car finance

[gerry999]

i have nearly paid out a car loan with black horse,i have little left to pay but cant,ive told them to pick it up but they havent,they keep on adding charges every month,the car loan i think ive more than paid what the car is worth what are my options?

[boxtops]

I think you have to finish paying off the loan irrespective of the actual value of the car now. Bit like the mortgage - if you are in negative equity you still have to pay what you borrowed.

[redcrx]

if its just a car loan then yes you have to pay it all.

The longer you ignore it the more the charges will be and youll end up with court judgements against you

[gerry999]

they told us they would reposses and they havent they jus keep adding on charges even tho they know we cant pay

[redcrx]

even if they repossess it, you do realise that they will send it to auction and if it doesnt get enough to pay what you owe then you still owe the rest.

Have you not got payment protection that may cover it?

have you tried to sell it and clear the funds yourselves?

[gerry999]

didnt think we could sell it with money owing

[redcrx]

often you can as long as the funds are paid straight to the finance company.

ask them directly if you can do that.

[Gmcd01]

Legally you can't sell the car until it's paid for entirely, but in practice, as redcrx says, as long as the finance company get the money, they're unlikely to know/care. The only issue would be if the car sale fails to cover the value of the loan and charges, and then if the financiers were to repossess the vehicle.