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36m car loan but the car broke down after 14months

Hi MSE community, a friend is 14 months into a 36 month (£6000) car loan agreement with Moneyway. Unfortunately his car broke down due to a major fault with the gearbox which will cost £1700 to fix.  I just wondered whether any know if the finance company (Moneyway) has a part to play in the repair? 

Comments

  • Is the loan just a standard personal loan, or some sort of HP agreement.  If it's a just a personal loan then your friend will have to fork out for the repairs himself.
    Even if it's a HP type thing, I wouldn't hold out much hope.  A gearbox fault on an older car (I'm assuming it is if it was bought for £6000) is, unfortunately, "one of those things".  Even more so it he's had the car for 14 months - he'd have a hard job convincing anyone that the fault was inherent when he bought the car.  Sounds like he's going to have to sort it out himself.
    Gearboxes can be expensive to fix, but has he looked at alternatives - a decent independent mechanic will cost less than a main dealer, for instance, or there's the option of buying a reconditioned unit.
  • kamkamkam said:
    Hi MSE community, a friend is 14 months into a 36 month (£6000) car loan agreement with Moneyway. Unfortunately his car broke down due to a major fault with the gearbox which will cost £1700 to fix.  I just wondered whether any know if the finance company (Moneyway) has a part to play in the repair? 
    It is very unlikely that the finance company are liable.

    After 14 months, it is difficult to the point of impossible to establish a fault present and developing at time of purchase, especially for a wear and tear item.

    Even if there is a used car warranty still in place, it is unlikely to cover a gear box.

    All that can be done is to shop around for the best price to fix.
  • We had a similar question with reference to a van not so long ago. A 36 month finance agreement is not a 36 month warranty, and your friend would have been wise to take out such a warranty with a company that provides them. 
    Cars break down, that's a simple fact of life. You cannot apportion blame for a mechanical failure on an older car.
    I came into this world with nothing and I've got most of it left.
  • We had a similar question with reference to a van not so long ago. A 36 month finance agreement is not a 36 month warranty, and your friend would have been wise to take out such a warranty with a company that provides them. 
    Cars break down, that's a simple fact of life. You cannot apportion blame for a mechanical failure on an older car.
    Except that used car warranties very often exclude the gearbox...
  • Shakin_Steve
    Shakin_Steve Posts: 2,797 Forumite
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 22 September 2021 pm30 2:42PM
    We had a similar question with reference to a van not so long ago. A 36 month finance agreement is not a 36 month warranty, and your friend would have been wise to take out such a warranty with a company that provides them. 
    Cars break down, that's a simple fact of life. You cannot apportion blame for a mechanical failure on an older car.
    Except that used car warranties very often exclude the gearbox...
    You can buy a warranty that will cover anything you want it to, but the cost might be prohibitive when the value of your car is taken into account. 

    A quote for my 7 year old astra with 87000 miles from the AA, £304:

    Almost all of the manufacturer’s original mechanical and electrical components as detailed in the policy document
     Diagnostic charges form part of a claim under this policy as agreed with our claims engineers
     In-car entertainment / Sat Nav providing the equipment is factory fitted up to a maximum of £500 including VAT
     Remote key fobs / key cards covered for electrical failure up to a maximum of £200 inc. VAT
     Working materials (oils and other fluids) where an authorised repair requires it
     Hybrid and electric vehicles – manufacturer supplied and fitted power generation and transmission components
     Parts replaced in pairs i.e. coil springs and shock absorbers
     Air-conditioning (factory fitted)
     Camshaft timing belt
     Casings in the event of a covered item causing damage
    to it
     Turbo/supercharger (factory fitted)

    The exclusion list had no mention of gearbox.

    I came into this world with nothing and I've got most of it left.
  • He will have to pay to get the car fixed, its nothing to do with the finance company.
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