Car Loan Advice Please

I have a motor loan with Santander. originally GE money. Used it purchase a car from the car shop in Nogvember '08. 60 month term so just under 1/2 way thru.

I want to give them the keys and walk away from the loan.

the contract states that I have to pay a cash lump sum if terminating early. no mention of return of goods, just cash settlement.

anyone any experience of this? does the contract have to stipulate that return of goods is permissible?

[Guest]

Re: Car Loan Advice Please

In short, no it does not.

[The Debt Star]

Re: Car Loan Advice Please

In short, no it does not.

Hi. sorry, so you're saying that Santander can accept the car in full or part satisfaction? if so, are they inclined to do that? Have heard peeps have problems with lenders over this?

[TUTTSI]

Re: Car Loan Advice Please

Hi DS

It would probably be a good idea to post up the HP or loan agreement without your personal details.

Advise us how many payments have been made and the balance still due?

Are you able to sell the car and then pay back the loan?

Walking away and handing back the car may involve you in extra penalties and any shortfall they will come after you.

Tuttsi

[The Debt Star]

Re: Car Loan Advice Please

Hi, I'll scan up a copy of the CCA. Santander have a charge on the car I believe, to prevent its sale, although I do not understand how that works.

I have made 25 of the 60 repayments of £130 pm so far.

The balance is now £4500, although this is not the early resettlement figure, which I estimate to be £3,600.

The car itself is sadly worth £2,100 or thereabouts according to webuyanycar.com

CCA to follow...

[TUTTSI]

Re: Car Loan Advice Please

So DS if you walk away and allow them to repo you will have to make up any shortfalls ie the difference between what the get and what you owe. They will sell it at auction and you will have a furher amount to pay back as you will also have the auction fees plus any other related costs of revovery amd otherwise and believe me they will not look after your interest as at the end of the day they will come to you and if you cannot pay will probably end up getting a judgement.

It is really best to try sell privately if you can and get us much for it as possible. Have a look on line at the various sites as the price you are looking up is if a dealer purchases it I am guessing is going to be low as they have to put their markup on it.

Hi, I'll scan up a copy of the CCA. Santander have a charge on the car I believe, to prevent its sale, although I do not understand how that works.

I have made 25 of the 60 repayments of £130 pm so far.

The balance is now £4500, although this is not the early resettlement figure, which I estimate to be £3,600.

The car itself is sadly worth £2,100 or thereabouts according to webuyanycar.com

CCA to follow...

[The Debt Star]

Re: Car Loan Advice Please

Hi. Do you still want to see the CCA?
Looks like I've been scammed on the return of goods point as I distinctly asked the dealer if the agreement permitted return of goods (on the understanding that yes, any shortfall in value would have to be met by me). I failed to read the small print as I was so pleased to get the finance.

[Caspar]

Re: Car Loan Advice Please

DS,

For god's sake don't just hand over the car and leave yourself liable for anything outstanding. They sell it for peanuts at auction and within a month or two you'll have a CCJ - I have! I learned the hard way thinking I was doing the best thing.

Post up the agreement if possible so we can have a good look at it to see exactly what it says.

[The Debt Star]

Re: Car Loan Advice Please

Here 'tis

http://i822.photobucket.com/albums/z...1/4abb6f9b.jpg
http://i822.photobucket.com/albums/z...0f02b48c-1.jpg
http://i822.photobucket.com/albums/z...1/9966f9ed.jpg
http://i822.photobucket.com/albums/z...1/82c3bcb1.jpg

[TUTTSI]

Re: Car Loan Advice Please

Having had a quick read of the agreement I am still of the opinion that you should sell privately and not fall foul of reneging on this agreement as I think it will cost you loads more than if you have a small shortfall by selling the car yourself.

You should definately obtain the actual early redeption figure and try and sell the car for as near as to that figure as you can so that you dont have a huge shortfall.

[The Debt Star]

Re: Car Loan Advice Please

I don;t think Santander will let me sell it as there is some sort of restriction registered from memory. Anyone any idea how I can find out?

[seduraed]

Re: Car Loan Advice Please

There is probabally an interest registerd on the car. What you ned to do is go to a dealer andsee what he offers. Then arrange in writing to get this sum paid to santander by the dealer on condition tht they remove the their interest. AsI say get it in writing and then getthem to fax confirmation to the dealer. Get him to give you the cheque made payable to santander. Take the cheque to the santander branch or post it to the addrss given in the letter. Then unfortunatly you have to finish making payments.

[The Debt Star]

Re: Car Loan Advice Please

There is probabally an interest registerd on the car. What you ned to do is go to a dealer andsee what he offers. Then arrange in writing to get this sum paid to santander by the dealer on condition tht they remove the their interest. AsI say get it in writing and then getthem to fax confirmation to the dealer. Get him to give you the cheque made payable to santander. Take the cheque to the santander branch or post it to the addrss given in the letter. Then unfortunatly you have to finish making payments.

Good advice. thx.

[seduraed]

Re: Car Loan Advice Please

I've read the agreement and what you have is a personal loan not an HP agreement HP agreemens have walk away calauses in them bt these are very restricted.
Basially if you have and HP agreement and have paid 50% of the sum borowed not missed or been llate with any payments then you can return the goods in good condition allowing for fair wear and tear then you can walk away. However if there is any insurance, such as gap then that will have to be paid off. Th major get out for the finance companies is the definition of fair wear and tear ,sorry but I'm not sure how this is assessed. LOL

[Caspar]

Re: Car Loan Advice Please

I've read around this for ages DS and it's a nightmare - so much more complicated than a normal HP agreement. Out of interest have they sent you annual statements? The reason I ask is that this was a requirement that was added to the original act later on under Section 77 a and b. It still wouldn't give you the right to cancel, but you could reclaim a shed load of interest if they haven't sent you statements.

Otherwise, I'm really sorry, but I can't see any way out that hasn't been mentioned.