Car write off what happens to my finance?

SeanG79

How long have you had the finance and what is the term?

You can ask the finance company for a settlement figure. You can then get an idea of what your car is valued at to try to get an idea of value vs settlement figure.

Also depending on your insurance policy, you should get paid any surplus as imagine you ran a 5 year finance agreement and had only 8 months left on the agreement, the car value (insurance payout) could be well in excess of the settlement figure for the finance, or if you had paid a 50%+ deposit on the vehicle as extreme examples. Whilst at the same time if there is a shortfall, you will be liable to pay that.

Uncheckedfish

I've had the finance with them since October 2013 and its a 5 year agreement, the remaining amount is 4750 and the car is a 2007 vauxhall corsa club 1.4 with 50000 miles but think they normally sell now for around 3800. But yeah I know im liable so will make a plan if the payout is less than the finance.

SeanG79

Is the settlement figure £4750, or is that the outstanding balance? You will only need to pay the settlement figure.

£3,800 - £3,900 is about what the car values at on retail with that mileage.

Uncheckedfish

That's the closing balance according to the paperwork I've got including interest etc, the amount of credit when I first started the finance was 4495.

SeanG79

Ok, if you call the finance company, they will be able to provide you with a settlement figure, which will be less than the £4,750. The £4,750 would be how much you would pay from now until the end of the term if you ran the agreement for its full duration. (hope that makes sense)

Uncheckedfish

Yeah that makes sense completely, I'll give them a call. Thank you

Fred1080

What would happen if you only had car five months on finance and someone crashed into you and their repairer has written the car off

forgotmyname

You hope they pay out more than you owe, otherwise you have a debt and no car.

p00hsticks

Fred1080 wrote: »

What would happen if you only had car five months on finance and someone crashed into you and their repairer has written the car off

As forgotmyname says - you still owe the finance and so have to hope that the insurance payout fully covers it. Chances are in the early days it won't, hence 'GAP insurance' which you can take out and will cover any shortfall.