Finance on a non economic repair

beckersuk

My car failed its MOT, and the repairs required are not financially viable for me. I am in an IVA already and currently signed off work for mental health reasons. I have a 4 year plan with 1 year left on it. In my contract it states I can not scrap or sell the car as I don't actually own it yet. If I choose to hand the car back to the finance company, they will repair the car for resale and bill me for the repairs. No option to do an installment plan with any garage. The car is now SORN and will sit outside the house for the next year essentially rotting, whilst I continue the monthly payments on it, and then will be scrapped anyway. Is there anything I can do to challenge the contract or get some form of help from the finance company. Any advice would be welcome.

fatbelly

Is your car on normal hire purchase? I.e. No balloon payment.

It sounds as if your IVA has been set up to exclude any equity you may have in the car, and to allow you to continue the monthly instalments. If the IVA was paused for say six months, would that allow you to repair the car and get it through an MOT?

Belenus

The car is now SORN and will sit outside the house for the next year

Will it be on your private drive/land or on a public road?

For SORN it needs to be the former.

beckersuk

https://forums.moneysavingexpert.com/discussion/comment/82066045#Comment_82066045

Yes I know that. Im asking about the finance, but thanks for the reply!

beckersuk

UUnfortunately No, the IVA will not allow payment breaks of that length of time. No balloon payment at the end either.

fatbelly

An IVA will allow a break if there is a reason for it. A similar move would be to just stop paying. However there is no point if doing that frees up so little money that it would not pay for the repairs Do you want to get into the detail of what needs doing?

beckersuk

Yes it needs a rear inner drive shaft replacement. 4wd Kia Sportage.

I can only have 3 payment breaks per year, and have already used them up.

https://forums.moneysavingexpert.com/discussion/comment/82066419#Comment_82066419

Mildly_Miffed

There will certainly be an amount to pay to close the finance down now.

But… that's it? A driveshaft? You're going to scrap the car for… that?

Come on, what age, what engine?

fatbelly

Fyi it can take up to a year to terminate an IVA if you stop paying. Your IP doesn't want to do that. And unless you are a homeowner with 30k+ of debt you may well have had better options anyway.

beckersuk

https://forums.moneysavingexpert.com/discussion/comment/82066514#Comment_82066514

Yes its a large bill. ITs an AWD car, so it has 3 driveshafts instead of 1.

beckersuk

https://forums.moneysavingexpert.com/discussion/comment/82066542#Comment_82066542

II'm not going to simply stop paying the IVA, its a legally binding thing and I would be in breach of that, and end up with fines and charges. Im asking about the vehicle finance options, not the IVA or tax or anything else.