car finance

[turner0121]

i had a car on finance which was stolen , and i had the settlement from the insurance, but i just bought another car and didn't settle the finance. I am struggling to pay the finance, what happens if i do not pay ? can i get in to trouble with the law or something (but i will send smaller payments) i will eventually pay it off but not at the rate it is now. Please help me

[Eejit]

you could try and make an offer of smaller payments. Most would accept as it is better than nothing. But I think a finance agreement may be like a contract so if you don't pay they will probably take you to court.

[Loosehead]

Yes make them an offer of smaller payements, tell them about your current curcumstances, generally lenders will help if you consult them. Do not do the ostrich routine, they will definately pursue, for recovery of the debt and possibly for compensation due to breach of the original agreement.

[alvin100]

The more you ignore it the more its going to cost you, they will pursue you for late or non payment. Even if you get them to agree to accept smaller payments they will probably hammer you for interest. You should have settled the finance (If you could) and then refinanced for another car.

The most important thing is to pray that the scumbag that stole your car crashed it into a ditch and died a horrible slow death.

[Mrs_Pegasus]

Normally when you claim, they do ask if the vehicle is on finance. I would carefully check your agreement with the finance company, you may find you are in a little more trouble then you think! I do believe that if the vehicle is unrecoverable you are liable to settle the finance immediately.
Remember that non-payment would normally lead to the vehicle being repossessed. You no longer have the vehicle so I would be surprised if the finance company would be too impressed!

[Oneeyedvic]

Sounds to me like you actually have a loan agreement as opposed to a HP agreement. If it was a Hire Purcahse, it would be registered on HPI - and the insurance company would have settled the finance company before giving you anything extra.

You can easily check this by looking at your original document - it will either have Loan Agreement or Hire Purchase agreement written on the top of it.

On the basis that it is a loan, the car is pretty much a red herring - it is a straight loan, same as if you went into a bank and asked for a loan there.