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Double Car Payments

mtsd1
mtsd1 Posts: 12 Forumite
First Anniversary First Post
A few weeks ago I had an accident and subsequently the car was a write off.  I have received a letter from the company the finance was through regarding an early settlement, with a sense of horror it occured to me that on purchasing another car I will be paying two sums for two cars.  Could someone clarify this for me please, as if so another car is not an option.  Many thanks.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Yes, you need to pay for any and all cars you buy.

    If you received any insurance payout, use that.
  • DrEskimo
    DrEskimo Posts: 2,364 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    The settlement will go towards paying down the finance. Depending on what your pay out was and what the settlement was, will determine whether you may have money towards buying another car, or whether you have a shortfall and need to pay more money to fully settle your existing finance. 
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    You will for the written off car until you clear the finance or until the insurers send them the money.  With a bid of luck you wont owe anything on the first loan so you can go ahead and buy a replacement car.
  • chanz4
    chanz4 Posts: 11,033 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    Take ALA on your next car
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • mtsd1
    mtsd1 Posts: 12 Forumite
    First Anniversary First Post
    edited 12 March 2020 at 2:30PM
    I did have GAP insurance and with ALA, thankfully.
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