QLD Is Car Loan Considered as Secure Loan?

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Timothy Wagg

Active Member
1 February 2015
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Hi Forum.

I have a car loan that I am default on. I received a letter from the Finance company dated 5/4/16 Default Notice. I immediately rang them explaining I have a block of land for sale and will finalise the amount owing immediately.

Theale fell through and I rang the finance company again explaining this. I also advised them that I have another signed offer, which should be finalized eary July.

I received a letter of demand dated 7/6/16. This letter also states that interest will be charged daily. Also, after constant demands of Repossesion, I sold the car at a considerable under valuation and informed them. The finance company, although very good about my predicament, were not concerned with the sale.

I am on an age pension. They know this. Is this loan still considered as a Secure Loan? Where can I go from here?

Thank you.
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
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Where can I go from here?

Enter into a repayment plan with them that you can afford. Use proceeds from the land sale to pay the balance owing.
 

Victoria S

Well-Known Member
9 April 2014
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2,289
Hi Timothy,

Read the car loan documentation - it will state whether or not the vehicle was a security on the loan. If the vehicle is security for the loan and you have sold the vehicle I believe it can still be repossessed by the loan company because you didn't have effective title to the vehicle to sell it. The purchaser may then come after you for the value they paid for the car.
 

Timothy Wagg

Active Member
1 February 2015
9
0
31
Hi Timothy,

Read the car loan documentation - it will state whether or not the vehicle was a security on the loan. If the vehicle is security for the loan and you have sold the vehicle I believe it can still be repossessed by the loan company because you didn't have effective title to the vehicle to sell it. The purchaser may then come after you for the value they paid for the car.
Hi Victoria S.

The Finance Company hassled me into selling the car with their signed approval. The trouble was that I had to sell the car at reduced value which the finance company was aware off the reduced price.

I will again contact them. I have offered to enter an payment agreement but being on a pension I cannot pay a lot. Which they are not happy about. This is what I am asking that can they hold off without Daily Interest until Block off Land is sold.

Thank you for your reply Victoria S.