what is a post termination arrangement for car finance ?

[Guest]

sorry as a guest I cant seem to update thread thankyou for your reply* what I should have mentioned on earlier post is that the car was not taken they agreed to under medical evidence allow the car to be kept but offered this agreement to continue as per the original contract**

just wanted to know if anybody else had this happen and if so were there any pitfalls to be aware of*

just wanted to know if anybody else had this happen and if so were there any pitfalls to be aware of*can anybody explain what this offer means , background info is .......payments were missed on car finance agreement due to poor health letters were unopened and original contract was terminated unknowingly to customer and vehicle recovery instructed at which time finance company was informed of ill health and finance company were informed that payments could continue if possible , but they have said the contract is terminated but they may consider a post termination arrangement and have to submit income/expenditure etc . when I type it in google I cant find anything online regarding this arrangement , everything talks about early termination of finance.
*

[Guest]

can anybody explain what this offer means , background info is .......payments were missed on* car finance agreement due to poor health letters* were unopened and original contract was terminated unknowingly to customer and vehicle recovery instructed at which time finance company was informed of ill health and finance company were informed that payments could continue if possible , but they have said the contract is terminated but they may consider a post termination arrangement and have to submit income/expenditure etc . when I type it in google I cant find anything online regarding this arrangement , everything talks about early termination of finance.

[luxardo]

It means they have took the car back and cancelled the contract but they think you still owe them money. Presumably they sold it at auction and they never got enough to cover the purchase price/interest and early termination fees etc you owed them.
They are not prepared to reinstate the original finance agreement because it is terminated but they are willing to negotiate a payment plan instead of taking you to court.
They are asking to see your finances so they can decide how much a month they can get from you.

[Amethyst]

I've merged your thread ( but annoyingly it's done it back to front - apologies) - you do need to be registered to reply to threads- only takes a minute and only needs an email address for notifications - use a username that doesn't identify you. There's a sign up button at the top of the page. I'll move your thread to the motoring forum too xxx

[R0b]

It means they have took the car back and cancelled the contract but they think you still owe them money. Presumably they sold it at auction and they never got enough to cover the purchase price/interest and early termination fees etc you owed them.
They are not prepared to reinstate the original finance agreement because it is terminated but they are willing to negotiate a payment plan instead of taking you to court.
They are asking to see your finances so they can decide how much a month they can get from you.

I suspect it means in return for making the repayments of the outstanding balance (usually at the same rate as before), the debtor can continue to use the car. There have been several reports on here that Moneyway offer this kind of solution.*

[luxardo]

I suspect it means in return for making the repayments of the outstanding balance (usually at the same rate as before), the debtor can continue to use the car. There have been several reports on here that Moneyway offer this kind of solution.

OP stated the car had been recovered

[R0b]

Recovering the car does not necessarily mean it has been sold though. They could offer the car back up and return to the OP for a small fee, or it could be collected if within the OP's remit to do so.*

[luxardo]

Recovering the car does not necessarily mean it has been sold though. They could offer the car back up and return to the OP for a small fee, or it could be collected if within the OP's remit to do so.

Unlikely, they have to pay storage fees so they send them to auction asap.
But anyway, maybe you are right, all I'm saying is I based my opinion on the assumption the car had been sold.

[Amethyst]

what I should have mentioned on earlier post is that the car was not taken they agreed to under medical evidence allow the car to be kept but offered this agreement to continue as per the original contract

Bringing this down here as the threads merged upside down ( likely my fault) - just to confirm that the car hasn't been recovered.

[R0b]

Sure and I'm simply speculating based on experience but I think the easiest thing to do is for the OP to go back and clarify with the lender. As far as I am aware, there is no storage fees as they're sent directly to do auction houses to be put up for sale, but they aren't always sold immediately (in my experience) as they will need to be appraised too.*

Of course there is the other possibility that the lender didn't terminate correctly and, if having paid one third of the total price the car will become protected goods. If the car was repossessed then the OP could have a legal remedy for the return of all payments under the agreement. Again, only the OP will be able to know that.**