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Repossession threat due to company going into liquidation

Home Forums Car finance Repossession threat due to company going into liquidation

This topic contains 4 replies, has 2 voices, and was last updated by Avatar J 4 years, 1 month ago.

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  • #65132 Reply
    Avatar
    Gary

    My company owned a vehicle with a debt on it to MotoNovo, which was paid from my personal account. I transferred the car into my own name and two months later my company went into liquidation.

    I continued to pay the car loan.

    MotoNovo have just found out that the company went into liquidation and now want to repossess.

    I have paid 10 out of 48 payments. Any advice ?

  • #65135 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Gary. I think you will need to seek specific legal advice to review the contractual positions relevant to the agreement. Sorry I can’t be more helpful.

  • #65137 Reply
    Avatar
    J

    First of all, I should make it clear that I am not a lawyer. However, depending on your connection to the company that has gone into liquidation, the leasing company might be prepared to enter into a totally new lease agreement with you. However, they could insist that any arrangement goes as follows: they sell the car to a dealer (almost certainly leaving an amount outstanding on the finance agreement by the now defunct company); you then buy the car from the dealer as part of a new lease. The dealer will almost certainly want to make his normal markup from such an arrangement, and this could make it less than worthwhile for you to pursue this avenue.

    Bear in mind the existing agreement almost certainly will have come to an end automatically, given the company that was leasing it has gone into liquidation, which is why they will be concerned to get the vehicle back. Unless you have permission from the legal owner to drive the vehicle (the legal owner being the lease company), you should probably check that your insurance covers you in this situation. I’m afraid to say that it almost certainly will not (but better you know now).

    Hope this helps a little.

  • #65141 Reply
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    Gary

    Thank you. This is a HP agreement rather than a Lease but I guess the points are still very similar. We have asked if the loan will be re written in my name due to me being the guarantor, the one that entered into the agreement on behalf of the company, the ex director, the ex shareholder etc. The money has ALWAYS come from my personal bank account etc etc. But, they have refused to consider this scenario.

    I’ll explore the idea you suggested, thank you

  • #65142 Reply
    Avatar
    J

    I am going to guess that as a director and shareholder of the company in liquidation, the underwriters at the existing finance company might be inclined to view you and the company as the same in terms of risk, which is why they may be reluctant to consider putting a new agreement in your name. If this is the case, finding another company to finance the car might be your only option.

    As a heads-up, I would make sure you understand that still needs to be repaid on the loan and as well as the figure the dealer is offering to buy the car from the finance company. The difference will form the bulk of what the finance company will expect to recover from you as the guarantor. As you are a guarantor, I would be inclined to get some legal advice as there are possibly some other implications or ways forward that I am missing.

    Hope you manage to find a solution that works.

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