Voluntarily surrender car to finance

LauriLove

Hi, I hope someone can help me as I have been worried sick about this issue.

My husband took out a car finance agreement last year and ended up couldn't afford to pay what they were asking. We recently got the letter in asking him to voluntarily surrender the car. He first phoned and the options he were given were to pay the full amount, surrender the car or for it to be repossesed at any time. We decided to surrender the car as the MOT was running out (ran out yestarday) so we sent the email with the signed and dated surrender notice yestarday and as it is Sunday we are having trouble contacting anyone to find out what happens now.

My issue is that the tax and insurance for the car also run out on the 1st (Tuesday) and I can't sorn the car as it is parked in a public car park out side my flat. Is my husband still responsible for the vehicle even after voluntarily surrendering it? If so what do we do from here! Thank you

Scad

Check the information in the email that was sent to you. If it is silent on it, you will still be responsible for taxing and insuring it until it is uplifted.

Superscrooge

1st Feb is on Wednesday, not Tuesday.

I would phone them tomorrow morning to clarify the situation. You may be able to hand the car back to them tomorrow or Tuesday?

poppasmurf_bewdley

Just to check - was the car finance a Hire Purchase agreement?

dieselv2

Can you not drive the car back to the garage, sign a handover document and get bus home or do they have to pick up from house?

motorguy

LauriLove wrote: »

Hi, I hope someone can help me as I have been worried sick about this issue.

My husband took out a car finance agreement last year and ended up couldn't afford to pay what they were asking. We recently got the letter in asking him to voluntarily surrender the car. He first phoned and the options he were given were to pay the full amount, surrender the car or for it to be repossesed at any time. We decided to surrender the car as the MOT was running out (ran out yestarday) so we sent the email with the signed and dated surrender notice yestarday and as it is Sunday we are having trouble contacting anyone to find out what happens now.

My issue is that the tax and insurance for the car also run out on the 1st (Tuesday) and I can't sorn the car as it is parked in a public car park out side my flat. Is my husband still responsible for the vehicle even after voluntarily surrendering it? If so what do we do from here! Thank you

Have they made it clear what will happen now to the debt owed?

They will pursue your husband for any shortfall in what he owed at the time versus what they get for the car at auction.

MrsTinks

motorguy wrote: »

Have they made it clear what will happen now to the debt owed?

They will pursue your husband for any shortfall in what he owed at the time versus what they get for the car at auction.

This is a REALLY really important point!

Unless you are over a certain point in your agreement and up to date with payments then you cannot just voluntary surrender without penalties. Make sure you appreciate what this will end up costing you and get it in writing! Chances are that you would be better off trying to borrow the money to settle the finance and then selling the car privately. If you have looked into all of this then carry on!

molerat

Voluntary Surrender and Voluntary Termination are 2 entirely different ways of returning the car. Voluntary Surrender can be made at any time, even if defaulted, and you will be liable for all costs less the value the car receives at auction. Voluntary Termination can be carried out at any time in the contract, unless defaulted, and you are responsible for paying half the total cost of the agreement.

forgotmyname

MOT less car though the auction for a fraction of its MOTd private sale price, even less than a dealers trade in price.

Add on costs to collect it an auction fees so you will probably owe almost as much as you did before they took it away.