Car finance problem

xhurlywoo

Hi, can anyone give us some advice??

We took out an options finance agreement with ford credit in 2015 for 2 years for our car. Long story short the contract is up, i still owe a couple of payments until the contract ends and then i need to return the car. This will mean i have no car as i cannot re finance it or get a loan to pay off the remaining balance on the car (£9000) ford credit have advised me it will be passed to a debt collection agency soon if it isnt paid or returned. My question is, if the balance is passed to a debt collection agency, will they accept a payment plan or will they send debt collectors for the full amount, as i have the money to pay monthly payments i just cant get credit at the moment. I am also in the process or arranging a debt management plan with step change to get my other debts in order and i already have defaults on my credit score.

Thanks

MataNui

Question.
Are you suggesting you dont return the car as you should, instead keeping it and hoping the debt collectors will arrange a payment plan so you get to keep the car?

xhurlywoo

Yes, I didnt originally want to keep the car but at the moment i can see another way out. Other than giving the car back and them sending it to a debt collector for the remaining money owed

MataNui

Sounds like its a PCP deal. The car is not yours. The deal is there is an option to purchase the car for 9000. Otherwise you hand it back. You cannot keep it. Its not a 'debt' to be passed on as you havent agreed to purchase the car. You are effectively stealing it.

What will happen is the finance company will seek to repossess the car. If you hand it back then all is done and square (though you wont have a car but that is your problem). If you try to keep it then you will find likely court proceedings, a totally trashed credit file and bailiffs turning up with a low loader to take the car away. You will be billed for court costs, bailiffs fees and recovery costs. In other words a really, really stupid idea.

The short answer is simply 'The car is NOT yours to keep'.

n217970

This is a very bad idea. I would suggest you return the car and look to replace it with something that you can actually afford.

I am not sure but could this possibly be construed as theft?

System

They'll just send bailiffs round with a low loader to recover it then send the OP a bill for the costs involved in that recovery plus any additional costs if the OP doesn't give them the keys etc.

motorguy

xhurlywoo wrote: »

Yes, I didnt originally want to keep the car but at the moment i can see another way out. Other than giving the car back and them sending it to a debt collector for the remaining money owed

This is a wholly bad idea will will result in them repossessing the car and taking you to court for any incurred costs and losses on their part.

It sounds like you are in a PCP type deal which means you simply hand the car back at the end of term with nothing further to pay (subject to fair wear and tear guidelines)

IamNotAllowedToUseMyName

Going back to the original post, are you saying that the contract period has ended, but you have missed a couple of payments and you still have not returned the car.

If I have understood correctly, then you will be billed for additional time you keep the car, no doubt at some very disadvantageous rate.

You've got into debt, trying to keep the car because you will be carless seems like you are trying to attempt a "possession is 9/10s of the law" approach. It won't work.

Return the car, and at least the clock stops ticking on the debt. At least you are working on your debt, but you let yourself be conned into the car lease for a car you couldn't afford. I don't have a lot of sympathy for the dealers who do this to people - I understand how tempting it is and how difficult it is to see what you are really paying for, but as you are already screwed financially, then don't make it worse, you'll just increase your debt and get all sorts of nasties on your credit record.

neilmcl

IanMSpencer wrote: »

Going back to the original post, are you saying that the contract period has ended, but you have missed a couple of payments and you still have not returned the car.

I read it as being the contract is up in a couple of months time.

I agree with what's been said OP, the car doesn't belong to you and will be repossessed if it's not handed back when due.

MataNui

neilmcl wrote: »

I read it as being the contract is up in a couple of months time.
.

Thats how i read it which is why i asked. I read it as the PCP ends in a couple of months (so a couple more payments to make) but the OP has realised they cant afford another car and cant afford to finance the balloon so plans on just keeping (stealing) the car and hoping they can try to do a deal with the debt collectors. As far as i am concerned it is basically theft though the finance company will likely just send bailiffs to repossess rather than the police.

k3lvc

MataNui wrote: »

Thats how i read it which is why i asked. I read it as the PCP ends in a couple of months (so a couple more payments to make) but the OP has realised they cant afford another car and cant afford to finance the balloon so plans on just keeping (stealing) the car and hoping they can try to do a deal with the debt collectors. As far as i am concerned it is basically theft though the finance company will likely just send bailiffs to repossess rather than the police.

I read it this way too - brave move from the OP which could backfire horribly - interested whether this could be a 'theft' and result in criminal conviction ?