Car question.

My car is in the process of being written off,just waiting to here from the insurance company with the final settlement amount.

My question is about my finance agreement I've had the car for under a year and still have 4 years left to pay. I'm pretty sure the settlement won't be enough to end the finance agreement so what happens with the remaining balance?do I continue too pay my monthly payments or do I need to pay it off outright? If I have to pay it outright what happens if don't have the cash? Anyone been in this situation before ?any advice is grateful.

First thing to do is check the finance agreement. You might be paying a protection against this sort of thing.

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Originally Posted by Golden Fleece

First thing to do is check the finance agreement. You might be paying a protection against this sort of thing.

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I have read it. It wasn't very clear to be honest.

Did you not take Gap insurance? That covers the gap between the value of the car by the insurance and the outstanding amount in finance owed.

Ie car is worth 10k
Finance is 12k
So balance is 10k from insurance and 2k from gap insurance. Check you documents as the garages often sell it as part of your package.

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Don’t know the answer to your original question but I would advise not accepting the first offer from the insurance company. Challenge whatever figure they come up with and research all the various agencies that value cars, Parker’s, Honest John etc. and make sure that they are offering top dollar as a settlement. Assuming the damage to the vehicle is, in the insurers eyes, not financially viable to repair doesn’t mean it cannot be repaired. Unless you have seriously totalled it. There may be a route to get an alternative repairer and not their “preferred” repairers to fix the car at a less expensive cost.

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Originally Posted by Just Jimmy

Did you not take Gap insurance? That covers the gap between the value of the car by the insurance and the outstanding amount in finance owed.

Ie car is worth 10k
Finance is 12k
So balance is 10k from insurance and 2k from gap insurance. Check you documents as the garages often sell it as part of your package.

Sent from my SM-A520F using Tapatalk

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I don't have it,looking like a bad choice now.

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Originally Posted by Alfiembra

Don’t know the answer to your original question but I would advise not accepting the first offer from the insurance company. Challenge whatever figure they come up with and research all the various agencies that value cars, Parker’s, Honest John etc. and make sure that they are offering top dollar as a settlement. Assuming the damage to the vehicle is, in the insurers eyes, not financially viable to repair doesn’t mean it cannot be repaired. Unless you have seriously totalled it. There may be a route to get an alternative repairer and not their “preferred” repairers to fix the car at a less expensive cost.

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It could be repaired but I don't have the money to fix it just now.

Find a similar car for sale.

Same age, spec, condition and mileage.

Use the cost of thst to negotiate a settlement figure with the insurance company.

It's hard for them to argue that it's not market value when it's on sale.

Take the money and use it to buy another car and just continue with your payments as normal.

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Originally Posted by lord bunberry

Take the money and use it to buy another car and just continue with your payments as normal.

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I did consider that but the finance agreement is stating any money paid out by insurance must go straight to the finance.

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Originally Posted by Hibbyradge

Find a similar car for sale.

Same age, spec, condition and mileage.

Use the cost of thst to negotiate a settlement figure with the insurance company.

It's hard for them to argue that it's not market value when it's on sale.

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Thanks I'll look into that.

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Originally Posted by hibs#1

My car is in the process of being written off,just waiting to here from the insurance company with the final settlement amount.

My question is about my finance agreement I've had the car for under a year and still have 4 years left to pay. I'm pretty sure the settlement won't be enough to end the finance agreement so what happens with the remaining balance?do I continue too pay my monthly payments or do I need to pay it off outright? If I have to pay it outright what happens if don't have the cash? Anyone been in this situation before ?any advice is grateful.

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When I bought my current car they offered insurance against such an event to I assume it is an issue.