getting out of car finance.

[samanthajane]

When i was in business with my ex he took my car for the business that was fully paid for and got me another car on finance which the company paid for. ( i have since closed down the company i was a director of and the ex set another business with a different name, but still doing the same type of business)

Now he is saying the company can no longer afford to make the repayments. I haven't used the car in nearly a year as i am in england, my mum has been driving the car and paying for tax, insurance, any bits n bobs that needed to be done, but my ex has continued to make the repayments.

I have said ( even though i dont think i should, because he took my car, fully paid for by me ) that when i am back in ireland i will take over the car repayments. He is already 1 month behind and coming up to 2 so i'm going to have to make those repayments as well.

He recently told me that he phone the finance company ( GE money ) and was told that once he is half way through the repayments ( once the arrears are paid the half way mark will be in june) he can hand the car back.......and thats it. Doesn't have to make anymore payments, no effect of his credit rating ( already in trouble since he's missed payments)

I dont get how this can be in anyway true... i've tried to ring GE money but since the finance is not in my name they wont talk to me or tell me anything.

There is approx €14,000 left outstanding on the finance, the car at todays prices would be lucky to fetch €9,000. I dont see how this can be possible, the finance company would lose money.

Has anyone heard of anything like this, or even done this.

Because i have been out of the country for nearly a year, and because my my ex partners lack of paying the mortgage on time means my once perferct credit rating has now gone down hill, i dont think i could get another car on finance in my own name. I have no free money available to buy another car outright, and to start earning money i have to have a car.

Also will the finance company allow the payments to start coming out of my account, will they allow me time to re-pay the arrears or will they just take the car.

 

[Brendan Burgess]

I would think that the finance company would be delighted to sell you the car for €14k.

Go in and talk to them face to face. Find a manager or supervisor. The last thing they want is yet another car to sell.

You might not be able to take over the loan, but they might issue you with a new loan for the balance.

Brendan

 

[samanthajane]

You'd of thought they would be delighted to sell me the car but apparently not.

I phoned them again and spoke to a manager, cant go in and see them i'm in england at the moment. ( do they actually have an office you can go into, i thought they did everything over the phone )

Anyway they are not willing to give me a loan for €14,000. Only suggestion they made was for me to give the money to the ex and the repayments to still come out of his business account. Refused to discuss about giving extra time to re-pay the arrears or anything else as again the finance is not in my name. So bascially not much help.

Phoned the ex.....he's not interested he wants the car gone and the finance out of his name. Cheeky git if you ask me since i gave him my car that wasn't a banger it was a 04 toyota rav 4 ( which was only 3 years old when i gave it to him) in return for him getting a new car for me on finance.

So i'm at the point let him hand back the car ( there going to take it before he has the chance to hand it back he's behind as it is and he still has to wait till june )

I had another thought of advertising to pay someones repayments on their car for a few months untill i can afford another to buy another one. There has to be people out there that cant sell there cars and are struggling to make the repayments. If the car gets repossessed dont they still have to payback the money. It would only be a help for a few months but it would give that person a bit of breathing room.

Can this be done or is it illegal to do that?

 

[Irish Guru]

Hi,

First thing is not to worry about your credit rating. Before this situation is over we will all be on the register with the credit bureau. There will have to be a new order of things so dont worry about credit ratings. They will be meaningless going forward.
Second if you tell the company that they can repossess the car now and you accept that they will go to court. Given that the car is worth 9K and going to court will cost them the guts of that they will be slow to go down that route. In other words take control of the bank do not let them control you. They will fight in the early stages but will come around to reaching a mutually acceptable agreement. One other thing is that GE Money can be agressive so be ptrepared to dig your heels in and fight them on their terms. In my experience they always capitulate. DO NOT LET THEM GET YOU DOWN, the banks are bullies. Remember that.
Also get legal advice as to your position regarding your ex he still has a legal debt to you regarding teh car and you may be able to get him to take responsibility for the renefotiated amount. You will only succeed in this endeavour if you stick to your guns and play hardball. Thats my view, I hope it helps.

 

[Sylvester3]

That thing about giving the car back after half the payments have been made is something that I used when I lived in the North, so it might be a UK contract thing. I bought a Ford Fiesta in 2000 when I first started working after Uni and handed it back 2 years later after I had made half the agreed payments. My Credit Rating was unaffected and there were no problems whatsoever. I stopped it as I found it difficult to keep paying a third of my then salary every month on a car when I could just as easily use public transport. A careful reading of contract showed me the way out!

 

[callaghanj]

You should be able to return the car at the half way point and have no more money to pay provided the car was not purchased as a business vehicle. Dont get fobbed off and insist on returning the veicle at the half way stage once he's made 5o% of the payments and any late payment fees due.