Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Web2018
    • By Web2018 14th Sep 18, 2:20 PM
    • 7Posts
    • 0Thanks
    Web2018
    Hire purchase car on limited company name repossessed
    • #1
    • 14th Sep 18, 2:20 PM
    Hire purchase car on limited company name repossessed 14th Sep 18 at 2:20 PM
    Hi,

    Hope you're well.

    I had a car finance in my limited company name back in September 2016.

    Purchase price was £26000. I paid £14000 cash and arranged for £12000 finance based on £400 repayment every month.

    Recently I had problem with work and ended up in 3 months arrears.

    This morning finance company repossessed my car without serving legal notice or court order.

    When challenged I was told it was unregulated credit agreement and they can legally take car without court order. They said either I need to pay the settlement figure which is £9000 or they will sell the car in auction.

    The market value of the car us £20000.

    Is there anything can be done to get the car back without paying the settlement figure? Or time to sell car privately so I can sell it on market value??

    I had my personal belongings as well as prams for the children in the car.

    Kind regards
Page 1
    • neilmcl
    • By neilmcl 14th Sep 18, 2:53 PM
    • 11,619 Posts
    • 8,403 Thanks
    neilmcl
    • #2
    • 14th Sep 18, 2:53 PM
    • #2
    • 14th Sep 18, 2:53 PM
    Hi,

    Hope you're well.

    I had a car finance in my limited company name back in September 2016.

    Purchase price was £26000. I paid £14000 cash and arranged for £12000 finance based on £400 repayment every month.

    Recently I had problem with work and ended up in 3 months arrears.

    This morning finance company repossessed my car without serving legal notice or court order.

    When challenged I was told it was unregulated credit agreement and they can legally take car without court order. They said either I need to pay the settlement figure which is £9000 or they will sell the car in auction.

    The market value of the car us £20000.

    Is there anything can be done to get the car back without paying the settlement figure? Or time to sell car privately so I can sell it on market value??

    I had my personal belongings as well as prams for the children in the car.

    Kind regards
    Originally posted by Web2018
    There's nothing you can do, the car belongs to them. The car will be sold, the finance will be paid along with all fees and you'll be entitled to whatever's left over.

    The finance co. must however make available your private property that was in the car.
    • Web2018
    • By Web2018 14th Sep 18, 4:56 PM
    • 7 Posts
    • 0 Thanks
    Web2018
    • #3
    • 14th Sep 18, 4:56 PM
    • #3
    • 14th Sep 18, 4:56 PM
    Will they pay me whatever is left over? Market value of the car is is even if £20000 finance is only left 9000.

    How can I make sure they give me back the additional amount and don't just sell it for 9000.
    • neilmcl
    • By neilmcl 14th Sep 18, 5:08 PM
    • 11,619 Posts
    • 8,403 Thanks
    neilmcl
    • #4
    • 14th Sep 18, 5:08 PM
    • #4
    • 14th Sep 18, 5:08 PM
    What car and how old is it?

    Using some rough figures based on what the settlement is I'm guessing it's a year old or so. I doubt it's worth anywhere near £20,000 and it certainly wont get any close to that value at auction.

    You need to speak to the finance co to see if you'd be due anything once sold.
    Last edited by neilmcl; 14-09-2018 at 5:13 PM.
    • photome
    • By photome 14th Sep 18, 5:12 PM
    • 13,480 Posts
    • 8,993 Thanks
    photome
    • #5
    • 14th Sep 18, 5:12 PM
    • #5
    • 14th Sep 18, 5:12 PM
    What car and how old is it. Using some rough figures based on what the settlement is I'm guessing it's a year old or so. I doubt it's worth anywhere near £20,000 and it certainly wont get any close to that vai auction.
    Originally posted by neilmcl

    Guessing its 2 years old as bought in 2016 for £26000, I also doubt its worth anything like £20000
    • lincroft1710
    • By lincroft1710 14th Sep 18, 5:13 PM
    • 11,017 Posts
    • 9,350 Thanks
    lincroft1710
    • #6
    • 14th Sep 18, 5:13 PM
    • #6
    • 14th Sep 18, 5:13 PM
    If market value is £20K, selling the car at auction will realise a lot, lot less. After the finance is paid off, the auction costs, the repossession costs, admin costs etc, you should receive the balance
    • LilElvis
    • By LilElvis 14th Sep 18, 5:17 PM
    • 3,823 Posts
    • 10,360 Thanks
    LilElvis
    • #7
    • 14th Sep 18, 5:17 PM
    • #7
    • 14th Sep 18, 5:17 PM
    What car and how old is it?

    Using some rough figures based on what the settlement is I'm guessing it's a year old or so. I doubt it's worth anywhere near £20,000 and it certainly wont get any close to that value at auction.

    You need to speak to the finance co to see if you'd be due anything once sold.
    Originally posted by neilmcl
    OP says it was purchased September 2016, so two years old. I can only surmise that it wasn't purchased new as it would have depreciated by more than £6000 in two years.
    • Web2018
    • By Web2018 14th Sep 18, 5:27 PM
    • 7 Posts
    • 0 Thanks
    Web2018
    • #8
    • 14th Sep 18, 5:27 PM
    • #8
    • 14th Sep 18, 5:27 PM
    It is Mercedes ML 350 2013. When I bought the car mileage was 43000, only done about 7000 in 2 years and is in excellent condition.

    Car valuation websites still value it around 17000.
    • photome
    • By photome 14th Sep 18, 5:37 PM
    • 13,480 Posts
    • 8,993 Thanks
    photome
    • #9
    • 14th Sep 18, 5:37 PM
    • #9
    • 14th Sep 18, 5:37 PM
    It is Mercedes ML 350 2013. When I bought the car mileage was 43000, only done about 7000 in 2 years and is in excellent condition.

    Car valuation websites still value it around 17000.
    Originally posted by Web2018

    Why do you think yours is worth 20000 then


    as has been said after auction fees its likely to much much less than that
    • neilmcl
    • By neilmcl 14th Sep 18, 7:53 PM
    • 11,619 Posts
    • 8,403 Thanks
    neilmcl
    It is Mercedes ML 350 2013. When I bought the car mileage was 43000, only done about 7000 in 2 years and is in excellent condition.

    Car valuation websites still value it around 17000.
    Originally posted by Web2018
    £17,000 isn't £20,000, which websites are these? Try doing a valuation on webuyanycar.com and you'll get closer to it's true value. Remember it's the car's actual value to trade, not it's retail value that you should be looking at.
    • Web2018
    • By Web2018 14th Sep 18, 8:34 PM
    • 7 Posts
    • 0 Thanks
    Web2018
    Webuyanycar.com quoted £17500
    • Web2018
    • By Web2018 14th Sep 18, 8:38 PM
    • 7 Posts
    • 0 Thanks
    Web2018
    Guys, issue here is not the value of my car. What I am trying to get is how I get either my car back or the money back from auction proceedings.
    • sheramber
    • By sheramber 14th Sep 18, 9:06 PM
    • 5,240 Posts
    • 3,903 Thanks
    sheramber
    You get the car back by paying them the settlement figure they have asked for.

    You can ask them for any excess left from the auction price less their expenses. At an auction the car will be sold to the highest bidder, which may be for a lot less than the market value as it is sold with no warranty and it depends on how many people bid for it.

    You cannot ensure they do not sell it for a low figure. The car belongs to them.
    • photome
    • By photome 14th Sep 18, 10:01 PM
    • 13,480 Posts
    • 8,993 Thanks
    photome
    Guys, issue here is not the value of my car. What I am trying to get is how I get either my car back or the money back from auction proceedings.
    Originally posted by Web2018
    You answered your own question in your OP.

    Pay them £9000

    If it go s to auction there may not be anything to come back
    • Gavin83
    • By Gavin83 14th Sep 18, 10:20 PM
    • 5,316 Posts
    • 8,730 Thanks
    Gavin83
    Guys, issue here is not the value of my car. What I am trying to get is how I get either my car back or the money back from auction proceedings.
    Originally posted by Web2018
    As others have said if you want the car back pay the settlement figure.

    You can't determine what they'll sell the car for. They'll auction it, likely with no reserve price and sell it to the highest bidder. You'll be entitled to whatever it makes, once the finance and fees are settled but in all honesty, given the value you've provided this is likely to be very little. It's possible it may not even cover these costs and they'll chase you for the remainder.
    • dentedporsche
    • By dentedporsche 15th Sep 18, 7:49 AM
    • 145 Posts
    • 53 Thanks
    dentedporsche
    You won’t see any money back after auction. More likely you’ll still owe money on it.

    You need to pay the £9000, As previous posts have advised.
    How you achieve that depends on your circumstances.

    Borrow it, from a bank or rich relative. Then sell the car to repay the loan.

    If you can’t do that, see if you can find a buyer that would take risk of clearing the finance and paying you a smaller amount.
    You won’t get webuyanycar to do that though, you’d need to find a private investor.

    If you do nothing and let it go to auction, you’ll likely end up with a debt and no car.
    Better to end up with no debt, no car and couple of thousand in the bank.
    Last edited by dentedporsche; 15-09-2018 at 7:55 AM. Reason: Add credit
    • Nnenne1
    • By Nnenne1 15th Sep 18, 8:30 AM
    • 13 Posts
    • 7 Thanks
    Nnenne1
    Where about scare you? Iíll be interested in buying it.
    • JJ Egan
    • By JJ Egan 15th Sep 18, 10:19 AM
    • 10,960 Posts
    • 4,701 Thanks
    JJ Egan
    £3 grand behind bottom book .
    • Web2018
    • By Web2018 15th Sep 18, 4:10 PM
    • 7 Posts
    • 0 Thanks
    Web2018
    Thanks. Makes sense. I will contact the finance company on Monday. Hope they agree to accept the settlement figure and release the car.
    • LilElvis
    • By LilElvis 15th Sep 18, 4:22 PM
    • 3,823 Posts
    • 10,360 Thanks
    LilElvis
    Thanks. Makes sense. I will contact the finance company on Monday. Hope they agree to accept the settlement figure and release the car.
    Originally posted by Web2018
    They're going to be wanting some of their costs covered too - repo'ing the car and storing it will come at a price.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

261Posts Today

2,016Users online

Martin's Twitter