Query - Non fault accident, finance nightmare
Discussion
Hi, details are a bit 3rd hand but here goes...
A family member has had an accident on a road in and around Newcastle. The car is new to them and had it less than a month, it's a couple of years old and hasn't even made the first payment. This is due next week. According to the initial query with the finance company the payment of course will have to continue and depending on the engineers report, valuation etc. this could be refunded.
The other party has admitted liability so the claim has been closed on their side and marked as informational, a hire car has been provided and all claim actions are against the other party policy.
The total settlement figure of the car is around £20k, this takes into account a rebate that's applicable for early settlement and takes into account interest that wouldn't be accumulated over a 4 year PCP deal.
They are worried that the valuation is going to come back much less than this settlement figure and through no fault of their own will end up falling short on the value; which seems really wrong given they haven't even paid the first payment.
Of course the ideal situ is that they simply settle the finance from the other party and they get to start afresh. No GAP insurance present, they are checking if they have anything to cover any uninsured losses but aren't confident.
Just seems like a really rubbish situ for them that was of no foul of their own. Final engineer report is still to be sent but so far the parts and labour for the damaged body bits are in excess of £10k, with suspected damage to the radiators / intercoolers / engine / clutch as can't get it started or select any gears.
No injuries thankfully, low speed accident but guess all the bits that are designed to take the impact did exactly that.
Should they invoke legal representation?
A family member has had an accident on a road in and around Newcastle. The car is new to them and had it less than a month, it's a couple of years old and hasn't even made the first payment. This is due next week. According to the initial query with the finance company the payment of course will have to continue and depending on the engineers report, valuation etc. this could be refunded.
The other party has admitted liability so the claim has been closed on their side and marked as informational, a hire car has been provided and all claim actions are against the other party policy.
The total settlement figure of the car is around £20k, this takes into account a rebate that's applicable for early settlement and takes into account interest that wouldn't be accumulated over a 4 year PCP deal.
They are worried that the valuation is going to come back much less than this settlement figure and through no fault of their own will end up falling short on the value; which seems really wrong given they haven't even paid the first payment.
Of course the ideal situ is that they simply settle the finance from the other party and they get to start afresh. No GAP insurance present, they are checking if they have anything to cover any uninsured losses but aren't confident.
Just seems like a really rubbish situ for them that was of no foul of their own. Final engineer report is still to be sent but so far the parts and labour for the damaged body bits are in excess of £10k, with suspected damage to the radiators / intercoolers / engine / clutch as can't get it started or select any gears.
No injuries thankfully, low speed accident but guess all the bits that are designed to take the impact did exactly that.
Should they invoke legal representation?
Thanks. Further detail from them is that no significant deposit was paid. They were vague but mentioned less than £500.
I’ll leave them to it now I think. They have it all in hand of the insurers and I guess the game begins.
Thanks for the input, I’ll update if anyone is interested and if I get any more detail.
I’ll leave them to it now I think. They have it all in hand of the insurers and I guess the game begins.
Thanks for the input, I’ll update if anyone is interested and if I get any more detail.
R32 said:
I thought you couldn't buy GAP insurance any more, that the government had put a pause on it being sold due to the poor value for money it gives?
If so, what do you do in this situation to cover the 'gap'?
This was their understanding too. They claim that the salesman at the time mentioned it as part of the usual after care stuff but that there were some conflicting views about its value. Who knows. If so, what do you do in this situation to cover the 'gap'?
In this particular situation they hope that the payout will clear the finance and put them back in a position to start again but that doesn't sound like how insurance would cover their losses. I dunno. They are OK and just have a few bruises and I guess that’s the main thing.
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