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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Just over 4 years ago I bought a new car from BMW, but

Customer Question

Just over 4 years ago I bought a new car from BMW, but in the last 12 months my financial situation has changed due to a significant change in my business environment.
I fell behind on my payments for the car and struggled to get back on top of this. At all stages prior to falling in arrears I kept BMW up to date and responded to any letters and calls.
There is an outstanding balance on the car of £14,000 and arrears of £2600.
I asked BMW if I could sell the car, which if authorised and given permission, I could sell the car for more than the money owed to BMW.
The car is in immaculate condition, fully serviced and MOT’d.
BMW are now taking me to court, to which I have to reply by Monday 17th August and let them know whether I intent to defend, admit or apply for a time to pay direction.
If BMW recover the vehicle, they will sell it through their own auctions and will not raise enough money to cover the debt. I am not in a position to cover the shortfall in this event and it will do BMW or me no good if the car is sold cheaply.
I would like some advice on whether to request a time to pay direction or to defend and ask the court to allow me to sell the vehicle and have any monies to be paid made directly to BMW.
In light of this information, to ensure the most positive outcome, what can I do?
It must be in the interest of everyone involved to ensure the maximum amount of cash is achieved through the sale of the car, without further accruing any further costs for all parties involved?
I look forward to hearing from you.
Yours sincerely,
Paul Haldane
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
What % of repayments have you made please?
Customer: replied 2 years ago.

Hi Alex,

I have made 43 of the 48 payments.



Expert:  Ash replied 2 years ago.
Thanks. You can't defend it as you have no defence, you either made the payments or you did not. You need to ask for a time order.
There is nothing wrong with you selling the car but any purchaser will want to make sure the finance is settled beforehand, so they may need to settle that direct.
But ask for a time order given you have made most of the repayments.
Can I clarify anything for you about this today please?
Customer: replied 2 years ago.

If I can demonstrate that I can sell the car with their permission and raise the full funds needed to cover the debt, will the court likely rule in my favour and allow me to do this? It will prevent any further costs being raised and will ultimately resolve this issue without further delays.

In the event the court does not grant the time order, what happens then? What action will be taken and what is recorded against me? Will I still get the option of just handing the car back to BMW without any further action being needed, as I have chosen not to defend the case?



Expert:  Ash replied 2 years ago.
Yes the court is likely to rule in your favour if you can show you can discharge the balance. If the court does not grant the order then they need to instruct bailiffs to collect.
Does that help?
Customer: replied 2 years ago.

Hi Alex,

I am in the middle of writing my letter to the court requesting a Time To Pay Direction.

Reading through the notes of the letter, is suggesting that I need to propose monthly payments, or state that I will pay the full amount by a specific time.

If I want to say that I can sell the car for more than the debt owed without incurring any auction or other fees, will I still need to offer a monthly payment whilst I am trying to do this?

What sort of time frame can I request for me to find a buyer and sell the car without leaving myself too little time in order to complete the transaction or being seen to ask for too much time to sell the car?



Expert:  Ash replied 2 years ago.
I would offer to pay in full by a specific time. You will still need some payments even if you want to sell it off. You can request 2 months and see what the judge says!
Does that help?
Customer: replied 2 years ago.

Hi Alex,

Thank you for your response.

Would it be possible for you to read the letter I have written and make any suggestions if you feel I have missed something?

Please see below.

To Sheriff Court House Aberdeen,

I would like to apply for a Time To Pay Direction to clear the balance owed to BMW Financial Services Ltd in full within 12 weeks.

If this is granted I will offer to pay £100 per month during this period.

I take full responsibility for the unpleasant and challenging financial situation I currently find myself in, which is a result of a major downturn in my business environment over the last 12 months.

In the build up to the challenging circumstances I currently find myself in, I informed all creditors including BMW of my hardship. I have always responded to any letters and phone calls and will continue to do so. Whilst the situation is most unpleasant, I intend to fully honour and clear all monies I owe as soon as my financial situation improves.

I have tried to seek permission to sell the car privately where I will be able to recover more than the money due and more likely clear the arrears also. There are a couple of car buyers that have already offered me close to £15,000 for the car and that’s without contacting other garages and dealerships.

The car is in excellent condition, it is fully serviced and up to date with BMW, it has a full 12 months MOT which was only completed last week and for it’s age, it is about 5000 miles less than expected at 44,000.

During the last phone call I had with BMW they agreed that by selling the car myself I would be able to raise more money privately than if they were to recover the vehicle and auction it themselves. Due to the situation I was in with the arrears, I was not able to speak to the recovery department until a certain date and then when I tried to discuss selling the car and making full payment to them, BMW said the account had now been passed to a different team and as such I could no longer discuss this with them.

If BMW recover the vehicle now I will be facing a balance on the amount owed because the car will be auctioned off at a lower price, there will be auction fees, recovery fees and very possibly further associated fees and costs.

I am already in an unpleasant situation and all I want to do is raise as much money for the car as possible to ensure the maximum contribution is made to the amount owed without incurring any further unnecessary costs.

The payment would be made directly to BMW Financial Services or their acting Solicitor/Agent. There would be no further fees or costs involved by any parties.

If the car is recovered and sold at auction, there will be recovery costs and charges, auction fees and any other associated costs added to this figure and at present I am not in any position to clear any shortfalls and this will then lead to further action being taken against me to clear the shortfall in funds not raised.

Since I have been in this situation, all I wanted from BMW was their permission and authorisation to sell the vehicle and raise the funds to clear the outstanding balance in full.

I already have a small list of companies that will buy the car now for more than the £14,017.34 due and I am more than confident that if I am given the requested time, permission and authorisation to sell the vehicle privately I will raise funds close enough, if not more than to clear the money due for the vehicle and the arrears.

No further action or unnecessary costs would be incurred by any party and the primary goal of BMW receiving the money owed to them would be achieved.

Expert:  Ash replied 2 years ago.
I would already say how many payments you have made and you are only a few behind .
Expert:  Ash replied 2 years ago.

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.