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Topic starter
14/11/2013 2:12 pm
Hello
Looking for some guidance or advice. I have 6 months left of a 3 year trust deed and at the start of the TD I was allowed to keep my car for work. The car was valued to be worth £5,000 at the end, I was told I would need to pay £1,500 at the end to cover the difference between what my Trustee would allow me to keep (£3,500) and the final valuation. There was finance on the car (not HP) and this was about £8,000 at the time. The outstanding finance was taken into the TD.
My car was stolen 2 weeks ago but it has been recovered. The insurance company are now saying they would like to treat this as a total loss as the cost of repair is more than the cost to settle as a write off. They have initially offered £6,500
My question is, if I accepted the settlement of £6,500 how much of that would I expect to be allowed to keep in order to replace the car with another one? Can the trustee decide to take all of this and leave me with nothing?
Thank you
14/11/2013 3:44 pm
Hi Jamie12,
It sorry to hear about your car being stolen. I have a friend who was selling his car recently and the buyer took it on a test drive and never returned. The car has yet to be found but thankfully the insurer paid out on the claim.
I think this may come down to the individual decision of your Trustee and the only way to find out will be to put a call into them to let them know.
Your Trustee could look at the scenario that was based on what was agreed with them with the original car. Anything above £3,500 was not taken into consideration and anything above was. They could use this same method when looking at the insurance payment you will stand to receive. They could allow you to retain £3,500 and the other £3,000 would be ingathered into the Trust Deed.
As we always say it's about trying to find a balance when it comes to things like this. I assume you may need the car for work/personal purposes and therefore being left with no vehicle wouldn't be ideal. I would be surprised if the Trustee would look to take all of the money and not allow you some to purchase a replacement vehicle.
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