Hire Purchase Refinance

cave_dweller

Hey, hoping to get some advice on refinancing a hire purchase agreement...

My Dad died suddenly recently. :( He had his car through a hire purchase agreement with Toyota. He had it only one year so it's not near the half way point. My sister would like to keep the car and refinance it. Could anyone tell me how this would work? Is it a total new agreement where she'd be expected to pay another deposit on it and agree a new monthly rate? Or she'd maintain the same monthly payment amount and things would move into her name? We're totally clueless and haven't found Toyota very helpful. They've just said we should sign a form confirming the option we'd prefer and contact a dealer. We'd like to have a little info before contacting anyone so any advice is appreciated.

bazz26

Sorry for your loss OP.

I'm no expert but my understanding is that the hire purchase debt needs to be settled as part of your late father's estate unless it was a joint agreement or there was a guarantor where that person would be responsible for it. Your sister could not just continue to make the repayments as is.

If your sister wants to take over the payments then the family will probably have to settle the existing loan and then starting a new agreement with the bank. But she doesn't have to stick with the bank your father has the hire purchase agreement with. If she can get a better rate from somewhere else then she can look at taking that loan out to settle and take over a new hire purchase agreement on the car.

Best thing to do is talk to the hire purchase finance company/bank and see what your options are as your not the first in the situation, but they may require the executor of your late father's estate to be involved too. They most likely have a formality for these situations.

Water2626262

Sorry for your loss.

Get back on to Toyota. There will be an option to takeover the payments but your sister has to be credit assessed and prove she can pay it. It would be the same repayments and term.

Mad_Lad

Condolences on the loss of your Father.

The finance company is entitled to get their money from your Father's estate, if he had no estate they have nothing to get but they might be entitled to take the car.

The finance company is entitled to sue his estate for money owed.

Your sister can't take over payments as a new agreement will have to be reached.

Credit union loans are different, if you die the debt dies with you.

Contact the finance company but it's likely they won't agree to a new contract on the car and will probably send it to auction but you never know.

Mad_Lad

https://www.boards.ie/discussion/comment/122278252#Comment_122278252

If they agree then it wouldn't be a take over it would be a new contract, but yeah, she'd have to go through all the checks with the finance company.

JVince

Go to the dealer that the car was bought from. They will have a direct contact with Toyota Finance.

As it a Hire Purchase, Toyota still own the car until final payment.

Assuming your sister has reasonable credit record they will most likely create a new agreement than mimics the remainder of the old agreement.

They may ask for something signed by the executor of the estate and likewise the executor may ask if there's any residual value worth noting. EG if car was worth 20k today at trade value and remaining finance was 15k, then the executor will need to note this 5k value as part of the estate.