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New Member

4 Posts

Posted - 06 January 2019 :  21:20:31  Show Profile  Reply with Quote
I entered in to a TD in May 2018 and at that point I thought I had a car on PCP but it wasnít .. it was some sort of loan agreement and was basically put in to the trust deed. The car was valued at £4150 odd pound so basically £3000 was put into the TD and the other £1150 odd will be paid off by the trust deed going on slightly longer than the four years (hope I make sense so far). Basically at the time I asked if it meant I could sell the car (as itís too small for our needs now) and they said it would be fine to sell but If I sell the car for the valued amount (4150) and buy a car for say 3000 then the 1150 would be required following the sale as itís surplus.

My problem is what if I canít sell the car for itís value (and also the fact it will have lost value by now as cars are always losing value) .. does that mean Iíd have to sell the car to buy a new one but make up whatever I sell it for under what it was valued for in the TD (£4150 odd) I hope this isnít too confusing to answer!

TDA (Debt Adviser)
Trust Deed Expert

12961 Posts

Posted - 07 January 2019 :  09:06:44  Show Profile  Reply with Quote
Hi K1991.

This is one to talk through with your trustee I think.

My guess is that they'll ask for any surplus (over £3,000) to be paid into the trust deed, and that will then reduce the extension to your trust deed accordingly.

It's their call on this though. I doubt they'll be inflexible.

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Kevin Mapstone
Trust Deed Expert

3740 Posts

Posted - 07 January 2019 :  09:11:42  Show Profile  Reply with Quote
I think Trust deed Assistant is probably right. As long as you make extra payments at the end to make up any shortfall then it shouldn't matter if the car fetches less than the £4150 originally estimated.

It will need to be discussed with the trustee first though.

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Sharon Toal
Trust Deed Expert

351 Posts

Posted - 07 January 2019 :  15:38:43  Show Profile  Reply with Quote
I agree with the points made above. The trustee has a duty to ingather the value of the assets outlined at the start of the process.

Sharon is no longer posting in the forum.
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New Member

4 Posts

Posted - 07 January 2019 :  19:08:19  Show Profile  Reply with Quote
Thank you all.
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