Discussion
My lease with the finance company ended on 31st April 2021. I managed to extend it for 6 months due to the pandemic and I have a new car on order.
My lease was then due to expire on 31st October, and I had contacted the finance company to ask for a further extension as my new car still isn't here. They denied this, but said they would defer the balloon payment until April 2022 - a further 6 months, and I would not be expected to pay any further monthly payments.
Yesterday I received a letter to say that the outstanding finance had been cleared and that they no longer had a financial interest in the car! My dealer confirmed that the HPI check is clear and there is no outstanding finance showing, and my account with the finance company online is showing as settled.
I'm wondering if this has happened to anyone else? Obviously I'm expecting a bill in due course for £12,000 odd, but shall I just sit tight until then?!
Also, does it mean I can freely sell the car? It has a mechanical problem and I'd actually quite like to get rid of it whilst prices are good!
Thanks 😊
My lease was then due to expire on 31st October, and I had contacted the finance company to ask for a further extension as my new car still isn't here. They denied this, but said they would defer the balloon payment until April 2022 - a further 6 months, and I would not be expected to pay any further monthly payments.
Yesterday I received a letter to say that the outstanding finance had been cleared and that they no longer had a financial interest in the car! My dealer confirmed that the HPI check is clear and there is no outstanding finance showing, and my account with the finance company online is showing as settled.
I'm wondering if this has happened to anyone else? Obviously I'm expecting a bill in due course for £12,000 odd, but shall I just sit tight until then?!
Also, does it mean I can freely sell the car? It has a mechanical problem and I'd actually quite like to get rid of it whilst prices are good!
Thanks 😊
ZX10R NIN said:
You know the answer to this but I can understand your curiosity & the need to want to see what happens 
I don't intend on not paying what is owed! I just wasn't sure how it worked given I've now received that letter. Who legally 'owns' the car? And am I able to freely sell it given there is no outstanding finance?!
Lottielou said:
My lease with the finance company ended on 31st April 2021. I managed to extend it for 6 months due to the pandemic and I have a new car on order.
My lease was then due to expire on 31st October, and I had contacted the finance company to ask for a further extension as my new car still isn't here. They denied this, but said they would defer the balloon payment until April 2022 - a further 6 months, and I would not be expected to pay any further monthly payments.
Yesterday I received a letter to say that the outstanding finance had been cleared and that they no longer had a financial interest in the car! My dealer confirmed that the HPI check is clear and there is no outstanding finance showing, and my account with the finance company online is showing as settled.
I'm wondering if this has happened to anyone else? Obviously I'm expecting a bill in due course for £12,000 odd, but shall I just sit tight until then?!
Also, does it mean I can freely sell the car? It has a mechanical problem and I'd actually quite like to get rid of it whilst prices are good!
Thanks ??
Are you sure that you have a lease, as it sounds like you have PCP finance, particularly with reference to the balloon payment and finance being cleared?My lease was then due to expire on 31st October, and I had contacted the finance company to ask for a further extension as my new car still isn't here. They denied this, but said they would defer the balloon payment until April 2022 - a further 6 months, and I would not be expected to pay any further monthly payments.
Yesterday I received a letter to say that the outstanding finance had been cleared and that they no longer had a financial interest in the car! My dealer confirmed that the HPI check is clear and there is no outstanding finance showing, and my account with the finance company online is showing as settled.
I'm wondering if this has happened to anyone else? Obviously I'm expecting a bill in due course for £12,000 odd, but shall I just sit tight until then?!
Also, does it mean I can freely sell the car? It has a mechanical problem and I'd actually quite like to get rid of it whilst prices are good!
Thanks ??
Have the finance company taken the £12,000 payment from your account?
If not, I suspect that the letter was sent to you in error, and the finance company will be back in touch with you again, once the error is spotted at their end.
Mandat said:
Are you sure that you have a lease, as it sounds like you have PCP finance, particularly with reference to the balloon payment and finance being cleared?
Have the finance company taken the £12,000 payment from your account?
If not, I suspect that the letter was sent to you in error, and the finance company will be back in touch with you again, once the error is spotted at their end.
I reckon the finance company will contact the op again when they realise their error. In the meantime my advice to the op is to do nothing. Just keep driving the car and keep your head down.Have the finance company taken the £12,000 payment from your account?
If not, I suspect that the letter was sent to you in error, and the finance company will be back in touch with you again, once the error is spotted at their end.
Sorry, yes it is a PCP not a lease!
I can't continue to drive the car as there is a mechanical gear box issue which is not repairable and requires a new gearbox - it will be about £4-5k to fix properly. I drive long distances for work and need something reliable, so was hoping to sell the vehicle as it is, buy a second hand car with the profits and part exchange that when my new car arrives.
The issue I will have is that if my new car isn't here before April, and I use the proceeds of the sale of my current car to buy something to tide me over, I might have a massive bill to pay which I can't do as the money is tied up in the car!
I can't continue to drive the car as there is a mechanical gear box issue which is not repairable and requires a new gearbox - it will be about £4-5k to fix properly. I drive long distances for work and need something reliable, so was hoping to sell the vehicle as it is, buy a second hand car with the profits and part exchange that when my new car arrives.
The issue I will have is that if my new car isn't here before April, and I use the proceeds of the sale of my current car to buy something to tide me over, I might have a massive bill to pay which I can't do as the money is tied up in the car!
Lottielou said:
Sorry, yes it is a PCP not a lease!
I can't continue to drive the car as there is a mechanical gear box issue which is not repairable and requires a new gearbox - it will be about £4-5k to fix properly. I drive long distances for work and need something reliable, so was hoping to sell the vehicle as it is, buy a second hand car with the profits and part exchange that when my new car arrives.
The issue I will have is that if my new car isn't here before April, and I use the proceeds of the sale of my current car to buy something to tide me over, I might have a massive bill to pay which I can't do as the money is tied up in the car!
You need to contact the finance company and ask for clarity, you cant sell the car if you havent paid off the final payment its not yours.I can't continue to drive the car as there is a mechanical gear box issue which is not repairable and requires a new gearbox - it will be about £4-5k to fix properly. I drive long distances for work and need something reliable, so was hoping to sell the vehicle as it is, buy a second hand car with the profits and part exchange that when my new car arrives.
The issue I will have is that if my new car isn't here before April, and I use the proceeds of the sale of my current car to buy something to tide me over, I might have a massive bill to pay which I can't do as the money is tied up in the car!
even if its hpi clear does not mean your agreement has been settled, Also you should inform the company if the car has a running issue, if it does go back to them and needs a new engine, you will need to pay for that.
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