What happens if you can't afford the finance and car is lower value?

[EddScott]

A friend is going through a messy divorce and has an 05 WRX Impreza.

She owes about £8K on finance on the car and needs to sell it as soon as possible. Knowing my love for scoobs she's offered it to me but most I'll give her is £5K (needs major + belt and history has been lost) so unless she finds a way to pay the finance off first I can't buy it.

If she went to the finance company and said she can't pay anymore will they just take the car away? Will they take her to court?

If the finance company will just take the car off her shes better off doing that but if they'll take her to court and punish her financially shes better off using 2 or 3 cards to pay the finance company (if they allow credit card payments) and once the car is in her name I'll buy it from her. Better to service a £3K debt on 0% than an £8K debt on 8%.

However, we need to establish what will happen if she just stops paying.


(Please no why did she do it in the first place remarks, its clearly a poor deal)

 

[EddScott]

Normally if she had paid 50% she could hand the car back with you can't do this with no service history.

Really?

That seems a bit off. They let you buy the car but then if its got no history they won't take it off you - having paid 50%. I don't know what history the car had when she bought it.

Its with Black Horse Finance anyway. The car was £10K and shes had it about 2 years. I've told her to speak the Black Horse and ask them what they will do if she just stops paying and/or whether they'll take credit card payments. She has a couple of cards which she can max to £8K but I think her rating is going down the pan as hubby has buggered off back to NZ and left her with all the debts.

 

[EddScott]

Well not really,

What I mean is that the car should have all those details in the first place. If the finance company demands those documents if you stop paying they should demand them when you purchase the car.

If thats not the case, then I guess its the finance company saying more fool you for buying a car with no history?

There is a stamped service book although the last one is missing but there isn't any invoices for anything.

 

[EddScott]

Personally I work the other way. Lots of invoices and receipts are more important to me than a stamped service book. I'm sure she showed me the service book and the last one or two are missing.

Stamps don't tell you what has been done to the car whereas invoices do - guidelines or not. IMHO anway.