Several months ago my sons g/f crashed her 2 months old Mini and wrote it off. Her fault no third party involved. Insured fully comp. so not a problem. A week after the crash she got offered a new job with a company car. The insurance company have said that they will replace the crashed Mini with a brand new Mini, no cash settlement instead. So she will shortly have an unregistered Mini which she has no use for. (She cannot use it as her company car)
So what is the best way to dispose of this new Mini given that she still owes finance on the crashed one?
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Wouldn't the insurer jump at the chance of settling the finance instead of stumping up for a brand new car? This assumes the finance redemption amount will be less than the cost to the insurer of procuring the new MINI.
Ask them - it may serve both your purposes.
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I would think it will belong to the finance company if there is finance on the old one as it is a replacement for the old one.
As a matter of interest, how do you know it wil be unregistered when she gets it ?
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"As a matter of interest, how do you know it wil be unregistered when she gets it ?"
Insurance policy states that the replacement vehicle will be new, unregistered and supplied by a specific dealer.
Not sure of the exact figures but I think that she she owes about £13.5k on the car.
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It seems hard to imagine that she can not negotiate with the insurer for a cheque for the outstanding finance to be made payable to the finance co., and the balance paid to her. Has to be as easy as them buying her a new car, surely?
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The only sure way would be to settle the finance first.....bit chicken and egg.
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My guess is that "unregistered" means brand new and not pre-registered.
Son's g/f seems to have one of those policies that replace with a new car if it's written off in the first 12 months.
I'd have thought, though, that they'd at least have a conversation on the question of handing over to g/f and finance company what the car would cost them.
If they won't do that, it seems to me she's just got the problem of selling a brand new car. She's presumably already spoken to the finance company. What do they say?
Edited by Optimist on 13/05/2009 at 16:53
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Insurance policy states that the replacement vehicle will be new, unregistered and supplied by a specific dealer >>
Speak/write to someone at a very senior level in the Insurance Company, i.e. someone who has the power to use common sense and make discretionary decisions.
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Should be able to get a cash settlement instead, in my experience they will do this if you insist. However ..... they will only pay out the glasses guide value on a used MINI of the same age & mileage as the one she crashed at the time of the accident. This means she may not get the full amount to pay off the finance.
Where to sell a new unregistered MINI? Well I would start off by asking a MINI dealer if they want it
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In that case she may be better off getting the MINI.
Then spend a weekend outside a MINI showroom asking everyone who passes do they want a brand new one without having to involve the dealer........
Cue a new thread, 2 weeks down the line...... my friend was offered a brand new mini outside a showroom, is this a scam......
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I imagine the insurance company will be able to obtain a new MINI for less than a reasonable cash settlement for the crashed one.
Always worth trying to negotiate, but if the ins co is only paying £8K or £9K for the new car, that's all they will want to offer.
A job opportunity is a job opportunity, but I think the son's g/f has been a bit hasty here, and I suspect it will end up costing her a few thousand.
Expenditure anyone could do without, but possibly worth it in the long run if the job goes well.
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am I being thick here but if she sells the mini and still owes finance and then defaults on the payments, can't the finance company distrain on the car even if someone else, including a Mini dealer has 'bought it'?
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I think I'm being thick aswell, the insurance company will only pay what the cars worth or supply a new car. The finance is presumably worth more than the car ergo they won't be able to pay off the finance in full, only contribute. Even if they supply a new car the finance peeps would still have an interest in it making it illegal to sell it. Or is it ok nowadays to sell a car you owe money on?
Edited by mrsarcasm on 13/05/2009 at 18:46
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Yes and no...........Technicaly its illegal to sell a car on which you owe finance, but I am sure that most finance cos would have no issue with you selling to a dealer and the dealer settling with the finance co direct, if fact I imagine that this happens all the time.
I see no reason why the insurance co would not make a cash settlement as I cant see that they get a massive discount on a MINI which is far greater than you or I could get through a broker. Have they actualy refused this, or is it just a case of they think they are doing the right thing by replacing the car and removing GF's hassle in buying a new one?
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