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OLDFTB

Buy A Car...then Lose Your House!

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From this is money forums:

'Hi, A friend of mine had a car a few years back, ran into financial problems and gave car back to dealer. He had paid about 2k off the car and had 3 years left to pay. They sold the car....2 years later they demand interest for full 5 years of loan and outstanding capital of it. In total 7k. They have put a court order on his house and made him bankrupt (he owns half with his wife). They can't sell the house from under him as his youngest is 3 years old (they wait till 16 or non dependant), then they sell the house to pay the debt.

Is there anything he could do about this to stop him from losing his house? I said I'd post it on here as good advice is always offered.'

Ruddy hell! I'll maybe think twice about that 2 owner 1.6 LX Mondeo!

http://boards.thisismoney.co.uk/tim/thread...&message=105011

Is this really what this country is all about these days?

Edited by OLDFTB

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From this is money forums:

'Hi, A friend of mine had a car a few years back, ran into financial problems and gave car back to dealer. He had paid about 2k off the car and had 3 years left to pay. They sold the car....2 years later they demand interest for full 5 years of loan and outstanding capital of it. In total 7k. They have put a court order on his house and made him bankrupt (he owns half with his wife). They can't sell the house from under him as his youngest is 3 years old (they wait till 16 or non dependant), then they sell the house to pay the debt.

Is there anything he could do about this to stop him from losing his house? I said I'd post it on here as good advice is always offered.'

Ruddy hell! I'll maybe think twice about that 2 owner 1.6 LX Mondeo!

http://boards.thisismoney.co.uk/tim/thread...&message=105011

Is this really what this country is all about these days?

Seems to me there are deeper unmentioned problems going on there.

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I think the average Joe on the street doesn't realise that loan/credit card companys etc can get a court order on your house if you default on an unsecured loan. That would come as a shock to a lot of people.

I mentioned this at work a few weeks back. Know what?...they didn't believe me!

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

Edited by Scipio_Africanus

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

I hereby claim my £3m.

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Sadly many people do not realise how brutally quick bankruptcy can happen. My info comes from 3 years ago, but I understand it to be similar now. To avoid it, when issued with a bankruptcy petition by a credititor you have up to 8 weeks (a little longer if you can avoid accepting the personal issue of docs) to pay half the debt, the judge may give you another 4 weeks to pay the other half of the debt.

Obviously many cannot raise this money quickly enough.

There may be special circumstances like not being able to take the house due to the family as mentioned, but they can take almost everything else, bar tools of trade & bed / basic clothes etc. One way to avoid their attention is to be 'a man of straw' and have no asssets worth taking, so therefore not be worth suing for bankruptcy.

If its recommend to have 1% in your car I guess I won't be buying one of these then. http://www.saleen.com/saleen_s7_photo_gallery.htm

Back to playing Midnight Club 3 on the X Box.

Talk about cars, I just posted on the off-topic forum, the question as to whether this was the ultimate Schadenfreude website ?

http://www.wreckedexotics.com

particularly http://www.wreckedexotics.com/newphotos/bad/

Edited by Saving For a Space Ship

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Talk about cars, I just posted on the off-topic forum, the question as to whether this was the ultimate Schadenfreude website ?

http://www.wreckedexotics.com

I've been there before and left in tears, in more ways than one.

530i_20040515_002.jpg

This car wins the prize as the 1st crashed BMW 530i in China. Congratulations!

--

745_20030403_007.jpg

Car: 2003 BMW 745i

Location: Los Angeles, CA

Description:

According to the person who submitted this photo, the driver of this BMW was racing a Lotus on the Hollywood Freeway at 150 MPH when suddenly, his cat "Mr. Cuddles" jumped on him and obstructed his view. He totalled 4 other cars in the process.

Injury Report:

"Mr. Cuddles" didn't make it

:o:lol::lol:

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There must be some dodgy finance deals out there. With a traditional Hire Purchase agreement on a car it is a secured loan - it's secured on the car. If you can't afford it anymore then you return the car and the debt is discharged.

If you need to finance a car a traditional HP agreement gives you mouch more protection than an unsecured loan - and probably a better deal too as most unsecured loan APR's are a complete mathematical fiddle.

1% of net worth in a car? Meeting that and getting something with a realistic prsopect of getting through an MOT would be a challenge for most people!

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I've just bought a fantastic Ford Focus mk2 with no finance required, and it feels great ! :)

And anyway even if I did get it on finance - I've got no house to lose anyway !

No one can touch me ! :lol::ph34r:

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

:lol: In an ideal world :lol:

When I bought my car they explained to me how much of the finance I'd have to pay off before they would be unable to pursue me through the courts. They explained everything really clearly and answered all my questions. There was no pressure at all. I bought the car and had the finance paid off in full after three years.

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'1% of net worth in a car? Meeting that and getting something with a realistic prsopect of getting through an MOT would be a challenge for most people!'

I said or £1000, whichever is greater. No need to spend more than £1000 on a car.

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My understanding is that it's illegal to sell a vehicle with outstanding finance on it. If he gave the car back and the dealer sold it then surely the dealer has broken the law. Technically the car is still his.

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

Jesus!! - my pushbike breaks these rules :o

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They can't sell the house from under him as his youngest is 3 years old (they wait till 16 or non dependant), then they sell the house to pay the debt.

Is there anything he could do about this to stop him from losing his house? I said I'd post it on here as good advice is always offered.'

Is this really what this country is all about these days?

Yes but if they keep popping out babies they'll always have a dependent :)

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

and your car will be sh*te!

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I can easily pass the 1% test.

My car is worth £1300. A fine vehicle. I think many people don't realise how much car you can get now for a few hundred quid. Cars are far more reliable than they used to be, while second-hand prices have been plummetting.

New cars are an unecessary indulgence - I let someone else pay for the majority of the depreciation.

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I can easily pass the 1% test.

My car is worth £1300. A fine vehicle. I think many people don't realise how much car you can get now for a few hundred quid. Cars are far more reliable than they used to be, while second-hand prices have been plummetting.

New cars are an unecessary indulgence - I let someone else pay for the majority of the depreciation.

Quite agree about new cars - unless you keep them for a longer period.

Personally I like cars. I drive a nice 05 plate Audi cabriolet which is my pride and joy and took me years to aspire to. Finance is less than 50% of vehicle. My mortgage is less than 7% of our household gross income. Frankly I could afford the vehicle if it was twice the price but as it is it is well within my budget allowing me to save plenty.

Some people like smoking - I like my car. no problem.

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I'm beginning to think high street lenders are playing the 'second charge' system. I recently read that laws have been changed making it easier to get an unsecured debt covered by a second charge against a property.

Many homeowners who need a loan choose an unsecured loan even though it costs them more in interest than taking out a second mortgage because they are under the impression that this way their house is safe. But could it be that the banks are encouraging this - and keeping very very quiet about the ease of getting a second charge on the property because they are in a win win situation?

If the debt is serviced by the debtor - they get more interest than they would have by giving a second mortgage. If the debtor falls into arrears - they can swiftly convert it into a secured loan by having a second charge put on the property ... the interest still continues to mount up at the higher rate until the property is eventually sold - and the lender has basically had a debt not quite as secure as a mortgage - but pretty secure depending on the house equity and they get a much higher rate of interest.

In short, unsecured loans taken out by homeowners are never really unsecured at all.

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I don't see how the banks are going to lose from all of this. If people cannot pay back their credit debt or default on their mortgages then the banks stand to gain a huge slice of the UK housing market.

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From this is money forums:

'Hi, A friend of mine had a car a few years back, ran into financial problems and gave car back to dealer. He had paid about 2k off the car and had 3 years left to pay. They sold the car....2 years later they demand interest for full 5 years of loan and outstanding capital of it. In total 7k. They have put a court order on his house and made him bankrupt (he owns half with his wife). They can't sell the house from under him as his youngest is 3 years old (they wait till 16 or non dependant), then they sell the house to pay the debt.

Is there anything he could do about this to stop him from losing his house? I said I'd post it on here as good advice is always offered.'

Ruddy hell! I'll maybe think twice about that 2 owner 1.6 LX Mondeo!

http://boards.thisismoney.co.uk/tim/thread...&message=105011

Is this really what this country is all about these days?

I've never heard of a dependant stopping possession proceedings paticularly if the applicant is the trustee in bankruptcy. At most it delays proceeding by 1 year.

I'm only aware of instances of further delays where the dependant is disabled AND the property as been specially adapted.

Did the finance company take action to minimise their loss (and therefore there claim against your friend)?

Which vehicle finance company was it?

Edited by Solvent Celt

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General rule of thumb is that no more than 1% of your assets should be tied up in your car (or £1000, whichever is greater). If you spend £5,000 on a car you're saying that you're worth £500,000 after all debts have been paid off. Stick to that rule and your car shouldn't cause you too many financial problems.

I live in my car.

btp

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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