Car Written Off - Finance Outstanding

Gaz83

The best way to deal with this problem is to call the finance company, explain the situation and attempt to negotiate a repayment schedule - as has been pointed out several times on this thread already.

poppasmurf_bewdley

Is your brother in possession of the registration number of the car that hit his?

If he has, then surely he needs to report the incident to his insurance company, telling them that he does not wish to make a claim on his own policy, and tell them to chase up the owner of the vehicle at fault.

That's what they are there for, and why you pay a premium to them.

andyfromotley

ParkerJ wrote: »

Regardless how far the journey is the fact is he had a car, now doesn't. The car wasn't just for getting to work.

Even if he did get a bike, it still goes off the topic that there's a £3,000 shortfall.

Also to be clear, the insurance payout goes DIRECTLY to the finance company he's not taking a £2,000 chunk, then moaning, he can't pay £3,000.

The car isn't the issue, more about the best way to deal with this problem.

I think you can get bikes that go to multiple locations. ;-) Its a serious point though. He cannot afford a new car. Not even a clunker. He's £2-3000 in the hole for his car. A bike would solve one half of the puzzle, leaving him to focus on sorting the debt out.

foxy-stoat

ParkerJ wrote: »

I'm just baffled the fact that other people can go around damage other property get away with it and leave people in debt.

Its not the other driver's fault that there was some much finance owing on the car they hit.

Your Brother will be saving a fair amount on running costs for the car so he needs to keep paying it off as he has been and buying a bike until he has built up enough savings to settle the finance, then he can take out more finiance to get another car, just at a lower rate next time.

I know you said it was a write off but how much damage was caused and can your brother not buy the car back from the insurance company and repair it himself cheaply and keep using it?

I had a my 54 reg Vectra written off last year, got £1500 payout less £116 for the salavage, bought a wing and and bumper and head light off ebay for £80 and kept using it. BOOM !

Brooker_Dave

If the car still drives and can be repaired with used parts, withdraw the claim, mend it and keep job.

foxy-stoat

Brooker_Dave wrote: »

If the car still drives and can be repaired with used parts, withdraw the claim, mend it and keep job.

Or demand that it is repaired - as writing it off will cost your brother more than its worth!

Tiddlywinks

The car is subject to a finance agreement - ownership of that vehicle does not pass to your brother until the final payment is made.

Your brother entered into a contract to pay £xxx for xxx months in exchange for the use of a car - the small print will have detailed that all monies become due if the car is written off.

It's a hard lesson learnt BUT what do you want people to say?

The balance between the insurance payout and the outstanding finance is legally recoverable - it's business and it's fair. Why should the finance company take the hit for your brother's reckless decision?

Regardless of who was responsible for the accident - even if the other party had been adequately insured and accepted liability - the fact remains that the assessed value of the car now is lower than the outstanding finance.... it's called negative equity.

Your brother made a mistake and he needs to suck it up.