Car finance worries

WaynelleUK09 · 16 Oct 2013 at 19:48

Right bit of a long story, i was with me ex partner (fiancee) for 5 years and she wanted a new car so me having decent credit and thinking nothing of it used my credit to get her a car the thing is i cant drive but the peugot dealership sorted it so that the car fiance was in my name etc.

Now 5 months down the line she sent a message saying basically that was it was over but i let her keep the car as it was no use to me as i cant drive and she was still paying for it, but last night she crashed it and today has been told it was a right off, my heads all over the place as far as im aware the insurance company is paying out but will it cover the full cost of the fiance as ive never drove before i dont know what happens. And all im getting out of her is that she has got fiance in her name today and is getting another car!

here is a picture of the car after the crash:

Destination · 16 Oct 2013 at 19:52

Did the original purchase policy include GAP?
Did you buy separate gap insurance?

swillsy · 16 Oct 2013 at 19:54

I don't know why people do this. Didn't you think that it might cause an issue if you broke up a few months later?

As long as she is insured to drive it you'll be fine and get paid the value of the car. Insurance and finance are different things.

Xire · 16 Oct 2013 at 19:54

What was wrong with her credit rating in the first place? did she even try to get a loan?

WaynelleUK09 · 16 Oct 2013 at 19:55

Hikari Kisugi said:
Did the original purchase policy include GAP?
Did you buy separate gap insurance?

Yeah it did have GAP but i think the dealer said he wasnt sure if they would pay out since im not a driver are on the insurance thats what i think he said. cheers for the reply

Xire · 16 Oct 2013 at 19:55

WaynelleUK09 said:
Yeah it did have GAP but i think the dealer said he wasnt sure if they would pay out since im not a driver are on the insurance thats what i think he said. cheers for the reply

thats crap, the insurance company would pay the policy holder.

Russinating · 16 Oct 2013 at 19:56

If you haven't got gap insurance then no, the payout will probably not be the cost of the car, BUT it might cover what's left to pay seeing as you're 5 years down the line. Doubtful though.

WaynelleUK09 · 16 Oct 2013 at 19:56

swillsy said:
I don't know why people do this. Didn't you think that it might cause an issue if you broke up a few months later?

As long as she is insured to drive it you'll be fine and get paid the value of the car. Insurance and finance are different things.

Will the insurance company give it straight to the finance company r give it to her. I thought we were a strong couple been through a lot and were trying for a baby, obviously i was wrong

WaynelleUK09 · 16 Oct 2013 at 19:58

Russinating said:
If you haven't got gap insurance then no, the payout will probably not be the cost of the car, BUT it might cover what's left to pay seeing as you're 5 years down the line. Doubtful though.

Was only 5 month down the line i was with her for 5 years.

Ice Rich · 16 Oct 2013 at 19:59

Russinating said:
If you haven't got gap insurance then no, the payout will probably not be the cost of the car, BUT it might cover what's left to pay seeing as you're 5 years down the line. Doubtful though.

5 months down the line.

One · 16 Oct 2013 at 20:08

Insurance will pay your gf. Finance company own the car though and they don't care you've written it off. You still owe the monthly payments and if she stops paying you have to start. You'll need to get the insurance money from her to pay the finance company, you'll also have to cover any shortfall as insurance company will only pay what the car is worth which will be significantly less than the finance left on the vehicle if you are only 5 months into the cars and finance deals age. Where you get this shortfall is either you or your gf, this is your problem to work out. Assuming you don't have GAP insurance.

Also the dealer shouldn't really have let you buy finance for a car that essentially isn't yours. It's fronting, but I suppose the salesman only saw the commission from a couple that have been together for 5 years...

The finance company still own that vehicle/what you owe and unfortunately for you all the paperwork says it's you that owes this money, not your ex.

Make sure your ex gives you the payout from insurance or you're screwed.

WaynelleUK09 · 16 Oct 2013 at 20:11

desires said:
Insurance will pay your gf. Finance company own the car though and they don't care you've written it off. You still owe the monthly payments and if she stops paying you have to start. You'll need to get the insurance money from her to pay the finance company, you'll also have to cover any shortfall as insurance company will only pay what the car is worth which will be significantly less than the finance left on the vehicle if you are only 5 months into the cars and finance deals age. Where you get this shortfall is either you or your gf, this is your problem to work out. Assuming you don't have GAP insurance.

Also the dealer shouldn't really have let you buy finance for a car that essentially isn't yours. It's fronting, but I suppose the salesman only saw the commission from a couple that have been together for 5 years...

The finance company still own that vehicle/what you owe and unfortunately for you all the paperwork says it's you that owes this money, not your ex.

Make sure your ex gives you the payout from insurance or you're screwed.

Thanks for that reply, how long does it take for insurance companines to payout usually?

Jonnybmac · 16 Oct 2013 at 20:13

all depends, could take weeks could take months. gap i beleive is with the finance, so it doesnt matter who is driving. you just have to prove the settlement figure from the insurance i believe and they pay the car off from that. you need all the money from the insuranec though so id make sure your ex pays up

One · 16 Oct 2013 at 20:16

Jonnybmac said:
all depends, could take weeks could take months. gap i beleive is with the finance, so it doesnt matter who is driving. you just have to prove the settlement figure from the insurance i believe and they pay the car off from that. you need all the money from the insuranec though so id make sure your ex pays up

Unfortunately if it was the peugeot financial shortfall agreement then it requires the policy holder to have comprehensive cover on the said car

https://peugeotfs-gap-dealersystem....nts/peugeot-fs-gap/dealer/policy-document.pdf

ELIGIBILITY REQUIREMENTS
You are eligible for this cover if at inception:
(a) You are to be the owner or registered keeper of the Vehicle.
(b) You hold a valid full UK driving licence.
(c) You hold a valid Policy providing comprehensive Motor Insurance in respect of the Vehicle

Unfortunately I think your best case outcome with this is to have your GAP payments back as you were missold the policy by the dealer which knew the car wasn't for you. Although even this may be tricky to prove.

This is a pretty standard clause though or you could literally take out GAP insurance on anyone's car then just smash into it and claim the difference and pocket it!

Saying that, big companies don't like bad press from being mean to genuine people so they might pay out if the situation is fully explained.

WaynelleUK09 · 16 Oct 2013 at 20:16

Jonnybmac said:
all depends, could take weeks could take months. gap i beleive is with the finance, so it doesnt matter who is driving. you just have to prove the settlement figure from the insurance i believe and they pay the car off from that. you need all the money from the insuranec though so id make sure your ex pays up

Ok thanks, i dont even know what to say to the finance company about all this and how to activate the gap insurance r nothing, im just in a right mess and she doesnt answer me.

mikeh501 · 16 Oct 2013 at 20:23

You bought a car for her. She broke up with you, and you let her keep YOUR car. Your mad. :eek:

Jonnybmac · 16 Oct 2013 at 20:23

shes not answering you? doesnt sound too good that, you may get screwed over, or she may feel guilty?
seems from what desieres said you may be out of pocket already, depending on by how much.

i had my 7k car on finance for 3 years and only managed to loose £400 in delfation v payments so you might be lucky there... gap and with any warrenty/insurance there is always a mens where they can argue and not pay out, but try and argue you were mis sold the gap as you could tand to get 400+ back from it, which may cover the payments anyways.

looks like a 3-4k finance agreement?

WaynelleUK09 · 16 Oct 2013 at 20:27

Jonnybmac said:
shes not answering you? doesnt sound too good that, you may get screwed over, or she may feel guilty?
seems from what desieres said you may be out of pocket already, depending on by how much.

i had my 7k car on finance for 3 years and only managed to loose £400 in delfation v payments so you might be lucky there... gap and with any warrenty/insurance there is always a mens where they can argue and not pay out, but try and argue you were mis sold the gap as you could tand to get 400+ back from it, which may cover the payments anyways.

looks like a 3-4k finance agreement?

Finance was for i think just over 5k, i have talked to her earlier and she says she wont leave me with that debt as she already left me with 2.5k credit card debt, i only work in a shop and im panicking on what to do thats why i let her keep the car cos she was paying it.

mikeh501 · 16 Oct 2013 at 20:31

Lol

Best to stay on her good side until she's paid you out. She could ruin you lol.

Kenai · 16 Oct 2013 at 20:32

I think the big lesson you need to learn here is not to trust someone else like that, especially at the point of a relationship break up.

You should have either taken the car back or seen about getting the finance changed into her name, an informal agreement that she would keep paying for it isn't good enough as ultimately she could just say 'no' at any point and then you've got a world of hassle.

In this case, as long as she gives you the insurance payout (try and make sure she fights for a decent value and doesn't just accept the first crap offer they send) you'll probably end up being stung for a few hundred quid in it all.