Got Car Finance For A Friend

[mark1979]

Re: Got Car Finance For A Friend

His biggest concern seems to be that I will get a charging order against his house and then seek a possession order so that I can control the sale. I think the risk of him ending up with nothing is a big driver here

[mark1979]

Re: Got Car Finance For A Friend

I now have this car back.

There is going to be some negative equity as he told me it had done 26k but its actually done 39k!!

When you VT a car on PCP, does the 50% figure include the balloon payment?

[des8]

Re: Got Car Finance For A Friend

I've tagged someone who is more at home with finance matters.. @rob
[MENTION=71570]R0b[/MENTION]

[R0b]

Re: Got Car Finance For A Friend

I now have this car back.

There is going to be some negative equity as he told me it had done 26k but its actually done 39k!!

When you VT a car on PCP, does the 50% figure include the balloon payment?

Hi Mark,

Yes, it is Section 100 of the CCA is your point of reference but the definition of "total price" in that section is as follows

“total price” means the total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

[mark1979]

Re: Got Car Finance For A Friend

Thanks Rob. £10k away from VT point then.

Need to look at selling it, I think it might be around £5k in negative equity.

[R0b]

Re: Got Car Finance For A Friend

Your liability will be restricted to the 50% amount, they may claim excess mileage charges from you but they can't unless they can prov that the mileage has caused damage beyond a reasonable condition.

I would suggest that the car is sevriced in accordance with the manual or at least once per year to help offset that problem you will come against.


If you haven't looked already then perhaps you might wish to check out this guide which should give you allthe information you need.

http://www.legalbeagles.info/forums/...ry-Termination

[mark1979]

Re: Got Car Finance For A Friend

Thanks Rob, I read the guide to VT a while back.

Am I correct in thinking that I can actually VT now but I still have to pay £10k to BMW? And if so, could I do a deal with them to pay that at say £500 per month?

[mark1979]

Re: Got Car Finance For A Friend

UPDATE:

Finally the car has been returned to BMW Finance although they have yet to sell it!! Its been 6 weeks now.

I have a court claim in against my former friend for my losses and costs in dealing with this (I had a solicitor early on but I ran out of money as costs escalated).

Basically, he defended my claim but his defence was a bit of a ramble which did not address any of the points in the particulars. Then there was a costs hearing where an Order was made about his defence (attached).

So at 4pm today I can ask for a judgment in default if he doesnt defend. As he has so far refused to really engage then I can only assume that he wont bother. I intend to seek a charge against his house however this weekend I have noticed that it is sold subject to contract so I will be asking the court for an urgent order. My question is, if I get the charging order, how do I serve it on the solicitor dealing with the sale of the house when I have no idea who they are?? Obviously I can serve it on Land Registry easily enough.

Also, my debt to BMW still stands at around £42k. It will only go down once they sell the car. Am I asking for a charge of £42k in the interim?

My Particulars Of Claim were as follows (the sum referred to here relates to the 3 months payments he didnt make):

1. The Claimant and Defendant formerly operated in business together as co-directors of limited companies.

1. In or around December 2014 the Claimant and Defendant entered into a loan agreement. The following were the express oral terms of the agreement:

1. The Claimant would apply to a dealer to procure a BMW X5 motorcar (‘the vehicle’) on hire-purchase, with a view to the vehicle being used by the Defendant;

1. The Defendant would use the proceeds of sale of his existing car, a BMW 6-Series, to pay down the deposit for the purchase of the said vehicle – which proceeds, in the event, were reckoned at £13,981;

1. The Defendant would pay to the Claimant, on a monthly basis, the sums which he (the Claimant) was required to pay the dealer under the contract for the hire-purchase of the vehicle (‘the instalments’);

1. So long as the Defendant continued to pay the instalments, he would be entitled to possession and use of the vehicle, and with the Defendant becoming entitled to permanent possession of the vehicle if all of the Claimant’s liabilities under the hire-purchase contract were to be so met by the Defendant;

1. If the Defendant were to default upon the timely monthly payment of the instalments, the Claimant was to be able (as he should think fit) to demand and obtain delivery-up of the vehicle, and with a view to its surrender to the dealer or onward sale in order to realise sums for the discharge of the debt to the dealer under the hire-purchase contract, as the case might be;

1. The Defendant would, if necessary, meet the excess of the Claimant’s liabilities to the dealer in the event that surrender or onward sale (as described in sub-paragraph (v)) was not to prove sufficient to discharge all of the sums outstanding under the Claimant’s hire-purchase contract.

1. In circumstances whereby it would or might have been necessary for the Claimant to re-assume possession of the vehicle in the event of the Defendant’s breach of the agreement, it was an implied term of the agreement that the Defendant was at all times before taking permanent possession of the vehicle to retain it within the jurisdiction of England and Wales (alternatively, within the United Kingdom).

1. On 12 December 2014, and in accordance with the agreement as aforesaid, the Claimant took out the vehicle (reg. XXXX XXX) on hire-purchase and assumed the liabilities of that contract.

1. In breach of contract, on diverse dates since the agreement was concluded, the Defendant has not paid all monthly instalments timeously or in full. In particular, but without prejudice to the generality of the foregoing, in March 2016 and April 2016 the Defendant failed to pay the required monthly instalment of £752.45.

1. In further breach of contract, the Defendant has since April 2016 failed to pay further monthly instalments as agreed.

1. As a result of these various breaches of contract aforementioned, as at the date of the claim form the Defendant was indebted to the Claimant in the total sum of £2,257.35.

1. In further breach of contract, around December 2015 the Defendant wrongfully removed the vehicle from the jurisdiction (alternatively, from the United Kingdom) by taking it with him to an unknown address in Greece.

1. By way of claim form issued on 1 June 2016, the Claimant issued proceedings against the Defendant for breach of contract or, alternatively, conversion, on account of (amongst other things) the Defendant’s removal of the vehicle from the jurisdiction. By way of order of H.H.J. Cooke, dated 2 June 2016, the Defendant was required to detain and preserve the vehicle pending further order. On 17 June 2016 the Claimant and Defendant agreed a compromise between themselves as to the claim for breach of contract or, alternatively, conversion, so far as the fact of the removal of the vehicle from the jurisdiction is concerned.

1. By way of the same claim form, the Claimant sought declaratory relief to the effect that he would be able to sell the vehicle with a view to discharging his liabilities under the hire-purchase contract. On 17 June 2016, in like circumstances, the Claimant and Defendant agreed a compromise between themselves as to this element of the claim also.

1. In the circumstances, and further to the remaining elements of the claim, the Claimant seeks payment of the debt owed by the Defendant to him and a declaration that the Defendant shall be liable to pay the Claimant such additional sum(s), if any, as the Claimant may himself continue to be liable for under the hire-purchase contract, i.e. following surrender of the vehicle to the dealer or, as the case might be, onward sale (with the proceeds thereof having been passed to the dealer in partial discharge of those liabilities).

1. Further the Claimant claims interest under s.35A of the Senior Courts Act 1981 at the rate of 8% per annum on the sum of £2,257.35, as calculated from the date of the claim form in the sum of £16.50 as at the date of these Particulars of Claim and as continuing until judgment or sooner payment at the daily rate of £0.50.

1. Alternatively, the Claimant claims interest on such sum(s), at such rate(s) and for such period(s), as may be just.

AND the Claimant claims:

1. Debt in the sum of £2,257.35 - subject to increase as the proceedings continue
2. A declaration as to the Defendant’s liability to the Claimant in a sum equivalent to any further liability of the Claimant under the hire-purchase contract (if any) following surrender or sale of the vehicle as aforementioned;
3. Interest;
4. Costs

[wales01man]

Re: Got Car Finance For A Friend

Have you claimed and obtained judgement for 42k the amount of the charge you will go for?

[mark1979]

Re: Got Car Finance For A Friend

I can ask for judgment in default at 4pm today

[wales01man]

Re: Got Car Finance For A Friend

For the 42k ? you may have to hurry up on the charge others on LB will advise

[mark1979]

Re: Got Car Finance For A Friend

I spoke to the court earlier today.

When I email for judgment I will attach an N379 for the charge and will also request an urgent hearing. Given that time is of the essence here they told me to go along to the court tomorrow with the paperwork and supporting evidence and to pay the fee and to wait around as I may be able to see a judge at some point during the day!!

BMW just gave me the figures and will email them out to confirm:

Balance - £43,918.37
CAP value of car - £33,900

[mrpoorman]

Re: Got Car Finance For A Friend

Deleted

[mark1979]

Re: Got Car Finance For A Friend

Well it didnt quite go to plan...

Turned up at Birmingham High Court on Tuesday and made an urgent application for judgment in default and a charging order. Was seen within an hour by a Deputy District Judge. Judgment was awarded but she refused the charging order but did provide some advice on what I could do so that I could present the application again. So I went away and did it!!

2 hours later I am back and ready for attempt number two! Urgent application was made again and we waited a couple of hours. This time got seen by a District Judge and he ripped me to shreds!!!!

He didnt like the fact that I was "trying to have a second bite of the cherry" and he refused to issue the charging order because my judgment was for damages/costs to be assessed and he wouldnt consider it there and then without giving the defendant a chance to contest things even though he has barely participated in proceedings so far and is clearly just trying to drag this out until he can sell his house and disappear!!

I'll be back next week with an application for a freezing injunction to freeze the pending sale of the house.

[Westie12]

Re: Got Car Finance For A Friend

Hi mark
did you ever service the car through BMW