Tricky direct debit/car finance situation - advice welcome.

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ivaquestion

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I'm in a bit of an awkward situation, wondering if anyone can see a good solution. (its a bit long... sorry!)

Basically backstory is living with my parents at the moment, both of them but they're getting a divorce and have been going through the whole thing... in the same house. Needless to say it led to some strained relationships, so not getting on too well with my dad. Anyway...

A few years ago they bought a new car (08) for me and my brother, we didn't expect want or demand any car, let alone a new one, but we were delighted.

Fast forward to around November last year, some liquidity trouble hit and he asked if my brother and I would take over the repayments (~€500 p/m between the two of us) so he signed over the direct debt to my account. I had just finished college and was giving grinds so was just able to cover it.

We found out about the half rule and decided to keep paying up until it was half paid off, then hand it back, no trouble. Now my brother and I now both have jobs and it was paid off half last month but my dad says he won't sign the letter to give the car back.

My brother just moved out last week with a friend (since he was expecting to have some free cash without the car), so he won't be using the car and can't afford payments and if I take over payments i'll pretty much be be reset to zero at the end of each month and can't afford to move out.

Now i'm left in the situation that I have direct debits coming out of my account. I've cancelled them at the bank to buy some time, but not yet with the finance company. I don't want to just stop paying and ruin my dad's and my credit ratings and cause loads of hassle, but I might have to since can't keep paying. I was delighted after finding the half rule but he won't sign off on it, usually justifying it with things like "ask your mother, she has plenty of money" or "blame your mother, I wanted to pay for your car".

Can anyone see any way out of this that I might be missing? Thanks!
 
Tricky one - doesn't sound like fun at home so hope things improve.

Just a few questions:

1. Did you sign the car finance agreement or is it all in your Dad's name?
2. Does your Dad know that with half rule he can give back car & owe nothing more?

What I would do is.....and this is just my personal view......talk to your Dad. Explain that you can't afford the car & you want him to return under half rule. Legally, this car finance agreement has nothing to do with you. If he won't listen to reason & return the car, tell him you'll stop paying by x date & his credit rating will be affected.
 
Thanks for that moneyhoney.

I didn't sign the car finance agreement, my dad did which is why he is needed to send the letter about the half rule. I did however sign a direct debit mandate with the company for my account. As i say I've cancelled this with the bank, but not the finance company. Will this go down as me not paying in the eyes of the finance company or my bank?

We've explained the half rule and I'm sure he understands it, we've tried talking to him on numerous occasions, I did what you said and told him i'll stop paying and as would be expected we ger "Oh so you're going to completely screw your father over, what sort of a son yada yada yada."

It might also be relevant to point out his own car is financed with the same company, he hasn't paid in almost a year and says he has an agreement with them. He bought a cheap old car in case they decide to repossess his, but they haven't yet.
 
ivaquestion said:
Thanks for that moneyhoney.

I didn't sign the car finance agreement, my dad did which is why he is needed to send the letter about the half rule. I did however sign a direct debit mandate with the company for my account. As i say I've cancelled this with the bank, but not the finance company. Will this go down as me not paying in the eyes of the finance company or my bank?

We've explained the half rule and I'm sure he understands it, we've tried talking to him on numerous occasions, I did what you said and told him i'll stop paying and as would be expected we ger "Oh so you're going to completely screw your father over, what sort of a son yada yada yada."

It might also be relevant to point out his own car is financed with the same company, he hasn't paid in almost a year and says he has an agreement with them. He bought a cheap old car in case they decide to repossess his, but they haven't yet.
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Sounds to me as if his credit rating is already banjo'ed so I would simply leave things as they are after calmly restating your case to him. He has the agreement with the company not you, so your credit rating should not be affected. You have no obligation to pay the company. There are obviously other family dynamics influencing all this which have the capacity to really complicate what is a very basic and easily resolvable issue.

None of you can afford the car. It can be returned under the half rule without impacting anyone's credit rating. So therefore the onus is on your father to deal with this with a very straightforward letter.

A.
 
Thanks guys, I cancelled it with the company no questions asked so it's off my desk now. Lets see how this goes!
 
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