HP settlement after write off

DFWannaBee

Hi, I hope this is the right board but having a bit of a panic.

My husband was in an accident today, the other partys fault entirely but its caused a lot of damage to the car and I'd be astounded if it wasn't a write off. We are 24 months into a 60 month HP agreement on the car, I thought we had GAP but looking through the paperwork turns out we don't which I'm gutted about but nothing we can do now. They definitely won't be paying us whats outstanding but my question is as I understand it they will settle directly with the finance company and pay out to them. Will the finance company be working on a figure if we settled right now ie early settlement with interest rebate or will they be wanting the full outstanding amount on the agreement full interest and all on the whole 60 months? The interest rate on the agreement is quite high so this is a huge difference if so. I assumed it would be an early settlement figure but reading on the internet has me worried this is wrong.

Also, have looked on the parkers guide for a guide valuation, no idea which is the one to be looking at (part ex, private or dealer?!) and the difference is massive so if they go with one of the lower figures, will we be liable immediately for the outstanding finance in one go or will we be able to sort a payment plan for this?

Sparx

It would be the early settlement figure, as if you was paying the finance off yourself in full. Not the whole balance and interest for 60 months, don’t worry.

For best price, just use Autotrader look for same make, model, age and similar mileage to compare. Use these as negotiation on price with your insurer. You obviously want as much as possible, push the best you can.

DFWannaBee

Sparx wrote: »

It would be the early settlement figure, as if you was paying the finance off yourself in full. Not the whole balance and interest for 60 months, don’t worry.

For best price, just use Autotrader look for same make, model, age and similar mileage to compare. Use these as negotiation on price with your insurer. You obviously want as much as possible, push the best you can.

Phew ok that eases the pain somewhat thank you! Got myself into a cold sweat reading everything online for a moment there.

Yep I've got autotrader adverts screenshot ready as well as valuations from WhatCar & Parkers. Going to push for as much as we possibly can to get that shortfall to a minimum

Sparx

What’s the settlement figure and your car’s approx value?

DFWannaBee

Sparx wrote: »

What’s the settlement figure and your car’s approx value?

We need to call them tomorrow but I think from using an online calculator the settlement should be around £3400

The value according to Parkers is £1800 private, £2500 independent dealer or £1600 p/ex

Autotrader looks around £2300-£2500 realistically to get a replacement similar in year mileage condition to what ours was from local dealers