Voluntary Surrender of Vehicle

[davlodge87]

Hi everyone!

 

Sorry if this has been asked time and time again. I can't seem to make sense of what I am liable for.

 

I took out a HP agreement with a company called Moneyway through CarCraft in 2012. I needed the car for a new job which would easily enable me to pay for the car. Long story short, i think two payments were made on time and then I slipped into arrears of around 3 months due to the change of employer and lower training wage.

 

I spoke with Moneyway on occasion about getting back on track and they wouldn't agree to the timeframe i was asking for to get back on top with the agreement. So rather than go down the Repossession route, I was advised to voluntarily surrender the vehicle as I believe a default noticed has been issued by this point. My idea was to surrender the vehicle and set up a repayment plan for the debt.

 

Original finance was for £7500 which with the interest over the duration (5 Years) was going to amount to somewhere in the £12k area.

 

The car was collected and sold at auction for around £4k and now I am being chased for the princely sum of £8k+.

 

I am currently paying £145 pcm but would like to enquire as to what I am actually liable for. As I had only made a few months worth of payments I am nowhere near the third or half way mark of the agreement.

 

Am I liable for the whole amount of the agreement minus the cars value at auction?

 

Many thanks for your time.

 

Dave

[garage flower]

 

Am I liable for the whole amount of the agreement minus the cars value at auction?

 

 

Yes. You agreed to pay them £12,000ish over 5 years and you are liable to do so regardless of whether you have the car or not.