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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71050
Experience:  Over 5 years in practice
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i have sent my car back to the finance company having paid

Customer Question

i have sent my car back to the finance company having paid over half as in the terms of the agreement the car is a non runner they are now asking for 1000pounds to cover the difference in what i owe because they can only get 200 pounds for the car are they right in doing so
Submitted: 4 years ago.
Category: Law
Expert:  Jo C. replied 4 years ago.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

On what basis have you returned this please?
Customer: replied 4 years ago.
on the basis i couldnt afford to keep up withrepayments
Expert:  Jo C. replied 4 years ago.
I see what you mean.

Does the contract allow you to hand it back?

I suppose they have accepted it anyway?
Customer: replied 4 years ago.

yes the contract allows me to send the car back because ive paid more than fiftypercent of the agreement the problem is the engine is broken needs new one .if the engine had been ok the car would have been worth 1000pounds. the finance company have taken it to the auctions and got 200pounds for it therefore they want the differance 800pounds to 1000pounds to settle the agreement can they do this

Expert:  Jo C. replied 4 years ago.
Thanks for the information.

I am sorry but I cannot give you good news then. I’m afraid you are in difficulty here.

Ultimately you were free to give the car back under the contract and indeed you did. However, the problem is that a car is only worth what it is worth. If the engine didn't work then obviously that reduces its value hugely.

Unfortunately you are liable for the difference. There is an obligation upon them to try to get a fair price for the car but all that amounts to is setting a sensible selling price at an auction and if this car had a faulty engine, they cannot be criticised.

I'm sorry this isn't the answer you wanted but it is the position that you face and I have a duty to inform you truthfully.

Hope this helps. Please let me know if you need more information.