Looking on the (very) black side, can any one tell me what happens to the car /debt if the person who entered a PCP or PCH

agreement should die during the contract ? l ask because my wife cannot drive & would be unable to afford the repayments and/or balloon payment.I might add that I don't envisage an early demise but....just asking in case !

JKW

The car would get taken back and debt written off. Don't see why it would come out of your estate as it's not secured.

That is very black side indeed :(

Sounds like you need a hobby other than the Briskoda forum......

Very helpful, though. The same question occurred to me in respect of the Memsahib's new Octy when washing it last weekend. I prefer my DSG estate even if it is a Mk2, so if she shuffles off, back goes the hatchback!

Your should read the conditions relating to the contract, it may be possible to simply return the car but there may charges involved. Alternatively the car could form 'Part of your estate' and the contract enforceable to its contacted end, in which case your 'estate' would be liable for the outstanding charges in the same way as any other debt.

 

Read the contract or contact the company as it is not necessarily straight forward - or simply 'don't worry about it' unless you have a terminal illness or often take part in hazardous sports

Hate to say it but, a spouse is the only person that can be held responcible for a personal debt but, very few companies will persue a debt if told the estate has no funds.

 

Never done it on a car agreement but, did it for everyone when my mother passed leaving my father with little but a property, even Virgin eventually wrote the debt off.

Surely the debt is unsecured, so if the goods are returned and the value is in excess of the debt then it is sufficient to cover the debt it should be written off and finalised. Imho.

Very rare for the value of a car to be more than the amount owing, PCP maybe the last few months PCH never.

Debts need not be written off following death and can be recovered from the estate if the company sees fit. If this wasn't the case, those with a terminal illness could all grab a Bentley and live like a star for the last days. In reality it's bad PR to peruse a claim but I suspect that if there were large sums of money involved, they would do exactly that. If they didn't, those costs would be absorbed by other customers.

Hope I don't die in service, Swmbo will get 4 times my Salary and my Pension.

 

I ain't going first......... :no:

In England a debt incured by one spouse cannot be enforced against the surviving spouse in the event of their death unless it was a joint loan, or the surviving spouse acted as guarantor.

 

Debts are set off against the assets of the deceased spouse's estate. You cannot get probate (and so adminster the estate) until the aggregate net value of the estate is determined. Firstly any IHT liability has to be satisfied before probate can be finalised and the residuary estate can then be distributed.

 

Whether any debt exists as a result of a finance agreement depends on the terms and conditions of the original agreement. I would expect that if the car were to be sold or given back that there would be an amount due and enforecable against the estate.

 

If the estate has insufficient net assets the debt might be written off by the finance company if its not financially worthwhile persuing the estate.  However this gets very much more complicated if there is a shortfall (ie the debts being only slightly greater than the assets).  There will then have to be a distribution of the assets in so such much in the pound for the debtors. 

 

There is no sentiment involved.  I'm afraid finance companies do not usually look on widows and orphans as a charity they are willing to support voluntarily. 

A friend of mine who is 70 has a Nissan GTR on pcp , if he dies his family just hand it back

A friend of mine who is 70 has a Nissan GTR on pcp , if he dies his family just hand it back

 

So what happens to the debt due on the pcp agreement? Are you saying his estate would have zero value?

What debt ? The car will be worth more than the gfv , if anything his estate might get money back