Help!! I have one more payment to make on my 5 year trust deed, been a nightmare and now have to pay £1100 to keep my very old car. I need to sell it but need to know can I sell after my last payment or do I need to wait until the official discharge which could take 3-6 months, by then my car will need MOT'd again... I've had to borrow money from family and want to pay them back ASAP, planning to use the funds from the sale from this. I've emailed the company but could be ages before they get back to me. I have ADHD and dyscalculia and the original company, CWF, were awful, left me very confused about the payments and kept changing the amount. I was told I wouldnt need to pay extra in to keep it. Now I'm worried about any potential balloon payment from the car finance company. So far I've paid £12,000 for a car which was valued at £5000 5 years ago!! thank you
Hi oystergirl. Could you clarify please - what kind of finance is/was the car on? Have you checked the finance agreement to see if there is mention of a balloon payment?
If there was a balloon payment to pay then it is very unlikely that you would have to pay anything in to your Trust Deed in respect of the car as it wouldn't belong to you anyway. More likely the car is now yours outright, in which case once you have paid the Trustee what was agreed then you should be able to sell it as planned.
Hi Kevin. the contract says fixed sum loan agreement ? mentions a balloon payment of £2724 but thats after 48 months, i've been paying it since december 2016! when i got it i presumed it was PCP and only found out it wasnt when i signed up for the trust deed. so can i sell it after my last trust deed payment?
If it was a fixed sum loan agreement then it should have been included in your Trust Deed along with your other debts and you wouldn't pay any further payments towards the finance company. Did you continue to pay this to the lender after entering the Trust Deed? How do you mean you have paid £12k for a car with £5k?
Hi Kevin. Yes, the car was included in the overall debt, I was told about £200 of the monthly debt payment was going towards paying off the car, which now doesn't really make any sense. The car was valued by the trust deed people as only being worth £5000 but when i counted up 5 years x £200 i paid in £12000 towards it. I managed to get hold of someone in the complaints department, who took it to the insolvency practitioner. I got the impression that a lot of what they told me in the beginning was wrong or very misleading. Thankfully they have said i dont need to pay anything else!! after paying over £500 a month for 5 years I'm so glad!
Glad you got it sorted out, oystergirl. A Trust Deed normally runs for only 4 years and you have to pay whatever you can afford. It is only after that that assets such as cars can be paid for so that they can be retained. So I suspect the £200pm figure for the car may relate only to that additional 5th year. Do you have other assets? If not, I think it might be worth asking your trustee for a more detailed explanation of exactly what the extra £6,000 you paid in the last 12 months was for. It may be that you have paid ore than you needed to.