[rameire]

Hi,

Mr Rameire was in a serious car crash on Tuesday and our car was totalled so I was hoping you guys might be able to help me. He was hurt, but will recover and noone else was involved thankfully!

Ok, so the car is a write-off (still waiting to hear this officially from the insurance, but if they can repair that, then they are miracle workers!!) and we got it on a HP agreement from BOI leasing through the Ford garage. This was taken out in Jan 2010 and has another 2.5 years left. There is €8.5k left on HP/lease and when (and I hope its WHEN) the insurance company pays out, what is the next best course of action:

1. Pay off outstanding lease with chq and start again
2. Keep paying lease as normal and use chq to buy new car outright.
3. Any other suggestions you might have...

I guess the question also is what are we legally obliged to do. Do we need to inform the leasing company of the car being toast?

Thanks in advance for any advice given as he is the one that normally deals with these things!

[Random]

the insurance company will prob pay your finance company directly and not give you a choice in the matter, assuming the car is a write off as you say.

[rameire]

Ah that makes sense. They did ask me that on the phone if it was leasing and who with, it hadnt occured to me that they might do that.

[Random]

maybe you could speak to your finance company and see if you can come to an agreement about getting new finance for a replacement vehicle? ive not tried it, i dont know how much success you would have.

[rameire]

Will have to get the garage to ring them on my behalf as the policy is in Mr Rameire's name and they won't talk to me, lol. Thats how I got the redemption figure this morning so it would defo be worth a try and I'm sure the garage would like the repeat business

Worth a shot though! Ta

[bazz26]

The car is the property of the Finance company until the last payment is made. With that in mind option 2 is out.

They will need to be informed that the car has been written off, the insurance company will probably pay them directly. Actually I'm not sure if the insurance company will even involve you the same way that they would if it were your own car. I.e. their assessor would make you an offer on what they think the car was worth and then you could haggle a bit to get more from them.

I think you just need to ensure that the insurance company don't undervalue the car otherwise you may end up paying the Finance company more, i.e. HP outstanding balance minus insurance payout amount.

[Kopparberg Strawberry and Lime]

Originally Posted by bazz26

The car is the property of the Finance company until the last payment is made. With that in mind option 2 is out.

They will need to be informed that the car has been written off, the insurance company will probably pay them directly. Actually I'm not sure if the insurance company will even involve you the same way that they would if it were your own car. I.e. their assessor would make you an offer on what they think the car was worth and then you could haggle a bit to get more from them.

I think you just need to ensure that the insurance company don't undervalue the car otherwise you may end up paying the Finance company more, i.e. HP outstanding balance minus insurance payout amount.

Apologies in advance if this sounds really silly but im just a bit lost in this case.

for starts lets hope everyone is ok and well and they get better, best of luck. not a nice thing to happen.

but lets say you take out a loan for a car for 20K and you have just a little more than half paid off. (10.5K) so there is 9.5K owed

the insurance is down for 20K (value of car)

should you not be getting the value of the car ? (20K)

i.e rest of loan paid and rest to you ?

like for example if my private car is 10K and its a write off completely, technically i should get 10K into my pocket for another car or a replacement ?

or in this case could insurance company arrange a replacement instead ?

sorry for confusing.

[190E2.516]

finance company will get whats owed to them first. if theres a balance that should be payed the you. what is the estimated market value of this car?

[rameire]

Originally Posted by 190E2.516

what is the estimated market value of this car?

Asked that at the Ford garage and they say between 10k and 10.5k cos the mileage was mega high on it, 11.5 if mileage was normal.

[rameire]

Originally Posted by Kopparberg Strawberry and Lime

Apologies in advance if this sounds really silly but im just a bit lost in this case.

for starts lets hope everyone is ok and well and they get better, best of luck. not a nice thing to happen.

but lets say you take out a loan for a car for 20K and you have just a little more than half paid off. (10.5K) so there is 9.5K owed

the insurance is down for 20K (value of car)

should you not be getting the value of the car ? (20K)

i.e rest of loan paid and rest to you ?

like for example if my private car is 10K and its a write off completely, technically i should get 10K into my pocket for another car or a replacement ?

or in this case could insurance company arrange a replacement instead ?

sorry for confusing.

I think we had the value marked down as 15k say, but its up to the assessor to give us their value on what it was worth pre-crash. Its his job to determine what we will get, not just what I put on the insurance form when I was filling it out unfortunately.

And thank you for your kind words, Mr Rameire will be ok in a few weeks, hopefully will get him home today fingers crossed, but he cant drive the motorbike for 6 weeks so I will need to sort the car out asap lol.