Car Theft - outstanding finance

I found my car has been stolen today and i’m really worried about the payout I’ll be facing if it can’t be recovered. I’m wondering if anyone has had a similar experience or some advice that I may come how receive a better outcome than expected. 

I have outstanding high interest finance on my vehicle which is £3903 as an early settlement figure and after a quick valuation online my cars current market value is £2688 which may differ depending on the insurance company. 

My excess fees are £295 which totals to a potential of being out of pocket by around £1510 which in my current circumstances is completely unaffordable but also leaves me without a car for work which is a necessity. 

The car was was purchased in April 2023 and the registration is 2012 - hence no eligibility for GAP insurance. 

I’m under the impression that there’s not really anything that can be done but hope that there may be someone out there who can offer some useful advice. 


  • DullGreyGuy
    DullGreyGuy Posts: 9,230
    First Anniversary First Post Name Dropper
    Your insurers are liable for the pre-accident value of the vehicle net of the excess. How you funded the vehicle and what the outstanding balance is doesn't impact what their liability is (just potentially to who the money will be paid if the finance is secured on the vehicle). 

    GAP insurance is the natural solution to deal with this situation but you say you dont have it and so no point going into that.

    Clearly your main hope is going to be that the vehicle is recovered swiftly with minimal damage so it's not a write-off. 
  • caprikid1
    caprikid1 Posts: 2,113
    First Anniversary Name Dropper Combo Breaker First Post
    Step 1. Argue strongly with your insurance company about the value of the car
    Step 2. Find money for excess
    Step 3. Replace car with like for like.

    If you do the above correctly you should be out of pocket £295 (Your excess).

    You were already out of pocket for £1200 as that is what you paid less the current value getting it stolen did not change that.
  • Herzlos
    Herzlos Posts: 14,620
    First Anniversary Name Dropper First Post
    Unfortunately with any car purchase on finance the car is usually worth less than the finance at least at the start of the term unless you put in a significant deposit. It's valued in the same way as if you'd paid cash; you paid £4k for a car now worth £2.5k and thus you're in a hole for that amount.

    With finance it's a bit worse as the insurer will pay the finance company so instead of getting £2.5k you're just going to owe £2.5k less.

    You're only real options are trying to prove your car is worth more than the estimated £2.5k, and trying to refinance the outstanding balance because I bet you're paying a pretty high rate of interest for the car.

  • Goudy
    Goudy Posts: 1,431
    First Anniversary First Post
    edited 9 October 2023 at 11:11AM
    Car values haven't decreased that much since April and when you settle the finance you should only have to pay a max of 56 days interest on the capital, so I can't work out why there's such a gap.

    Did you over pay for the car or borrow more than you needed?

    Where has the early settlement figure come from, have you worked it out based on payments left to pay or got it from the finance company?

    Yes you will be out of pocket, but I would have though a few hundred (56 days interest, the excess plus the payments already made) rather than such a large gap.
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