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@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • dlv13
    • By dlv13 14th Jun 19, 3:40 PM
    • 7Posts
    • 0Thanks
    dlv13
    Failed MOT, voluntary termination and negative equity triple whammy
    • #1
    • 14th Jun 19, 3:40 PM
    Failed MOT, voluntary termination and negative equity triple whammy 14th Jun 19 at 3:40 PM
    Hi

    This is my first post in a while so I hope someone will be able to help please?

    I have a car on finance through Premium Plan. Today it's failed it's MOT and will cost around 600 to fix (I knew there was an issue of around 250 so budgeted for that, but little else.)

    I've notified Premium Plan who are sending me a settlement figure and potentially talking to me about voluntary termination too. I've paid over 60% I believe so this shouldn't be an issue, though I'm 99% sure the car is in negative equity.

    Obviously, the MOT issues are likely to be considered more than wear and tear to them, though the guy at the garage actually thought the car had done pretty well with the original shocks in tact.

    Partner and I expecting a baby in October so we were going to upgrade anyway (as I already have two children and the car is a Fiat Panda!) but obviously there is an issue or two here now. A couple of questions really:

    1) if I've paid over half, does anyone know approximately what sort of thing they'll take into account re: failed MOT in terms of liabilities? Or is it purely based on the issues highlighted in the MOT?

    2) The guy at the garage said he knows of people who've used their failed MOT car as a deposit on another car, does anyone know if that's possible in negative equity? Google isn't giving me a lot of answers.

    I've had a bit of a search and can't see the same issues on the forum but if there is a link to a specific thread I'd be hugely grateful.

    Sorry to ask, feel pretty stupid though there's no way I could have known about the shock absorbers (though I did know there were other problems.)

    Cheers

    D
Page 1
    • motorguy
    • By motorguy 14th Jun 19, 3:55 PM
    • 19,325 Posts
    • 12,019 Thanks
    motorguy
    • #2
    • 14th Jun 19, 3:55 PM
    • #2
    • 14th Jun 19, 3:55 PM
    Hi

    This is my first post in a while so I hope someone will be able to help please?

    I have a car on finance through Premium Plan. Today it's failed it's MOT and will cost around 600 to fix (I knew there was an issue of around 250 so budgeted for that, but little else.)

    I've notified Premium Plan who are sending me a settlement figure and potentially talking to me about voluntary termination too. I've paid over 60% I believe so this shouldn't be an issue, though I'm 99% sure the car is in negative equity.

    Obviously, the MOT issues are likely to be considered more than wear and tear to them, though the guy at the garage actually thought the car had done pretty well with the original shocks in tact.

    Partner and I expecting a baby in October so we were going to upgrade anyway (as I already have two children and the car is a Fiat Panda!) but obviously there is an issue or two here now. A couple of questions really:

    1) if I've paid over half, does anyone know approximately what sort of thing they'll take into account re: failed MOT in terms of liabilities? Or is it purely based on the issues highlighted in the MOT?

    2) The guy at the garage said he knows of people who've used their failed MOT car as a deposit on another car, does anyone know if that's possible in negative equity? Google isn't giving me a lot of answers.

    I've had a bit of a search and can't see the same issues on the forum but if there is a link to a specific thread I'd be hugely grateful.

    Sorry to ask, feel pretty stupid though there's no way I could have known about the shock absorbers (though I did know there were other problems.)

    Cheers

    D
    Originally posted by dlv13
    BVRLA guidelines will tell you what they'll look out for

    https://www.bvrla.co.uk/fleet-services/fair-wear-and-tear.html

    Also things like illegal tyres, scuffed alloys, scratches, dings, incomplete service history will be the obvious stuff. As well as lack of MOT.

    Are you proposing VT'ing it on the basis it needs 600 spent for MOT? Because i think MOTing it and keeping it is going to by far work out cheaper.
    Last edited by motorguy; 14-06-2019 at 4:00 PM.
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • dlv13
    • By dlv13 14th Jun 19, 5:25 PM
    • 7 Posts
    • 0 Thanks
    dlv13
    • #3
    • 14th Jun 19, 5:25 PM
    • #3
    • 14th Jun 19, 5:25 PM
    I think you're probably right. Unfortunately I can't lay my hands on that kind of cash and have nowhere to keep the car off road Sorn either.

    My intention was a personal loan, pay the settlement and then use the car as a part ex. Now, if I can, I'm thinking of doing that but factoring in the 600 MOT to my borrowing (or reducing the cost of the next car by that amount.)

    After doing a little digging, I suspect they'll charge me more than the cost of the MOT so even if I'd stuck with the original plan I probably couldn't have VT'd anyway.

    Thanks for your help though.
    • Noree
    • By Noree 14th Jun 19, 10:20 PM
    • 163 Posts
    • 74 Thanks
    Noree
    • #4
    • 14th Jun 19, 10:20 PM
    • #4
    • 14th Jun 19, 10:20 PM
    May seem blunt, but why would you be driving a car which you know has issues?

    Seems like you anticipated an MOT failure.

    Sorry I couldn’t answer your questions.
    • molerat
    • By molerat 15th Jun 19, 12:28 PM
    • 21,372 Posts
    • 15,630 Thanks
    molerat
    • #5
    • 15th Jun 19, 12:28 PM
    • #5
    • 15th Jun 19, 12:28 PM
    1) You will be charged for the cost of repairing the car - do you honestly think they will charge you less than your local garage.


    2) The car is worth what it is worth, you will need to pay the finance co the balance. The dealer may be able to wrap that up into the new deal so you will be paying that off on top of the new car. To make it affordable you will likely have to extend the length of the deal which will bring you back to the situation you are in now in a few years time.



    As for being on its original shocks, how old is this car ? It looks like you need to stop taking out long finance deals on old cars, they might work on new cars but on older ones you are still having to pay it off when you come into serious repair territory.



    It looks like your best option is to fix what you have.
    Last edited by molerat; 15-06-2019 at 12:48 PM.
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • AdrianC
    • By AdrianC 15th Jun 19, 1:56 PM
    • 24,749 Posts
    • 24,123 Thanks
    AdrianC
    • #6
    • 15th Jun 19, 1:56 PM
    • #6
    • 15th Jun 19, 1:56 PM
    2) The guy at the garage said he knows of people who've used their failed MOT car as a deposit on another car, does anyone know if that's possible in negative equity?
    Originally posted by dlv13
    Of course it is. But you'll basically be borrowing yet more money to pay the already-borrowed money back.

    Given that you are clearly not particularly flush and have an incipient large increase in your other expenses, this sounds like a bloody silly plan to me.
    • Scrapit
    • By Scrapit 15th Jun 19, 8:47 PM
    • 812 Posts
    • 330 Thanks
    Scrapit
    • #7
    • 15th Jun 19, 8:47 PM
    • #7
    • 15th Jun 19, 8:47 PM
    What's it failed on? Can you get cheaper elsewhere?
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

1,795Posts Today

8,126Users online

Martin's Twitter