Repossessed Cars FAQs 2011



Are there any hidden dangers in buying a finance repossessed vehicle?

Check the car is sound mechanically, it’s important to remember that dealers are also buying repossessed cars and selling them in their showrooms. If they can pick the bargains up from the auction houses and sell at a profit, then why can’t you? Remember that if you buy from an auction, there may be fees to pay so remember to factor these costs in when bidding.

Can you recommend a website for buying a repossessed car?

There are a number of websites available to buy a repossessed car. Sites such as Repossessed Cars provide details of where to buy the latest repossessed cars in the UK. If you are in the United States, visit the Government Auctions site.

Hi I purchased a car on finance. Unfortunately my partner became ill and I was not able to make my repayments as I had to give up work. The Finance company repossessed my car back in good condition. The vehicle was resold under market value and a bill for £1250 was then sent to me. Why am I the one who has to pay this? The company have their vehicle back and I have no control over the resale price?

When you completed your agreement with the finance company, the signed documents contain details of your loan amount and the value of the repayments. It also contains a statement which mentions that if you default on these repayments then you are reponsible for the difference of the amount you have paid and the amount still outstanding on the loan. The finance company will have resold the vehicle via a repossessed car auction and then deducted that amount from the outstanding money. Any costs incurred for repossessing the vehicle will also have been added. The balance is then £1250. As you signed the agreement at the time of purchase, you are liable to pay back the funds. The bank with whom the agreement was made, unfortunately have no interest in the car, they only want to recoup their money. Your circumstances whilst being unfortunate will not have any bearing on this repayment amount, the bank’s only concern is that this money is repaid.

My husband died recently and left his car on finance with an outstanding repayment of over £3000. The car was in his name and now there is a repossession order on it. Will this affect my credit rating? We have small 2 children, and already have many other bills to pay.

When your husband died so did the liability on the purchase agreement of the vehicle. It is more than likely the loan will be insured in the event of death, so you should contact the finance company and advise them to collect the vehicle. If the car was on his name, you have no liability for this loan, sorry to hear about the death of your husband.

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