Personal Car Loan after Death

Matthew_c

Hi there,


My stepfather recently passed away and had purchased a vehicle around a year ago.


The vehicle was bought using a personal loan through the finance company...it was not on HP.


The vehicle is worth around £5200 and has £5600 finance outstanding.....The main issue is that there is no money left in the estate to pay for the funeral, the existing finance on the car nor the £1500 outstanding on the mortgage...(there was a policy in place but it did not cover the mortgage in full)


If the car is sold can the money be used to pay primary debts like the funeral/mortgage or will the money be needed to pay off the car finance ?


Thanks


Matt

Gaz83

Matthew_c wrote: »

Hi there,


My stepfather recently passed away and had purchased a vehicle around a year ago.


The vehicle was bought using a personal loan through the finance company...it was not on HP.


The vehicle is worth around £5200 and has £5600 finance outstanding.....The main issue is that there is no money left in the estate to pay for the funeral, the existing finance on the car nor the £1500 outstanding on the mortgage...(there was a policy in place but it did not cover the mortgage in full)


If the car is sold can the money be used to pay primary debts like the funeral/mortgage or will the money be needed to pay off the car finance ?


Thanks


Matt

Sorry for your loss. However, your post isn't very clear. You say it was a personal loan but make repeated mentions of finance.

Who was the product with? What type of product was it? Was it a loan secured on the car?

Personal loans are usually unsecured.

Matthew_c

Hi there,


Apologies...it was an unsecured personal loan....Personal Loan with Hyundai Finance. They provided the unsecured personal loan


Thanks


Matt

Gaz83

If it's an unsecured personal loan, then if you sell the car the funds will be added to the estate - they won't be attached to the car.

Matthew_c

Does that mean that I can use the funds to pay off the Primary debts ie Funeral and Mortgage ?


Thanks

simpywimpy

yes pay the funeral first of all, then the mortgage

dresdendave

Possibly got the wrong end of the stick here, if there is £1500 left to pay on the mortgage, won't the property then be part of the estate?

Matthew_c

The house automatically transferred to my mother but you could be right. Need to check this also

chanz4

wont she then owe the £1500 and not your dad?

bris

Is the mortgage in joint names? If so the survivor takes on this debt in full so it can not be paid from the sale of the car.

bris

simpywimpy wrote: »

yes pay the funeral first of all, then the mortgage

Pretty sure it's the other way round, secured debt comes first, (if sole ownership)