Page 1 of 1
Posted: Mon Jun 02, 2008 11:22 am
by lou
If the company repossess the car does that mean I wouldn't owe any money to them? or does the full debt stand?
Posted: Mon Jun 02, 2008 11:29 am
by chris.g
They will sell the car, usually at auction and you will be liable for any shortfall in the finance. You may be able to hand the car back, depending on how much you have paid. You will need to read through the credit agreement, it's usually when you have equity in the car,
Posted: Mon Jun 02, 2008 11:35 am
by Oliver
Hi,
If the car is subject to an HP agreement and the vehicle is recovered by the finance company, they will issue you with a final demand of any outstanding charges for recovery and outstanding amounts left unpaid, if you are proposing and IVA it is better to anticipate the shortfall and include this within the proposal. i.e. outstanding HP £5000 + £250 charges = £5250 estimated resale of vehicle £3000, anticipated debt for IVA is £2500.