NSW Car was Repossessed - Still Pay Full Price on Car Loan?

[Jono86]

I had finance for a car that was $18000 (car loan). It got repossessed because I lost my job at the time and couldn't afford to pay. Now it has been repossessed, I am still paying back the full amount on the finance.

My question is, should that car not have been auctioned off because I was unable to pay and then the price it was purchased for taken off the finance? Or at least have my car in my driveway seeing as I'm still paying the whole price of the finance?

Because yeah at the moment I'm being asked to pay full price on a finance for a car that I don't even have in my driveway.

 

[Tracy B]

Hi Jono86,

Yes, this does seem unreasonable.

First, take a read of your hire-purchase agreement and see what it says about continued payments after repossession/breach. Is the company allowed to keep charging you under the contract?

Second, if they are, it may be considered a "penalty" in the eyes of the law. You should contact the company and negotiate for the payments to be cancelled and a fairer price charged (or refunded back to you). If they disagree, you can contact Fair Trading NSW. They are a free service that helps consumers (individuals like yourself) with disputes with companies in Australia.

 

[Jono86]

This was a little while and I am not sure if I have a copy of my hire-purchase agreement. Can I still ring and request one sent to me?

 

[Tracy B]

Worth a try. They should have a copy of the hire-purchase agreement.