Car Finance

[betsiep]

Hi, just looking for some advice! I took out a car on PCP for 3 years in january 2016, i made repayments up until august this year when i lost my job. I tried to keep up with payments but couldn’t so around a month ago it was passed on to a collection agency. I spoke to them explained my situation and asked if i could set a payment plan up to clear the £5880. The amount includes the settlement amount and isn’t all arrears. I was told that i can only have a payment plan over 12 months and if I couldn’t clear it in that time they would have to arrange collection of the vehicle and it would be sold at auction. I explained i wouldn’t be able to clear it in 12 months as i am now a full time student with a low income.I received letters asking me to sign this and if the car didn’t sell for over the debt i would be liable for charges. I also asked if i could sell the car and pay off the debt but was told no. I am now just worried if i sign the papers and the car doesn’t sell for the debt amount, although i know the car is worth at least £1000 more than the debt amount, is there anything else i can do as i really don’t want to loose my car as i am a single mum of a 2 year old and would struggle to get around and to and from college/ nursery etc . I just feel like there must be another option!
Sorry for the long post & look forward to your advice!

[R0b]

First of all, who is the lender in this case?

Secondly, have you received a default notice from the lender? If yes, what date do you have to comply with the arrears before the agreement is terminated?

Can you post up the paperwork that they have sent you? make sure to redact your personal info.

[betsiep]

Hi thanks for your reply! The PCP was with Ford Plc but has been passed on to Link finance who are wanting me to sign the letter to collect the car, i don’t have the letter on me right now but i will post later. The finance on the car should end on the 20/01/19 but obviously it was passed on to the debt collection agency first

[betsiep]

This is the letter from the agency, any help would be appreciated

[R0b]

That letter suggests Link are acting on behalf of Asset Capital (No5) Ltd who may have purchased the debt from the original lender. Do you have any letters from the lender about the debt being sold? Do you have any correspondence about them other than this one?

The car will likely be sold at auction which doesn't usually fetch the best possible price so your valuation of it achieving £1,000 above the debt price is possible, but unlikely. They are right in that you can't sell the vehicle yourself because it's not your's to sell, however if you did sell the vehicle very quickly and were able to pay off the balance, then your debt would be cleared and though you would be in breach, there wouldn't be any loss to Asset Capital in that sense so a claim is unlikely to be made.

I don't condone selling the car but if you are confident of selling at the right price, then the risk is up to you.Of course if it goes pear shaped, then the fault lay squarely at your feet.