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    • theoldgillette
    • By theoldgillette 10th Nov 18, 8:19 PM
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    theoldgillette
    New car replacement cover and a PCP
    • #1
    • 10th Nov 18, 8:19 PM
    New car replacement cover and a PCP 10th Nov 18 at 8:19 PM
    We recently had our 11 month old car stolen. We have new car replacement cover with our insurance. The insurance company are saying they would replace the car with a new one except the finance company won’t allow it. Instead they will settle the finance leaving us with little or nothing. Anyone experienced this? Is there any point in challenging the finance company?
Page 1
    • Tarambor
    • By Tarambor 10th Nov 18, 8:30 PM
    • 3,775 Posts
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    Tarambor
    • #2
    • 10th Nov 18, 8:30 PM
    • #2
    • 10th Nov 18, 8:30 PM
    The finance was secured on that individual vehicle and it belonged to them which is why the finance company need to be paid out first. Even if the insurance company paid you out in cash you would need to repay the finance company the settlement amount because the loan will now be due in full as the car it was secured on is a total loss.

    In short you're in no different position the insurance company paying off the finance than you would be if you were compensated in the traditional manner.
    • motorguy
    • By motorguy 10th Nov 18, 8:31 PM
    • 17,837 Posts
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    motorguy
    • #3
    • 10th Nov 18, 8:31 PM
    • #3
    • 10th Nov 18, 8:31 PM
    The finance was secured on that individual vehicle and it belonged to them which is why the finance company need to be paid out first. Even if the insurance company paid you out in cash you would need to repay the finance company the settlement amount because the loan will now be due in full as the car it was secured on is a total loss.
    Originally posted by Tarambor
    Yup. Totally it.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • theoldgillette
    • By theoldgillette 10th Nov 18, 8:38 PM
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    theoldgillette
    • #4
    • 10th Nov 18, 8:38 PM
    • #4
    • 10th Nov 18, 8:38 PM
    I understand what you are saying but the insurance would replace the car with the same make and model - why can’t we just continue the finance agreement on the replacement car? Or even settle the agreement ourselves and take the replacement car?
    • motorguy
    • By motorguy 10th Nov 18, 8:46 PM
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    motorguy
    • #5
    • 10th Nov 18, 8:46 PM
    • #5
    • 10th Nov 18, 8:46 PM
    I understand what you are saying but the insurance would replace the car with the same make and model - why can’t we just continue the finance agreement on the replacement car? Or even settle the agreement ourselves and take the replacement car?
    Originally posted by theoldgillette
    Because the finance is on that specific car, which no longer exists.

    I would have thought you could ring right now and settle the finance outright, but they may not even let you do that, depending on the terms you signed up to.

    The finance company will be very jumpy about this currently - their car no longer exists as a viable asset and you owe them a lot of money. They will want that rectified as cleanly as possible.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • theoldgillette
    • By theoldgillette 10th Nov 18, 8:50 PM
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    theoldgillette
    • #6
    • 10th Nov 18, 8:50 PM
    • #6
    • 10th Nov 18, 8:50 PM
    Ok thanks. I guess we can ask if they’d accept settlement from us rather than the insurance company but I’m guessing not.
    The insurance company implied that some finance companies do allow new car replacement so it’s veey disappointing to be with one that doesn’t
    • Mercdriver
    • By Mercdriver 11th Nov 18, 1:34 AM
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    Mercdriver
    • #7
    • 11th Nov 18, 1:34 AM
    • #7
    • 11th Nov 18, 1:34 AM
    This situation can be very unfair. My nephew had his car written off through no fault of his own. He was in the same situation as the OP, and then found when he went to get another car on finance from the same finance house, he was declined on the credit check, even though he was actually in a better financial position than before. The finance house had changed some of their parameters.
    • motorguy
    • By motorguy 11th Nov 18, 9:13 AM
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    motorguy
    • #8
    • 11th Nov 18, 9:13 AM
    • #8
    • 11th Nov 18, 9:13 AM
    Ok thanks. I guess we can ask if they’d accept settlement from us rather than the insurance company but I’m guessing not.
    The insurance company implied that some finance companies do allow new car replacement so it’s veey disappointing to be with one that doesn’t
    Originally posted by theoldgillette
    Yes would be worth asking the finance company if you can clear it yourselves if that gets you in to a brand new car from the insurance company for the price of the settlement figure on the used car.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • neilmcl
    • By neilmcl 11th Nov 18, 10:29 AM
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    neilmcl
    • #9
    • 11th Nov 18, 10:29 AM
    • #9
    • 11th Nov 18, 10:29 AM
    I wonder what happens if you have GAP replacement vehicle cover in this scenario. Normally you'd get the additional funds to get a brand new, replacement vehicle, or the choice to settle the finance yourself and pocket the difference. Presumably in this case the GAP wouldn't pay out if the finance is settled fully by your insurer.
    • Tarambor
    • By Tarambor 11th Nov 18, 10:31 AM
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    Tarambor
    Yes would be worth asking the finance company if you can clear it yourselves if that gets you in to a brand new car from the insurance company for the price of the settlement figure on the used car.
    Originally posted by motorguy
    The OP doesn't have the money to pay it and they'd need to find a loan to cover that which isn't a given because until the finance on the car they no longer have it will appear on a credit check and limit the amount they can borrow and the rate offered.
    • motorguy
    • By motorguy 11th Nov 18, 10:41 AM
    • 17,837 Posts
    • 10,876 Thanks
    motorguy
    The OP doesn't have the money to pay it and they'd need to find a loan to cover that which isn't a given because until the finance on the car they no longer have it will appear on a credit check and limit the amount they can borrow and the rate offered.
    Originally posted by Tarambor
    The O/P has said twice now settling the finance themselves was an option.

    "Or even settle the agreement ourselves and take the replacement car?"

    "we can ask if they’d accept settlement from us rather than the insurance company"

    Even IF they dont have the hard cash at hand / to borrow they could try for a cheap loan. Loads about. Could be worth while checking availability in their circumstances.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • theoldgillette
    • By theoldgillette 12th Nov 18, 11:50 AM
    • 8 Posts
    • 0 Thanks
    theoldgillette
    Thanks all. We do have the money to pay off the finance ourselves but I don’t think it’ll be allowed. Unfortunately we do not have gap insurance so we’ll lose out on our deposit plus the diesel scrappage scheme we benefitted from. A big loss for us but you live and learn
    • Tarambor
    • By Tarambor 12th Nov 18, 4:06 PM
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    Tarambor
    Thanks all. We do have the money to pay off the finance ourselves but I don’t think it’ll be allowed.
    Originally posted by theoldgillette
    Sorry I thought by paying it off yourselves you were intending doing it on finance. If you have the money to pay it off yourselves, including the balloon payment, you absolutely have the right to do it under the Consumer Credit Act and the only thing they can do is add 56 days interest. Contact them and ask them for a settlement figure.
    • neilmcl
    • By neilmcl 12th Nov 18, 4:16 PM
    • 11,975 Posts
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    neilmcl
    As above, settle the finance yourself then get your insurer to give you a replacement car.
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