I have a car which is secured by a personal loan.We have paid a substantial amount of money on repairs for this car over the past year and we have decided that we cannot afford to keep it anymore.It is not valued at much, we will be lucky to get around $500-$700 for it.The windscreen has a crack in it and needs to be replaced.We have been given a quote of $700-$800 fitted.I have contacted the Finance Company and explained everything to them and asked them if they wanted to sell the car or if they wanted me to sell it and the proceeds go towards the loan. The response I got from the Finance Co.is that I will have to repay the loan amount in full before they can release the car and that its not worth selling because its not valued at much.The issue here is I dont want the car on my property anymore and need to get rid of it.I told them that I cant afford to pay the loan in full and shouldnt have to because I am still making my regular payments and the car has not been repossessed.I told them that if they dont want the car and dont want to try and sell it I will give it to the wreckers.They have not replied to me for 5 days. Is there anyone that can give me some good advise as to what I can do!Am I right in saying I will give it to the wreckers if they (Finance Co) dont want it.
phillip.weston,
Nov 5, 2:28am
sell the car here on trademe but get the new owner to write the cheque or direct the payment directly to the finance co. It happens all the time and many buyers will be accommodating if they are given the opportunity to pay the finance co direct. What sort of car is it out of curiousity!
cavalier2005,
Nov 5, 2:37am
Thank you for the advise. Its a 1996 Toyota Cavalier.
budgel,
Nov 5, 2:38am
You can give the car to whoever you like, you still owe money on it.
The loan will be secured by the car, not the car secured by the loan.
You will legally required to pay off the loan. The finance company has a financialtransaction with you. Get some legal advice as to whether you have any financial liability beyond the car. You may find it is cheaper to keep paying off the car than getting in arrears if they are legally in theright and decide to go for you.
Keep records of your dealings with the finance company, If you end up in default your credit rating will be crap, which may cause difficulties when wanting to borrow to buy a home or something else in the future.
msigg,
Nov 5, 2:39am
No just pay the loan and don't get another loan!, you can't sell it to the wreakers because they will want to de-register it and they can't because the title is in the finance companies name. Just get a second hand windscreen for it and keep using it untill you have paid the loan off then you can do what you want with it.
andrea_w,
Nov 5, 2:42am
Possibly the WORST car to put on tick. lesson learned I bet Didn't you do any homework on that type of car before you bought it!!
cavalier2005,
Nov 5, 2:50am
We bought the car 7-8 years ago, so was all paid off and used it as collateral for the loan 4 years ago.
cavalier2005,
Nov 5, 2:58am
budgel - thank you for correcting me.Loan secured by the car not car secured by the loan. Also I have assured the Finance Co. that I will still continue to make regular payments as I have been doing.I just need the car off my property.
cavalier2005,
Nov 5, 3:03am
msigg -I have been trying to find a windscreen for this car ever since it happened.No luck.Even travelled to Auckland to pick one up from a seller in TM but thats a long story.No one was home so was a waste of time.Tried all the wreckers here and there and still no luck.
jkm,
Nov 5, 3:23am
Because the car is collateral for the loan you will have to pay off the loan when you get rid of the car, or you have to provide something else as collateral for the loan.
a.woodrow,
Nov 5, 4:33am
You have another car I presume! get the security transfered to it, or see if you can get a non-secured personal loan from your bank
nuberanda,
Nov 5, 4:39am
A windscreen should not be that much. My A3 needed one, Smith ans Smith quoted over 700, most small businesses were around 300 to 400, so it's worth calling around (assuming you can get them new).
supernova2,
Nov 5, 4:53am
As I understand it cost price of most new screens to the glass coys is less than $100 so should only be about $300.Is you car insured - should be if is security for a loan.Then insurance coy will pay for the window.
supernova2,
Nov 5, 4:58am
ps have a look in car parts most toyota screens seem to be about $150.Cavalier might be abit different but give some of those guys a try.
hawat,
Nov 5, 8:39am
As long as you are up to date with the payments, the finance company won't do anything. However of they feel that their security (the car) is somehow at risk then they may be tempted to repossess it even though you are up to date with the payments. SO, keep the car and continue to make payments because if they repossess it they will add costs plus fees etc (legal fees will probably be $1500 or so on their own) to the outstanding loan amount then simply place the car for sale by auction. Sounds as tho' you would be lucky attracting any bids at all. THEN you would be left having to pay what ever remains outstanding. Keep the car and keep paying. Sorry its the cheapest option
16feb08,
Nov 5, 12:20pm
^What a complete load of bullshit. No finance company can repo a car just because they "feel" that their security is at risk. As long as payments are kept up to date they don't even care about the car. Or who owns it. OP would be best to use another car as security as someone else suggested, that way you are free to sell the cavalier without any hassle at all. Or sell it as is to someone who trusts you to keep paying the loan, because if you don't, the new owner will be waving goodbye to it as it disappears on the back of the repo man's tow truck.
hawat,
Nov 5, 12:49pm
you are wrong. The financier has every right to repossess the car even tho' payments are up to date if they think that you are going to do anything that will diminish the value of their security. I have done it as a financier
intrade,
Nov 5, 1:26pm
now that is bad news a cavalier is worse then a mitsubishi, its not actuarly a toyota its some american poo with a toyota badge . I hope you never again put finance on a car . and yes you do have to repay the loan in full befor it can be sold you wont get much at all because its sutch a unwanted rubbish car. Windscreens you can get cheaper now i was told for these . but that is not the only problem as you already know. The thing is you can sell it but have to pay back the loan at the same time you sell it so if you get 500$ for the car you need the rest of the money to pay the finace comnpany back , and the buyer would need to have a copy of cleared finance also so he dont gets stung, its a bit of a hole you dug for your self and i hope you get smarter from it now.
kazbanz,
Nov 5, 2:06pm
cavalier you cannot LEGALLY sell the car untill it is paid for in full. It really is that simple. If you read your contract you will find that it doesn't belong to you untill paid for in full.Basically you are currently renting the car from the financier. Thats what the hire part of hire purchase means. That was the bad news. Now for the good news. The first thing you need to do is find out what your settlement figure is on your loan. Then you could talk to your financier and see if you can transfer the security to another car or in some cases maybee other property. If they don't want to know then maybee talk to another finance company or your bank. I STRONGLY RECOMEND you do not just return the car to the finacier because you will be charged reposession charges and it will be listed on your credit rating. If you sell the car and use the money to make payments then the car can and often will be reposessed by the legal owner-ie the finance company
intrade,
Nov 5, 2:11pm
i think if i read right he got a private loan on the car as security not financed the car when he purchased it but got finance on it after.!
16feb08,
Nov 5, 2:36pm
No you are wrong. This isn't a hire purchase, the car was used as security on a personal loan. If I took out a loan through you and I was up to date with payments, I'd like to know where you would find a judge who thought it was legal to take the car back because you "thought" I was going to do something to it. And why would you want to take it anyway! As surely that would upset me enough to stop making payments and cause you completely unnecessary bother !
cavalier2005,
Nov 5, 2:46pm
Thank you to all for your advice I will take into consideration. intrade - me is a she not a he.Yes that is right.I bought the car 7 years ago and paid cash.The car has been good to me all those years until this last year.I took out a personal loan for another reason and used the car as security.
tazcsv,
Nov 5, 2:57pm
You cant have that much to go on your loan if you have been paying it off for 4 years unless they really over valued it for your personal loan!
kazbanz,
Nov 5, 7:46pm
How much is still owing on the loan! If its a small enough amount will the financier release the security if you deposit the procedes of sale into theuir account!
tazcsv,
Nov 5, 8:02pm
They will only do that if it clears the amount oweing,
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