Car finance mess

Teaandbiscuits21

Hi I’ve joined this forum purely with wanting some advice and guidance on what to do regarding my car finance.

So in August 2020 I took out Conditional Sale (CS) finance totalling £14,357 on a 60 month term. Payments £243.34 a month. Things all going well never missed a payment until a couple of years down the line. Circumstances changed, I started a family and went on maternity leave, earnings significantly dropped, struggled to make the payments. Even after a few phone calls with them I still couldn’t afford to get a plan in place that would clear the arrears on top of the monthly payment. 

The inevitable happened in January 2023, i got a knock at the door from the repo man. Of course he wanted me to agree to let him take the car, I said no, he couldn’t take it because I paid over half and he would need a court order. So off he went and he made sure I got in contact with the finance company. To cut to the chase here in March 2023 a court order was granted. Monthly payments went up to £313.71. I managed to pay these for some time, however circumstances have changed again and it’s been a struggle. 

Currently I’ve not a made payment now since October. This is what I don’t understand, I was under the impression that with the court order if I missed even a single payment, the repossession man would be back and the car would swiftly be removed. However I’ve had no contact from the finance company since August 2023 when I missed one of many payments, where I got an email titled “We haven’t received the full payment due under your court order”.  The only other communication has been a statement of accounts which they annually send every year automatically. I just find this strange they aren’t chasing me for these payments I am missing. 

However I am aware this can’t go on forever so I need to figure out what to do.  Left to pay I have  £4,833 which is meant to be paid off in August this year when the 60 months is up. That is not going to be possible. I’ve tried we buy any car etc but their quotes for the car come up AT LEAST 1K short of the balance I need to clear. I also don’t want to contact the finance company in fear they will be like oh hell we should of repossessed this a long time ago. I’ve paid 10k off it already and the car wasn’t even worth that when I got it! So I don’t know what to do. Help? 

DrEskimo

Have you tried quotes from any where else other than WBAC? Local garages, local dealers, etc.?

If you can get to the settlement figure that would be easiest route, but do you still need a car? If so what are your plans for a replacement?

Teaandbiscuits21

DrEskimo said:

Have you tried quotes from any where else other than WBAC? Local garages, local dealers, etc.?

If you can get to the settlement figure that would be easiest route, but do you still need a car? If so what are your plans for a replacement?

Not yet no, I’ve not gone that far. Just a curiosity search online the other night on Wbac and a couple others. I’ll add there is some damage til the car , the rear bumper needs repairing it has a huge dent down it.

I do still need a car which is what’s making it tricky. I’m not sure I’ll get finance again? Already a poor credit score. 

Teaandbiscuits21

bump ………..

ManyWays

I know this must feel like your biggest problem, but what other debts do you have, any others that you are still making normal payments to, any you are in a payment arrangement with? Do you have a partner and what is their financial situation like?

sourcrates

The company likely know the car is in negative equity and so would make a potential loss on any repossession and sale of the vehicle, they are probably hoping you will re-start payments at some point, hence the current "phoney war" you find yourself in.

JFYI, if they did repossess it, and there was a shortfall when it was sold, you would still be liable for that shortfall, but it becomes just another unsecured, non priority debt to repay at whatever you can afford per month, again likely another reason why they have not yet acted, as they will be well aware of this, don`t let them tell you otherwise.

Andyjflet

I'm in the car finance business. Have you tried Motorway, at the moment they are usually showing the best prices. But better to take a small loan to cover the £1000 difference?

Last thing the finance company want to do is chance it at auction, it costs a few quid and rarely a good result for anyone. 

Teaandbiscuits21

ManyWays said:

I know this must feel like your biggest problem, but what other debts do you have, any others that you are still making normal payments to, any you are in a payment arrangement with? Do you have a partner and what is their financial situation like?

Hi i’ve got a few sold to Lowell which I’m paying off (old credit cards). Behind with council tax so paying arrears off at mo. I’ve got two small loans that I’m currently paying off and then two credit cards, up to date with these though.

 Partner works part time had a pretty good credit score but isn’t rolling in money to really help me out with this one and I wouldn’t expect them  to, had the car even before we got together 

Teaandbiscuits21

Andyjflet said:

I'm in the car finance business. Have you tried Motorway, at the moment they are usually showing the best prices. But better to take a small loan to cover the £1000 difference?

Last thing the finance company want to do is chance it at auction, it costs a few quid and rarely a good result for anyone. 

I’ll have a look on that one. The small loan could be an option to cover the rest.

So the thing is I actually do need a car but in a pickle with this one and would pleased to get rid of it now, however paying it off myself doesn’t seem to be an option. What will happen say if I did nothing by august when the 60 month term is up?

id like to take out car finance again as I need a car and this will be the only way as can’t buy outright. Will I find it difficult now? Finance company haven’t put nothing on my credit report as of yet , will they?

ManyWays

Finance company haven’t put nothing on my credit report as of yet , will they?
What credit report are you looking at, that would be very unusual, so you need to check Experian, Equifax and Transunion reports. Your case just seems odd which makes predicting what the lender may do impossible. 

Teaandbiscuits21

ManyWays said:

Finance company haven’t put nothing on my credit report as of yet , will they?
What credit report are you looking at, that would be very unusual, so you need to check Experian, Equifax and Transunion reports. Your case just seems odd which makes predicting what the lender may do impossible. 

Thanks sorry to clarify I’ve checked my report with totally money (not sure which one that is) and the car finance is on there but it says up to date