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OTR
Starting Member
33 Posts |
 Posted - 19 January 2010 : 17:18:12
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Hi all.
First posting on here from me so here goes.
Can anyone tell me if the RO allows me to keep my car {value of £4000} as i need it for work, will the finance then be able to reposess it even though the RO allowed me to keep it, i ask this question as i am going to file for BR but just wondered about this.
many thanks |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 19 January 2010 : 18:15:37
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hi and welcome to the forum
firstly the car would have to be on HP not a Fixed Sum Loan Agreement ... check the paperwork carefully.
if the OR lets you maintain the payments it would only be if there is no equity in the car ie. you owe more than it is worth
if that is the case then it is up to the individual HP company some do some don't
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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OTR
Starting Member
33 Posts |
Posted - 19 January 2010 : 19:13:14
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| Hi chester2005 many thanks for your info, the car is on a fixed sum loan agreement and i am in neg equity on it so i should be ok hopefully. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 19 January 2010 : 19:47:17
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if it is on a fixed sum loan agreement... then the OR will take the car and sell it and give you £2000 to replace it.
on HP the car is a secured debt
on a FSLA the car is yours not the finance Co.
upon BR the car would become the ORs and he would sell it.
I would suggest that you sell the car yourself and replace it with one for £2000 ish use some of the balance for the fees and to live until BR and the balance give to the OR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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OTR
Starting Member
33 Posts |
Posted - 19 January 2010 : 21:05:29
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| Thanks chester2005 but its more complicated than that because the car is financed by 2 different companies, the agreement already mentioned is FSLA but the other one is HP, i have already spoke to the HP company and they are ok with me keeping the car and carry on making the payments, it was financed that way because i had a large amount to refinance from previous vehicle, dealer said that was the only way it could be financed, do you or anyone else know how this will affect things because i cant sell it because of the HP agreement, many thanks for any advise. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 19 January 2010 : 21:49:27
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how much is the vehicle worth outright and how much are the individual finance agreements upon it?
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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OTR
Starting Member
33 Posts |
Posted - 19 January 2010 : 22:31:11
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The car is worth £4000
The FSLA agreement has £10,300 outstanding.
THe HP agreement has £7,000 outstanding. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 19 January 2010 : 23:09:00
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ok , the FSLA is an unsecured debt and will be able to be included in BR
As the acr is worth less than the HP outstanding on it the OR should have no interest in it,
if the HP Co. is happy for you to keep the car and the payments are not too expensive for you to be able to afford (probably mostly if not all , out of your DI) then there is a good chance the OR will not be too bothered with it.
sadly it does depend on the OR they all differ somewhat.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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OTR
Starting Member
33 Posts |
Posted - 20 January 2010 : 05:47:55
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| Thanks Dave, great advice, made things much clearer for me now. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 20 January 2010 : 11:02:15
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Glad to have been able to help
Please post again and let us know how it all went
or with any other questions
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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Car finance
