I know if you need the car to get to work they will let you keep it - but that's usually if the car on under Hire Purchase, as this car is on a loan agreement I think Santander will have to be counted as one of the creditors...

Also I know the car has to be of reasonable value - I'm not sure what the limits are but if the balance is still £13,700 then they may class it as being over indulgent - I am not 100% sure though so will let one of the pros help you with the details.

Thanx for your reply. The car needs to be counted in and I need it for work defo don't want to give it back I don't want to be left with a large sum to come up with at the end however.

Hi both

It depends on the value of the car I suppose. You are correct, the finance company become a creditor with no repo rights.

Mark

Thanx mark. Are you referring to the value of the car at the end of the trust deed? I UBS only made 9 payments to the car.

Can you advise how my property may be dealt with? If there is no equity just now and there is in 3 years what is likely to be expected? Thanks all

I have almost the exact same situation, my car is worth less though. My loan for the car was unsecured and therefore Tesco in my case became a creditor. My understanding now was that once the 3 years is up, I would have to pay back any value in the car which is over £3,000 or sort out some arrangement to have this money paid back over time. Example Car is worth £4,500 when TD is complete, they will be looking for £1500 to be paid back some how. Not sure if there is a value that your car must be under at the start to allow you to do this though, Don't imagine the would allow you to drive a Ferrari lol

That is along the same lines as the advice I have been given. Not sure where the 3000 comes in though?? It might solve a problem now but I don't know whre I'll get the money in 3 yrs from now!! I'd rather have a porsche anyway ha ha

It used to be you were allowed to have a car that was not worth more than £1000, now it has changed to £3000. I don't know what the rules are for allowing you to keep your car when the value is more, other that needing it for work. I'm fortunate that in 3 years my car will prob be retired and so won't have to pay this money. 106k miles just now and TD has not started yet.

Hi Prenticebaby

You need to make sure you have all the answers to your questions before signing a Trust Deed and that you fully understand what is required of you.
The unsecured car loan will be included as a creditor in the Trust deed and the car will be valued usually towards the end of the 3years, depending on how much it is worth you could be required to buy a cheaper one and pay the balance into the trust deed.

With the equity you need to get in writing how the company will deal will deal with any equity, some deal with it at the start and some a the end of the Trust Deed.

You only need to look at some entries on the forum to see how much trouble and worry the equity issue causes. You are right to be asking these questions now before signing

Hi TDA

Thank you for your advice. Before proceeding with the T.D i will ensure any information in relation to the property and car is detailed in writing.

Do you know anything about the £3000 that skintally is referring to for the valuation of the car at the end?

Are companies normally happy to provide these details in writing as well as the monthly contribution details?

I have been exploring all avenues for 3 months now and becoming increasingly desperate to get something sorted out.

Any advice is welcomed.

Thanks

The car will be valued as an asset towards the end of the Trust Deed and if it is over a certain value you can be required to pay the difference into the TD or sell the car, buy a cheaper one and pay the balance into the TD.

Now the value at which they will expect you to do this can vary from company to company.

How much do you think the car will be worth in 3 years time?

A trust deed company should not have a problem explaining everything to you in full and if necessary providing everything in writing.

Do you know anything about the £3000 that skintally is referring to for the valuation of the car at the end?

Yes - if your car is worth £3000 or more by the end of the Trust Deed you will be required to pay the difference in value. So for a £4,500 car at the end you would either have to continue paying till you pay off the £1,500 difference or pay the £1,500 in a lump sum. You may also sell the car and give them the payment.

Are companies normally happy to provide these details in writing as well as the monthly contribution details?

The Trust Deed is a legal document. The details are all set out within the document and you agree to it when you sign it. The advisor should talk you through the issues around the house and the car - although it seems a lot of companies don't mention the deal with the car - so make sure you read the documents to see if there is any reference... Also feel free to keep asking questions the company will gain from this too - they aren't doing it as a favour. Only when you feel happy sign on the dotted line...

Hi TDA

Thanks again for your prompt reply.

It's probably worth about 8500 - 9000 at present. In 3 years it might be worth about 4000 maybe a bit more, i'm not sure how much is allowed for depreciation.

I need to sort out bank accounts etc so have agreed to do this and then get back in touch with the trust deed company who I have been referred to for advice.

Thanks again

The Trust Deed company may use something like Parkers car guide for a valuation.

Thanks ScotLad. The Trust Deed itself is double dutch to me!! I would want a written letter in plain English detailing the £3000 in relation to the car and also how the equity on my property will be dealt with personally. I'd like to be on the safe side of caution rather than have sleepless nights for the next 3 years!!

Thanks for your advice.