Car finance

xx sue xx

Hi,

I was wondering if anyone has any information or could help me with the following matter.

I got finance on a car last year , the car was 13,200 and with the interest stood me at 23,000. As of last week i no longer have my car as it is now a write off. I have spoke to my finance company and have found out that whatever i get off the insurance company goes directly to them which is 8,500 and i still have to continue to pay my finance until this is cleared.

Therefore i have no car , and no way of getting another car as im still paying for one i no longer have. I have asked my finance company is der anyway i can continue paying wat i owe and buy a car out of the insurance money only to be told that there is nothing they can do as the only collatoral they had was the car and now thats gone. But why then should i have to pay for somthing i no longer have , just the same way they have no collaterol cause the cars gone. PLease help !!

MarkN

First of all, start a new thread - this one is 3 years old!

You should be able to bring the negative equity over into a new finance agreement on a new loan for a new car but perhaps they won't do it as you owe quite a bit as it is.

Eoin

Moved to its own thread.

xx sue xx

See thats the thing it would be virtually impossible for me to go and apply for more as no finance company would touch me with what i already owe, but is there nothing put in place for when this happens. I mean they told me the only collateral that they had was the car and now its gone, so should that not go both ways ??

helimachoptor

how do you owe so much on the interest?

Eoin

That's seems like a crazy amount of interest you were paying.

Anyway, I wonder would MABS or one of those places be a good place to get advice?

xx sue xx

See i was thinking of going to MABS, but i think they can only help you if you have no income , am i wrong ??

xx sue xx

Betafrog ::

Yeah i got it on HP , but i signed an agreement with them for 4 years to pay back a certain amount each month which i have been doing. i cant understand why they should take the money off the insurance company and expect me to pay back the rest when i no longer have the car.

Gumbo

xx sue xx wrote: »

Betafrog ::

Yeah i got it on HP , but i signed an agreement with them for 4 years to pay back a certain amount each month which i have been doing. i cant understand why they should take the money off the insurance company and expect me to pay back the rest when i no longer have the car.

whatever about the 10k interest.....something wrong there imo.
im sure one of the sales guys can shed some HP info on that one, but in simple terms :

lets say i give you a lend of 100 euro to go out drinking on Friday.
on satuarday you are sobered up, all the drink is gone, but you still owe me 100euro.


just like the HP you signed into, you signed into an agreement to pay x euro per month for 4 years, then you will own a car. but youve have only paid 2 years of this, so you still owe half the money. (just using 2 years as example.)

sorry for your situation though.

knifey_spoonie

Let me guess did you buy it from Autoexchange.

AFAIK With regards to HP your are still liable for the money you signed for on day one regardless of what has happened to the car .

colm_mcm

the payout from the insurance company is offset against what you owe on the car.

Bit late to be hearing this now, but having that much finance on a depreciating asset was a very dangerous move. surely you twigged that the interest rate was off-the-wall?

xx sue xx

Anything over 10,000 you pay 10,000 interest...

But the point is i was in an agreement with them to pay back x amount each monthe for 4 years and i have been doing that n will continue to do so as that was the agreement, but they want the insurance money and for me to continue paying back what i owe out of the remainder. The car was the collateral its gone now so y shud i have to pay for somthing i dnt have, is there no process in place for when this actually happens. I just think its ridiculous that they can do this y not just give me d insurance money n continue with our agreement, wheter i have the car r not i still have to continue to pay them back.

xx sue xx

I did but at the time taught it was a great idea , how wrong was i !!!

colm_mcm

xx sue xx wrote: »

Anything over 10,000 you pay 10,000 interest...

can you explain that to me? was this an agreement with a well known bank? does it not seem odd to you that you pay twice the cars value?

xx sue xx

knifey_spoonie wrote: »

Let me guess did you buy it from Autoexchange.

AFAIK With regards to HP your are still liable for the money you signed for on day one regardless of what has happened to the car .

I am aware of that and i will continue to pay it, but what i cant understand is why can they not give me the money buy a new car and continue to pay for it.

xx sue xx

colm_mcm wrote: »

can you explain that to me? was this an agreement with a well known bank? does it not seem odd to you that you pay twice the cars value?

Well no see what it was is the car was 13,200 and with HP anything over 10,000 and over the years i got it worked out thats how much interest id owe. this was explained to me by my finance company.

colm_mcm

that's roughly 30% APR.

You're paying roughly 475 a month?

payment for this loan this size taken out a few years back should be roughly 325 per month


Best thing to do is ring the finance company and look for a settlement figure, taking the payout from the insurance into account. you may have miscalculated.

xx sue xx

colm_mcm wrote: »

that's roughly 30% APR.

You're paying roughly 475 a month?

payment for this loan this size taken out a few years back should be roughly 325 per month


Best thing to do is ring the finance company and look for a settlement figure, taking the payout from the insurance into account. you may have miscalculated.

Well it works out im paying back just about 4 a month , but the payment was'nt an issue until now cause i feel that theve done me over big time, cause im paying all that money and i have no car.... Like y can they not let the insurance money go to me as apposed to them and il happily continue with my agreement.

colm_mcm

the car is the bank's property, you've destroyed their asset.
unless you have GAP insurance, you're leaving yourself open to this situation.

most people given the choice would spend the insurance cheque and stop paying the HP. thats why the choice isn't there


Do you know does your monthly installment include some payment protection insurance?

Also, have you actually had a confirmed figure of 8,500, or is that your guess as to the cars market value?

It may be worth getting another assessment of the car, if the car could be repaired economically it would make your life a lot easier.

Gumbo

xx sue xx wrote: »

Well it works out im paying back just about 4 a month , but the payment was'nt an issue until now cause i feel that theve done me over big time, cause im paying all that money and i have no car.... Like y can they not let the insurance money go to me as apposed to them and il happily continue with my agreement.

i dont think you fully understand the situation in front of you.

1. you borrowed 10,000 to buy a car.
2. after half the term you still own 5,000.
3. then the car gets wrote off.
4. the car is worth 2,500.
5. insurance pays the finance company 2,500.
6. you now owe the finance company 2,500, not the full amount as you keep saying.

you will continue to pay your payments, but only until the balance from after the insurance payout is cleared.

xx sue xx

colm_mcm wrote: »

the car is the bank's property, you've destroyed their asset.
unless you have GAP insurance, you're leaving yourself open to this situation.

most people given the choice would spend the insurance cheque and stop paying the HP. thats why the choice isn't there


Do you know does your monthly installment include some payment protection insurance?

Also, have you actually had a confirmed figure of 8,500, or is that your guess as to the cars market value?

It may be worth getting another assessment of the car, if the car could be repaired economically it would make your life a lot easier.

Yeah but i just cant understand how unhelpful there being i asked them could i reapply for the money there geting off the insurance company and was told i cannot reapply until i already clear wat i owe. Either way im Fu*ked and there reaping the rewards...

Im not sure if i took out payment protection.

Wats GAP insurance ??

colm_mcm

GAP Insurance

If you don't have it, it's pretty irrelevant.

xx sue xx

kceire wrote: »

i dont think you fully understand the situation in front of you.

1. you borrowed 10,000 to buy a car.
2. after half the term you still own 5,000.
3. then the car gets wrote off.
4. the car is worth 2,500.
5. insurance pays the finance company 2,500.
6. you now owe the finance company 2,500, not the full amount as you keep saying.

you will continue to pay your payments, but only until the balance from after the insurance payout is cleared.

I am aware what i borrowed and how much i owe and that it was an agreement just wanted to know was there somthing i can do, i think i now know theres not.

colm_mcm

you need to check what you actually owe. it's probably not as much as you think. you just need to ring for a definite settlement figure.

xx sue xx

colm_mcm wrote: »

GAP Insurance

If you don't have it, it's pretty irrelevant.

Yeah i don't think i have that but at least i know about it now, i can safely say though i will never touch another finance company again.

Mr Benevolent

OP, what dealer did you buy the car from? And do you know who the finance company is? HP is a no-no with big ticket items, it's insanely expensive. Glad you've learned your lesson.

xx sue xx

Confab wrote: »

OP, what dealer did you buy the car from? And do you know who the finance company is? HP is a no-no with big ticket items, it's insanely expensive. Glad you've learned your lesson.

Ye got the car from Merlin , Finance with ge money and i will never do it again.

Biro

What type of car is it and how badly damaged was it? Who are you insured with? Is the €8,500 their first offer?

rotinaj

The origianl price was 13500 and from what I can see your payin 20%APR.

So lets break that down

After 1 year of payments you should have a balance of €12000

After the money you insurance company paid to GE your new balance should be €3500

Paying 400pm @20% on 3500 it should be paid off in May 2010

Ring GE money and confirm this.

xx sue xx

JimBob85 wrote: »

The origianl price was 13500 and from what I can see your payin 20%APR.

So lets break that down

After 1 year of payments you should have a balance of €12000

After the money you insurance company paid to GE your new balance should be €3500

Paying 400pm @20% on 3500 it should be paid off in May 2010

Ring GE money and confirm this.

I actually still owe nearly 16,000 from what i was told on the phone earlier today which puzzled me a bit but there you go.

rotinaj

xx sue xx wrote: »

I actually still owe nearly 16,000 from what i was told on the phone earlier today which puzzled me a bit but there you go.

16000!! HAs the insurance company paid the money to GE yet?

Biro

Get a statement from them showing the amount borrowed, the amount you paid back month by month, and the interest they added on. You're entitled to that. Take it to citizens informaion or anyone who'll be able to make sure they haven't overcharged.
Then ring the insurance company and tell them €8,500 isn't enough of an offer. What car was it? Mileage, condition, year, make and model. We'll see what a good offer is, might help your situation a bit.

MagicMarker

What on earth posses someone to buy a car knowing they'll pay almost twice it's worth?!?

I have no advice OP, other than don't ever get a credit card.

xx sue xx

JimBob85 wrote: »

16000!! HAs the insurance company paid the money to GE yet?

No not yet , they offered me 8500 but i told them i could find the same car worth more.

xx sue xx

Biro wrote: »

Get a statement from them showing the amount borrowed, the amount you paid back month by month, and the interest they added on. You're entitled to that. Take it to citizens informaion or anyone who'll be able to make sure they haven't overcharged.
Then ring the insurance company and tell them €8,500 isn't enough of an offer. What car was it? Mileage, condition, year, make and model. We'll see what a good offer is, might help your situation a bit.

I have requested all that today, so hopefully i get it out soon enough.It was an 06 opel vectra 1.6 with 62,000km in mint condition.

Eoin

Confab wrote: »

HP is a no-no with big ticket items, it's insanely expensive. Glad you've learned your lesson.

Actually, it's not always. I wouldn't want a credit card with the interest rate the OP is paying, let alone a car loan. It just sounds like this deal in particular is a rip off.

HP can be OK value if you plan to keep your car for the duration of the finance term. I am pretty sure it was cheaper than a normal car loan when I got mine, but that's going back 8 years or so.

xx sue xx

MagicMarker wrote: »

What on earth posses someone to buy a car knowing they'll pay almost twice it's worth?!?

I have no advice OP, other than don't ever get a credit card.

Duly noted !!

rotinaj

Biro wrote: »

Get a statement from them showing the amount borrowed, the amount you paid back month by month, and the interest they added on. You're entitled to that. Take it to citizens informaion or anyone who'll be able to make sure they haven't overcharged.
Then ring the insurance company and tell them €8,500 isn't enough of an offer. What car was it? Mileage, condition, year, make and model. We'll see what a good offer is, might help your situation a bit.

Actually this is your best bet.

Ring GE money, request a statment and ask them for a letter confirming how much you owe.

Ring your insurance company and request a letter confirming that they paid €8500 to GE money

Take these items along with your original contract with GE to your local Citizens Info or if you can afford it your silicitor.

They would be able to advise you a lot better than us

Biro

xx sue xx wrote: »

I have requested all that today, so hopefully i get it out soon enough.It was an 06 opel vectra 1.6 with 62,000km in mint condition.

Hmmm... it'll be hard to get more than €8,500 so. Maybe ring an Opel dealer and ask them what the book value on your exact car is, the model and the version with that mileage on it and see. If they say it's more, then you can use that against the insurance company telling them that they have to give you book value. Even if that only gets you another €500 it's over a month less of a repayment.
Definitely get the statement and get advice from someone way more knowledgeable in financial matters than a bunch of petrol heads. You may work out a deal that's much sweeter than the stink situation you're currently in.
Finally, come back here and let us know the story, and we'll see if we can find a nice cheap car to tide you over till you're back on your financial feet.

Actually, one final thing - how badly damaged is the car? Sometimes insurance companies are a bit too quick to write off a car. It's better for you in this situation to have it repaired if at all possible.

xx sue xx

Biro wrote: »

Hmmm... it'll be hard to get more than €8,500 so. Maybe ring an Opel dealer and ask them what the book value on your exact car is, the model and the version with that mileage on it and see. If they say it's more, then you can use that against the insurance company telling them that they have to give you book value. Even if that only gets you another €500 it's over a month less of a repayment.
Definitely get the statement and get advice from someone way more knowledgeable in financial matters than a bunch of petrol heads. You may work out a deal that's much sweeter than the stink situation you're currently in.
Finally, come back here and let us know the story, and we'll see if we can find a nice cheap car to tide you over till you're back on your financial feet.

Actually, one final thing - how badly damaged is the car? Sometimes insurance companies are a bit too quick to write off a car. It's better for you in this situation to have it repaired if at all possible.

Well i have been to a few dealers and got prices off the internet which let me tell you ders a big difference ranging from between 10,500 - 17500 i faxed them all over today so waiting to see what they come back with now, but i am defo gonna get all the statements and have someone look into it cause it doesn sounf right to me....

I need a car asap have been looking around but not much i can get with 3000 , but will keep you all posted.

Biro

xx sue xx wrote: »

Well i have been to a few dealers and got prices off the internet which let me tell you ders a big difference ranging from between 10,500 - 17500 i faxed them all over today so waiting to see what they come back with now, but i am defo gonna get all the statements and have someone look into it cause it doesn sounf right to me....

I need a car asap have been looking around but not much i can get with 3000 , but will keep you all posted.

The book value is the figure you need though, that's what the insurance companies go by.
You'll get plenty for €3,000, you just need to be prepared to ignore the year of the car and also it'll help if you can increase the engine size.
Good luck with it - remember - a lesson bought is a lesson taught!

Eoin

I'm sure there are plenty of decent cars for 3000. In fact, I'm sure there are plenty of really nice cars for 3000. Don't go and stretch your budget for the sake of the plate - look what happened last time.

xx sue xx

Biro wrote: »

The book value is the figure you need though, that's what the insurance companies go by.
You'll get plenty for €3,000, you just need to be prepared to ignore the year of the car and also it'll help if you can increase the engine size.
Good luck with it - remember - a lesson bought is a lesson taught!

Oh believe me lesson learned.

xx sue xx

eoin wrote: »

I'm sure there are plenty of decent cars for 3000. In fact, I'm sure there are plenty of really nice cars for 3000. Don't go and stretch your budget for the sake of the plate - look what happened last time.

I know but i would lik a nice reliable car because i wnt be getting finance again

Biro

Here's a couple of examples of cars for your new budget after a quick search (with a bit of haggling!) :
http://www.carzone.ie/search/BMW/3-Series/CREAM-LE/200840190225913/advert?channel=CARS

http://www.carzone.ie/search/Honda/Accord/1.8SE-V-/200928194544764/advert?channel=CARS

MagicMarker

xx sue xx wrote: »

I know but i would lik a nice reliable car because i wnt be getting finance again

In my years of driving I pass way more new cars broken down on the road than I have cars worth < 3000.

Biro

xx sue xx wrote: »

I know but i would lik a nice reliable car because i wnt be getting finance again

An Accord is about as reliable as it's possible to get.

xx sue xx

Biro wrote: »

Here's a couple of examples of cars for your new budget after a quick search (with a bit of haggling!) :
http://www.carzone.ie/search/BMW/3-Series/CREAM-LE/200840190225913/advert?channel=CARS

http://www.carzone.ie/search/Honda/Accord/1.8SE-V-/200928194544764/advert?channel=CARS

Thanks for taking the time to look much appreciated !!!

Biro

xx sue xx wrote: »

Thanks for taking the time to look much appreciated !!!

That's what we like doing! Here's another example :
http://www.carzone.ie/search/Ford/Mondeo/1.6i-LX-/200927194493619/advert?channel=CARS

It's something unwanted and a little neglected but mechanically fresh and sound like that is what you want, that could be a dog, but it also could be just a never washed car owned by someone who didn't drive it much, all it might need is a valet, 4 hub-caps and a good compounding on the paintwork.

xx sue xx

Biro wrote: »

That's what we like doing! Here's another example :
http://www.carzone.ie/search/Ford/Mondeo/1.6i-LX-/200927194493619/advert?channel=CARS

It's something unwanted and a little neglected but mechanically fresh and sound like that is what you want, that could be a dog, but it also could be just a never washed car owned by someone who didn't drive it much, all it might need is a valet, 4 hub-caps and a good compounding on the paintwork.

Thats a nice car, well worth it nice set of wheels and il be flying around ha thatnx again

Jonty

OP, did you ever "roll over" finance from a previous car?