Car finance

nom_de_plume

G6JNS wrote: »

The OP has already said that they have refused that.

That's not how I read the first post

The options they are offering us are for them to take the car back, auction it off and pay off what they can, Or we somehow pay off the debt and do what we want with the car.

Lindsey76

The deposit was 2300 and the price paid was 7400 I think. Debt to pay is 5k ish.

getmore4less

What car is it? What' it worth?

You won't get the deposit back without selling it, or if the auction price gets more than the finance + costs.

The way we bought a car on finance privately was to make the payment direct to the finance company(get a response of no further interest) and the bit on top in cash to the seller.

The hassle free way will be to sell to a dealer and they will deal with the finance but you will get less.

nom_de_plume

Lindsey76 wrote: »

The deposit was 2300 and the price paid was 7400 I think. Debt to pay is 5k ish.

Based solely on these figures I'm going to guess that the car is worth more than £5,000 at trade prices (what a dealer / auction buyer would want to pay). The selling dealer would have a profit margin in the selling price but unlikely as much as £2,400.

The best price will likely be achieved from a private sale but the easiest sale would be through the motor trade. I don't know if the fact the owner is deceased would cause problems with the likes of we buy any car but that may be an avenue worth exploring. Also, despite the selling dealer's initial lack of interest it may be worth revisiting them and maybe offering the car on a sale or return deal at a slightly higher than trade price. They may like that as it gives them a 'free' extra car for stock without tying up any of their own funds.

getmore4less

nom_de_plume wrote: »

I don't know if the fact the owner is deceased would cause problems with the likes of we buy any car but that may be an avenue worth exploring.

DVLA seem happy with a relative signing the car over with a note saying owner deceased.

That leaves the issue of legal owner and getting the finance sorted, the trade will be used to this.

FreeBear

If the car is the only asset, and the remainder of the estate barely covers funeral expenses or is insolvent, instruct the finance company to collect the vehicle asap. When it is sold at auction, it is unlikely to cover the outstanding finance, and they wouldn't be able to chase for the shortfall.

This assumes that the finance was taken out solely in the father's name and there were no guarantors - Check the finance agreement carefully, there might even be a clause covering the death.

nom_de_plume

FreeBear wrote: »

If the car is the only asset, and the remainder of the estate barely covers funeral expenses or is insolvent, instruct the finance company to collect the vehicle asap. When it is sold at auction, it is unlikely to cover the outstanding finance, and they wouldn't be able to chase for the shortfall.

This assumes that the finance was taken out solely in the father's name and there were no guarantors - Check the finance agreement carefully, there might even be a clause covering the death.

I don't think it's being suggested that this is the case but may be wrong.

My mother is the sole executor of his will, and the car finance is the only sole asset he has.

g6jns_2

nom_de_plume wrote: »

I don't think it's being suggested that this is the case but may be wrong.

Seems very odd that someone can get finance and have zero other assets. They may be few and of low value but it is unlikely they are zero. As for the car being an asset it depends on what kind of finance it is. If it is HP then it is not an asset. Also many cars these days are bought on a lease purchase with a final " option to purchase" payment at the end of three years that means it is not an asset either. Perhaps the OP can clarify.

nom_de_plume

I think the key word is sole asset. Maybe there were joint accounts, a jointly owned property, etc. His wife survives him.

getmore4less

Technically there could be other assets such as a outstanding work/pension payment that should be kept separate.

There will also be personal assets although they may all be low value, not a big demand for second hand pants, but a wedding ring may be worth a bit.