motor vehicle finance

[alankeith27]

I bought my bike a year ago for �3500 on finance and have written it off.

The insurance company are being quite fair and paying out �3450 which is great news.

I want to use the payout to buy another bike which is up for sale at �3500.

Can I do this?

My motivation is that the bike was financed with a high interest company for three years. I have paid one year with two years to go.

If I have to re-finance for the new bike, it'll likely be the same amount of payments for another three years instead of two.

Thats a saving to me of over �1000!

[Ethel]

I can see your logic, but won't the insurance company settle your finance - if it wasn't a straight forward loan, then that is usually the way it is done.

If it is a standard loan there should be no problem.

[bushbaby_de]

it depends on if the finance was a personal loan or a hire purchase loan - if it was a personal loan there is no problem but if it was a hire purchase type loan then it is attached to the particular item you bought it with and will have to be paid off seeing as the bike it a write off. If it is a special finance deal from the dealer it is more likely to be a hire purchase agreement but they won't necessarily have told you this - it was only when we sold our last car that we found out it was HP and not a personal loan!! You'll have to check the paperwork from the original finance agreement to find out what the situation is.