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Need help

4 replies

birchykel · 19/04/2014 21:19

Not sure if this is the correct place to post but my mum needs som help. My dad is going to pass away in a few months we are all devastated as we only found out he had lung and liver cancer last month. He can't drive, so needs to send his car back to the garage where he bought it on finance.
The finance company told me that the loan is against my dad and not the car so we can sell the car privately to pay off the loan. (But it's 15,000) dad only got it two months ago before we knew he was poorly.
The car company said they will buy it back but for trade price and my mum would need to pay the shortfall in full which she can't do. The car company said its because they can't sell the car again while there's finance on it.....but like I said the finance company told me the loan is against my dad and not the car so does this mean if the car company buy it back and there's a shortfall that my mum could pay it off monthly?
Hope this makes sense?

OP posts:
MiconiumHappens · 19/04/2014 23:39

Sorry not much help here so posting to give it a bump.

Would be a very good idea to see CAB after the BH don't pay anything until then.

But I'm sure a poster in the know will be along soon.

birchykel · 20/04/2014 03:50

Thanks appreciate that

OP posts:
Rockchick1984 · 21/04/2014 00:01

Sorry to hear about your dad Thanks

You need to establish if the car finance is a loan, or a hire purchase agreement. It will be somewhere on the paperwork, or just ring the finance company and ask them. This will determine the next actions for your family to take.

If it's HP then the finance has to be repaid for the car to be sold. If it's a personal loan then it's exactly the same as if he'd taken a loan with the bank, it's not actually linked to the car in any way so the car can be sold, then the money from it can either be paid to reduce the balance on the loan or can just keep making the payments.

Once your father passes away, any debts from part of his estate so his savings, life insurance etc would be used to repay them. If he doesn't have these, then the debts would not be passed on to your mum unless the debts were in joint names. If any debts were just in your dad's name, your mum won't have to carry on making payments.

Hope that helps a bit!

birchykel · 23/04/2014 12:22

Thank you rockchick yes it has helped a lot appreciate it.
Xx

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