Surrendering Car

[beardo81]

Hi, looks like I have to give back my car to finance co., no job and cant keep up repayments. Looked into the 'Half Rule' but im a year or so off that so no go either.
My question is: am I going to get screwed after the car goes for auction? My car has devalued like hell and I know when the balance comes in it will be brutal, especially having to pay for nothing.
Has anyone any experience of this? Love to hear if theres any good to be taken from this!!

[the_syco]

They can sell it for €300 and you'll still have the to pay off the remainder...

[Mena]

Speak to the bank before you do anything. You'd be surprised how accommodating they can be, the last thing they want is another worthless car on their books.

Leave the nuclear option for last.

[miju]

Originally Posted by the_syco

They can sell it for €300 and you'll still have the to pay off the remainder...

not strictly true. alot of the times the finance company will write off the remaining finance (depending on amount , situations obviously).

However, from the date (which could be another year away) the finance company write off the debt or settle it with the OP there is a period of 5 years that the bad debt will remain on record with the Irish Credit Bureau which all banks , finance companys check prior to issuing credit.

This record of the loan status stays there for 5 years so OP you will find it alot more difficult for that period to obtain finance (I know it's last thing you wanna hear cos you've enough troubles) but just wanted to give you a heads up.

Hope things start looking up for ya soon.

Originally Posted by Mena

Speak to the bank before you do anything. You'd be surprised how accommodating they can be, the last thing they want is another worthless car on their books.

Leave the nuclear option for last.

given what I said above this is the best option to try. dont bury your head in the sand if you can pay even a small amount to keep the finance company happy for the time being till you get back on your feet then you might just dodge the bullet. Apparently finance companys are being alot more accomodating when it comes to bad debts at the moment given the recession etc.

[beardo81]

Thanks very much for the replies, im not that concerned about credit ratings, wont be touching any for quite a while anyway! Just dread being saddled with a large debt with nothing at the end. My own stupid fault for an expensive car I didnt really need but annoying nonetheless.
Back on to the bank again tomorrow, hopefully we can trash something out, I cant see them writing off 12k+ of debt though. Might get them on a good day I hope!

[panda13]

You could go back to the Garage and see if they are interested in buying it from you and thus clearing the loan, or, you could advertise it on the car websits. There are always people looking for a bargin. You could then pay off your loan or at least pay off a lump sum and spread the balance if any over an agreed period.
Good luck

[adrieanne__x]

Have you tried contacting MABS?

[Sponge Bob]

It is the Half Rule or nothing I am afraid. You will end up owing a lot more if they repo the car and sell at a pittance .

Also ensure you do NOT sign a Voluntary Surrender Form which is NOT the same as the half rule. That will land you right in it .

[ejmaztec]

Originally Posted by panda13

You could go back to the Garage and see if they are interested in buying it from you and thus clearing the loan, or, you could advertise it on the car websits. There are always people looking for a bargin. You could then pay off your loan or at least pay off a lump sum and spread the balance if any over an agreed period.
Good luck

Wouldn't there be a problem were an HPI check carried out on the car?

[beardo81]

Originally Posted by Sponge Bob

It is the Half Rule or nothing I am afraid. You will end up owing a lot more if they repo the car and sell at a pittance .

Also ensure you do NOT sign a Voluntary Surrender Form which is NOT the same as the half rule. That will land you right in it .

If theres no other way than giving the car car ill have to sign the VSF wont I?

[panda13]

The bank will have regd.it on HPI. However, if a Garage or other person is willing to buy it from you, they would pay the Bank, assuming that the balance is not more than they are prepared to pay,then HPI would then clear the vehicle. You could also advertise it on the Used car websites..
If on the other hand, the car is worth less than the balance due, you have 2 options, take the sale price that you can get and reduce the amount owed and then rearrange an overdtraft/loan to clear the balance over an agreed timeframe. This will keep your credit record clean.
Finally,if this is not clear,! you should talk to MABS as the will see the "full picture" and advise accordingly.

[beardo81]

Spoke to MABS and they gave pretty much the same advice as you guys so thanks to everyone who replied.

Think im going to try and get reduced payments and string them along until I can avail of the Half Rule, then try to nail them with it!! Wish me luck...