Family member passed away with car on finance, anyone have experience of this? Hi

[mayweather]

Sadly a family member has passed away from a cardiac event. No will has been made, there’s no real estate, just his car.

It was taken out through some car finance company with a lump down through a part exchange.

I’m inclined to let them take the car and be done with it.

However my partner wants the car, stupidly for sentimental reasons, regardless of cost….

The loan was over 5 years, I don’t think the interest on the loan has even been covered by payments yet.

So I’m interested to know how this is best dealt with?

If they give you a settlement figure, is this figure set in stone or is there wiggle room?

I’m cautious that the company will not have our best interests at heart, so all advice appreciated.

Thanks

 

[mk2driver]

Settlement figure will be set in stone but you will save a reasonable amount as the interest can only be charged to the day you settle instead of what was projected over the whole loan term

Given it was 5 years and probably at a reasonable high rate this will make a significant difference

 

[davyk31]

As above the settlement figure will be set so no negotiation. Pay that and the car is yours, they may offer a refinancing option if you need finance.

 

[Pumesta]

I’m inclined to let them take the car and be done with it.

First let me say I am sorry for your loss

In regards to the above it may not be a simple as that. Certainly the finance company can take the car, where they will sell it at auction, but if the amount it sells for doesn't cover the debt, then the deceased estate will be responsible for the difference.

If more that 50% of the total debt has been paid then you can use voluntary termination, this is where the finance company take the car and that the last you hear of it. The deceased estate can pay the difference between what has been paid and 50% if required.

 

[NI_Volvo_Nut]

I'll echo sorry for your loss.
As no will is in place, next of kin will be the executor of the estate. They should contact the finance company and notify them of the death. The estate will then be responsible for the debt (unless there is some sort of insurance on the loan, worth checking)
The finance company will usually allow 3 months to either pay or surrender the car.

 

[carmad.]

when my mum passed my sister phoned the finance company and asked could she take over the payments ( my sister had bad credit) they where happy the just want the money they don’t want the car ( and now my sister has a better credit rating )

 

[mayweather]

Thanks everyone