PCP Shortfall

danwoodward

Hi,

I recently was involved in a car accident and my car was written off. The accident wasn't necessarily my fault (guy in front slammed on in front of me on a motorway) however insurance company told me that by law because I had gone into the back of a vehicle I had to accept responsibility.

The car a Citroen C1, 2014 plate, 18,000 miles - The insurance initially valued my car at 5,400 which to be fair was a pretty decent price. However after speaking to the engineer (who was actually pretty down to earth and a decent guy) I managed to get the price to 5,600 minus excess (a price I was happy with, as if I was to go and sell my car or part ex it I would have got considerably less)

My car was on PCP and my settlement was £6298. Meaning I am left with a shortfall of £948 (I am aware that this is not as big as some people are left with). Unfortunately I do not have that sort of cash nor do I have GAP insurance. So basically I am looking for some advice.

I know I signed the contract but the car has been basically paid for OTR £9,500 (£9,900 paid so far). The remaining is basically interest, delivery charges and admin fees. Obviously do not want to be paying for something I do not have, I also dont fancy putting £948 on my credit card.

Has anyone been in this situation before? Did they manage to get the finance company to wipe some of the debt? or any other type of advice anyone may have would be greatly appreciated.

Car_54

The only advice that springs to mind is to leave a 2 second gap in future.

angrycrow

Hindsight is a wonderful thing but this is what gap insurance is for.

With regard to the slam on claim this does not sound like a slam on as the fraudsters don't tend to use motorways due to the very high risk of receiving an actual life changing injury instead of whiplash. Far more likely you were simply to close to the car in front as very few drivers maintain a safe distance on the motorway.

Unless the other driver is prosecuted for fraud this will be a fault claim.

You will have to agree a settlement plan with the finance company for the outstanding balance. Others may be able to give an alternative suggestion.

amandacat

I'm no expert but if it was me I would call the finance company and advise them of the pay out the insurer will provide and check if they are happy to accept this as full and final payment.

If they want the difference, explain you can't pay and see what options are available.

danwoodward

Thanks for the advice! I was being serious! If you have no value adding advice please dont bother opening your mouth! Know it all!

I was well with in breaking distance - however the roads were not in the best conditions and mistakes happen.

Car_54

danwoodward wrote: »

Thanks for the advice! I was being serious! If you have no value adding advice please dont bother opening your mouth! Know it all!

I was well with in breaking distance - however the roads were not in the best conditions and mistakes happen.

I seriously doubt that. 24 car lengths at 70 mph?

Anyway, too close to react in time.

danwoodward

Car_54 wrote: »

I seriously doubt that. 24 car lengths at 70 mph?

Anyway, too close to react in time.

No I wasn't 24 cars length but I also was only travelling 40mph due to weather conditions etc.
But yes anyway I'm not here to discuss how my crash happened. Nor am I here for a driving lesson.

Just a guy who's looking for some help and guidance.

DUTR

danwoodward wrote: »

No I wasn't 24 cars length but I also was only travelling 40mph due to weather conditions etc.
But yes anyway I'm not here to discuss how my crash happened. Nor am I here for a driving lesson.

Just a guy who's looking for some help and guidance.

Thankfully, you have self diagnosed, people are not telling you off, and you have to expect that not all responses are going to be covered in cotton wool. At 40mph, you are talking over 30 metres safe gap, and probably more due to weather etc as you say.
You won't have to put £948 on the card, you continue paying the monthly payments if you can't settle up in full.
Just not paying will only highly lead to tarnishing your credit record for future loans .

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amandacat wrote: »

I'm no expert but if it was me I would call the finance company and advise them of the pay out the insurer will provide and check if they are happy to accept this as full and final payment.

If they want the difference, explain you can't pay and see what options are available.

If you still had the car in good nick, you could just hand it back, (paying nothing except the "cleaning" and "paint repair" bills) so they would have a car that they would simply auction for less than the insurance pay out that you have got for them. So they will gain anyway

You never know.....................

thescouselander

DARK times indeed; I'm not sure this MATTER will be sorted out without stumping up the cash.

usefulmale

danwoodward wrote: »

Thanks for the advice! I was being serious! If you have no value adding advice please dont bother opening your mouth! Know it all!

I was well with in breaking distance - however the roads were not in the best conditions and mistakes happen.

You certainly were in breaking distance. Your car is all broken up, written off.

If you had been well within braking distance and paying attention, you would not be in this predicament.