Soldato
Some may say hindsight but to me the obvious thing to do would be to sell the car if it has a bit of money worth in it and just buy a £300 banger for the time being.
Handing the lender the keys doesn't sound like the best idea. They'll just send the car to auction and come after the lendee for any shortfall. He'd receive a better price selling the car privately, albeit for more effort.I personally think they will have to settle at 4k which means either they take the car or raise the cash, i told him if that happens then tell them to take the car and buy an old fiesta / clio for around the £800 mark,
Handing the lender the keys doesn't sound like the best idea. They'll just send the car to auction and come after the lendee for any shortfall. He'd receive a better price selling the car privately, albeit for more effort.
Handing the lender the keys doesn't sound like the best idea. They'll just send the car to auction and come after the lendee for any shortfall. He'd receive a better price selling the car privately, albeit for more effort.
I personally think they will have to settle at 4k which means either they take the car or raise the cash, i told him if that happens then tell them to take the car and buy an old fiesta / clio for around the £800 mark, they are obviously keen to resolve this and get rid of this debt which is the plus part, i could imagine many people bury their head in sand in these situations.
Be careful here. They (probably, as it's how these usually work) already own the car. That £4,000 they're quoting may already be accounting for them keeping the car, rather than being in lieu of the car as you seem to be assuming.
Because getting 4K back now rather than potentially not getting it back is a win for the creditor.Well we can assume it does.
He owes 12k.
The car is worth 4k.
He has repaid 3.5k
They say they will settle the account for 4k.
In the OP it makes it sound as though the company is willing to write off 4k but why would they do that? No, they already own the car. The 4k they will accept is the difference between the state of account and value of the car.
Because getting 4K back now rather than potentially not getting it back is a win for the creditor.
It's quite common for settlements to be accepted when heavy debts are involved.
The type of person who fits the bill is usually
Unemployed or in a terrible job or on benefits
Lives in a terrible area
Never bothered to give a toss about anything other than drink and drugs
Poorly educated due to not giving a toss
Therefore doesn't understand interest or how it works
That's a pretty good questions and honestly one I wouldn't know the answer to.Right but they already own the car. Their company name is on the logbook. He confirmed that when he said they did the HPI check.
So I suppose the big question is do you get the car back when you settle the 4k?
That's a pretty good questions and honestly one I wouldn't know the answer to.
I'd assume so? But I'm not sure, it would depend on the terms I'd expect.
Part of me wants to say yes if it's a secured loan.
However, if they've ownership of the vehicle, I wouldn't be so sure.
Ouch indeed, but it's still an 8k settlement for a 12k owing. Which isn't too farfetched from what you should expect on a settlement.If not... Ouch
But 3 or 4 grand has already been repaid. It sounds extortionate even if legal.
It maybe moreSo he borrowed £3800 and they are basically asking for £7500 in total to settle the account so it's about 97.5% interest overall. I'd try and negotiate a bit more but it doesn't seem dodgy in itself.
The car comes up on HPI checks belonging to Auto Advance, thus making it difficult to sell.
Well we can assume it does.
He owes 12k.
The car is worth 4k.
He has repaid 3.5k
They say they will settle the account for 4k.
In the OP it makes it sound as though the company is willing to write off 4k but why would they do that? No, they already own the car. The 4k they will accept is the difference between the state of account and value of the car.