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As guarantor you are potentially liable under the terms of the guarantee. If you daughter defaults on the remaining balance owing then the finance company can seek to recover any unpaid sums from you.
As to the understanding that your daughter would pay you back, this is a difficult position for you. Would you want to bring a claim against your daughter? It may not get that far, your payment of the £1000 arrears was nothing more than you were legally obliged to do under the guarantee. It would be down to your daughter's conscience to pay you back. I think you would struggle to force repayment legally.
Unfortunately being liable for payment of someone else's debts is one of the risks when standing as a guarantor.
I am sure this is not what you were hoping to hear but sadly it is the position based on your legal obligations.
Please let me know if you have any queries in respect of my answer.
Please can I ask you to positive rate/accept my answer.
if this is a HP arrangement, ownership vests with the finance company. it may be a breach of the terms of the hp agreement to scrap the car. why is this being suggested, how much is owing? how old is the car? how much is the car currently worth? why does the father want to scrap it? scrapping the car my breach terms of the agreement your daughter has with the hp company, she is only hiring the car until the finance is paid off in full. scrapping the car could lead to additional expenses which you could end up being liable to pay if your daughter defaults.
you could try to speak with your daughter and hp company to see if the finance agreement can be transferred to you so that on payment of the outstanding finance the car will become yours.