Sudden death of family member - car is on finance…
Discussion
Hi guys,
My partners father has suddenly passed away from a cardiac event.
He purchased a used car in 2022 via a part exchange and the rest of the monies owed was taken out via a motor finance company.
What I can’t figure out from some documents I’ve read was it a conditional sale loan or a pcp.
I’m thinking conditional sale as it’s payments to be made over 60 months….
I’ve never had a car on finance so I’m a bit lost, and not sure if I can settle the loan amount or will it be taken from us?
All advice appreciated
My partners father has suddenly passed away from a cardiac event.
He purchased a used car in 2022 via a part exchange and the rest of the monies owed was taken out via a motor finance company.
What I can’t figure out from some documents I’ve read was it a conditional sale loan or a pcp.
I’m thinking conditional sale as it’s payments to be made over 60 months….
I’ve never had a car on finance so I’m a bit lost, and not sure if I can settle the loan amount or will it be taken from us?
All advice appreciated
Contact the Finance company and explain the situation ( they will quite probably ask you to send a copy of the death certificate, make sure you get a few copies as you will need them for a few companies )
They will give you the options available to you, depending on the amount left they may even clear any money outstanding.
They will give you the options available to you, depending on the amount left they may even clear any money outstanding.
It is his debt to pay and seem as he has passed away, then there is no obligation of you to pay off the remaining debt. The finance company should come and collect the car but might offer you the car and take over the balance.
Personally I'd tell them to collect the car and wipe the debt. That way you aren't having to worry about it.
Personally I'd tell them to collect the car and wipe the debt. That way you aren't having to worry about it.
There appears to be close to 10k of finance left on the car, I need to ring them to be sure.
Has anyone been in the situation where they reduce the amount to be paid to save them taking the car?
I’d say the car is worth about 10k, reading the details and the very very high mileage for the year, he got screwed pretty badly. 65k on the car that was less than 3 years old at the time….what was he thinking.
Thanks everyone
Has anyone been in the situation where they reduce the amount to be paid to save them taking the car?
I’d say the car is worth about 10k, reading the details and the very very high mileage for the year, he got screwed pretty badly. 65k on the car that was less than 3 years old at the time….what was he thinking.
Thanks everyone
Hmmm...maybe an expert will be along shortly, but I don't think it can be automatically handed back on death.
It may be that suits the finance company, so all's fine. But if the car is worth less then the outstanding finance then the debt stays with his Estate and the finance company may pursue it.
By the way, if the car is stil being used then be careful with insurance - some don't allow the policy to continue.
It may be that suits the finance company, so all's fine. But if the car is worth less then the outstanding finance then the debt stays with his Estate and the finance company may pursue it.
By the way, if the car is stil being used then be careful with insurance - some don't allow the policy to continue.
So sorry for your loss, may he RIP
As per sheepshanks above the car will be part of the deceased estate and it will depend on whether there’s a will/executors or if goes to probate
I can’t see any obligation for any relative to take up the payments on the car
I’m sure the best way is to speak to the finance company as I’m sure they will be well used to this situation
Having recently lost my f-I-L who had a car that wasn’t on finance we found that his car insurance was invalid as soon as we informed the insurance co of his death so that is worth bearing in mind if the car is still being used
As per sheepshanks above the car will be part of the deceased estate and it will depend on whether there’s a will/executors or if goes to probate
I can’t see any obligation for any relative to take up the payments on the car
I’m sure the best way is to speak to the finance company as I’m sure they will be well used to this situation
Having recently lost my f-I-L who had a car that wasn’t on finance we found that his car insurance was invalid as soon as we informed the insurance co of his death so that is worth bearing in mind if the car is still being used
Edited by Earthdweller on Thursday 28th March 17:53
I went through this after losing my dad through COVID. He'd bought a BMW 330 about 3 months before he died. Although the car wasn't financed.
Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
When my Dad died I was going to take his old Bentley back to my house to sell it. I phoned the insurer, they somehow already knew about his death and had cancelled the policy. Anyway there was a bit of finance on it, but less than the value of the car. When I phoned them they were pretty relaxed about it, they offered to take the car and that would be that but they encouraged me to sell it privately and settle the debt with the proceeds and that's what I did
Dingu said:
Not necessarily. Call them, options are often pretty flexible in such circumstances to enable cover to remain.
Yeah what I meant was, you will have to contact them to continue the policy in whatever shape or form that takes. I found most companies once they found out I was phoning about a bereavement were great. Apart from the DVLA....Earthdweller said:
So sorry for your loss, may he RIP
As per sheepshanks above the car will be part of the deceased estate and it will depend on whether there’s a will/executors or if goes to probate
Well...sorry to be pedantic, but if the car is on secured finance such as HP or PCP then it doesn't form part of the estate as it's owned by the finance company. However any outstanding debt is down to the estate.As per sheepshanks above the car will be part of the deceased estate and it will depend on whether there’s a will/executors or if goes to probate
I've no idea what's normal procedure in these situations - it could be the finance company will be amenable to just taking it back.
Op, sorry for your loss and hope PH can be useful support.
One thing I would say is that everythingseems like an urgent crisis, but it soon turns into a lot of waiting.
Do the right things but don't rush and ignore anyone who tries to rush you.
I'd suggest arming yourself with a bit of info before calling the finance co.
At least get a WBAC offer for the car so you can compare that to a settlement figure from the finance co.
My brother was executor for an in-law. There was a car on finance, Settlement figure was close to WBAC value, an acquaintance bought the car for something over that, because it was a fair price for the car. If the deceased put in a substantial deposit/px the estate might have some significant equity in the car.
One thing I would say is that everythingseems like an urgent crisis, but it soon turns into a lot of waiting.
Do the right things but don't rush and ignore anyone who tries to rush you.
I'd suggest arming yourself with a bit of info before calling the finance co.
At least get a WBAC offer for the car so you can compare that to a settlement figure from the finance co.
My brother was executor for an in-law. There was a car on finance, Settlement figure was close to WBAC value, an acquaintance bought the car for something over that, because it was a fair price for the car. If the deceased put in a substantial deposit/px the estate might have some significant equity in the car.
CarlosSainz100 said:
I went through this after losing my dad through COVID. He'd bought a BMW 330 about 3 months before he died. Although the car wasn't financed.
Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
Sorry this is not correct. On the death of a cars owner the tax and insurance are imediately void even if someone else is a named driver. Good news though is you can sell the car and WBAC, Motorway etc. can buy it too just get the executor to sign the V5 . This sorts Probate too as you have an actual value to enter, you do NOT have to wait for probate to sell.Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
Sorry for your loss, hope you get a good value for the car. As long as you don't drive on the road the DVLA don't chase up about the new details that quickly, took me about two weeks to sort my Mum's car, friend/neighbour still not sorted 6 weeks after death but selling Aston Martin Vanquish is not easy.
P700DEE said:
CarlosSainz100 said:
I went through this after losing my dad through COVID. He'd bought a BMW 330 about 3 months before he died. Although the car wasn't financed.
Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
Sorry this is not correct. On the death of a cars owner the tax and insurance are imediately void even if someone else is a named driver. Good news though is you can sell the car and WBAC, Motorway etc. can buy it too just get the executor to sign the V5 . This sorts Probate too as you have an actual value to enter, you do NOT have to wait for probate to sell.Any insurance for the car won't be valid. It's obviously up to you if you tell the insurance company your family member has died. I didn't bother because the car was parked on a drive and I had no intention of driving it and we sold it quite quickly to a trader. I explained the situation to him and he arrived and took copies of the death certificate and the will which named me as the executor. I then cancelled the insurance.
The car will be part of the deceased estate which until you have probate you won't technically be able to touch. Again, by the sounds of it the value won't have much bearing on probate so it's up to you if you include it as part of the deceased estate. Probate is all done online and it's up to you or the executor if they fill in the box for vehicles....
Given the circumstances from what you say it would probably be much easier all round if you phone the finance company and go from there. They'll probably just take the vehicle back, and probably charge you a fee for the privilege.
As another poster has said, make sure you get lots of death certificates as they'll come in handy. And it's easier to get them at the start of the process then have to order more further down the line.
Sorry for your loss, hope you get a good value for the car. As long as you don't drive on the road the DVLA don't chase up about the new details that quickly, took me about two weeks to sort my Mum's car, friend/neighbour still not sorted 6 weeks after death but selling Aston Martin Vanquish is not easy.
This is what is online.
"Secured loans include a personal contract purchase (PCP), hire purchase (HP) or conditional sale. In this situation, the vehicle is not your property and belongs to the finance company until the last penny is paid off.
The executor of the estate is able to settle the outstanding debt and keep the car if there is enough money to cover the settlement figure in the estate. However, more often that not, this won’t be the case – especially if there are other large bills that also need to be paid.
Usually, the finance company will take the vehicle back and sell it at a trade auction. Whatever it earns at auction (after auction fees) is taken off your debt. If the selling price is enough to cover your debt, then the finance is settled. Usually, however, the selling price does not cover the total debt, so your estate will still owe the finance company whatever is still outstanding.
Another option with a secured loan is for the executor/administrator to enact a voluntary termination of your finance agreement. This requires you to have repaid more than 50% of the total amount payable, which you may have already done. If not, the executor can pay whatever is needed to bring the total paid up to the 50% point. The car is collected by the finance company with nothing further to pay, assuming you have complied with the normal conditions of voluntary termination."
Not straightforward then. Depends if the car is worth more than the outstanding finance, if so it's not too bad, if it isn't, then money is going to have to be paid out of the estate.
"Secured loans include a personal contract purchase (PCP), hire purchase (HP) or conditional sale. In this situation, the vehicle is not your property and belongs to the finance company until the last penny is paid off.
The executor of the estate is able to settle the outstanding debt and keep the car if there is enough money to cover the settlement figure in the estate. However, more often that not, this won’t be the case – especially if there are other large bills that also need to be paid.
Usually, the finance company will take the vehicle back and sell it at a trade auction. Whatever it earns at auction (after auction fees) is taken off your debt. If the selling price is enough to cover your debt, then the finance is settled. Usually, however, the selling price does not cover the total debt, so your estate will still owe the finance company whatever is still outstanding.
Another option with a secured loan is for the executor/administrator to enact a voluntary termination of your finance agreement. This requires you to have repaid more than 50% of the total amount payable, which you may have already done. If not, the executor can pay whatever is needed to bring the total paid up to the 50% point. The car is collected by the finance company with nothing further to pay, assuming you have complied with the normal conditions of voluntary termination."
Not straightforward then. Depends if the car is worth more than the outstanding finance, if so it's not too bad, if it isn't, then money is going to have to be paid out of the estate.
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