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Write Off - No Insurance - Finance - What to do? [vic]

Discussion in 'Politics, Laws, Government & Insurance' started by cbwolf, Sep 23, 2009.

  1. Hey guys,

    A short time ago i wrote off my bike while riding on a private track and consequently was not covered by my insurance. Due to being an idiot - i did not think to take out track insurance.

    My bike is currently under finance by YMF who i have now notified of the write off and they have told me i need to pay off the total balance remaining immediately - some $9,000.00 odd. Now, i can't afford this however i offered that i'm more then happy to continue with the direct debit lodgement arrangements that i've been paying for the past year however they've said that is not acceptable.

    I've sold the wreck to pickles for $1,200.00 which i have instructed them to pay YMF which they are in the process of negotiating. However, the remaining $8,000.00 or so is up to me.

    Just wondering what my options are here from a legal standpoint? Can they take me to court? They told me i should get a loan from somewhere else to cover the remaining finance amount but i'm reluctant to do this. Is it not possible for me to pay off the remainder on a monthly basis to them?

    Any help would be appreciated.
  2. Re: Write Off - No Insurance - Finance - What to do?

    That's kinda ridiculous on their part. I understand that they could normally repo the bike if you stopped paying, but still…
  3. Re: Write Off - No Insurance - Finance - What to do?

    I can't see how you aren't allowed to continue making your payments as per original arrangement? To me it doesn't make sence that they want the total remaining amount pronto. It just doesn't sound right or fair. Contact the insurance ombudsman for help if need be.
  4. Re: Write Off - No Insurance - Finance - What to do?

    Um, it should be in the Disclosure statement/fine print of the contract you signed. If it mentions paying the whole amount in full in the event of a write off, you are fairly up shit creek. If it dosen't mention it, i think you may have a case. Either way, speak to a lawyer. Most will give you half an hour free to sort out whether you have a case or not. Cheers.
  5. Re: Write Off - No Insurance - Finance - What to do?

    if you had not of sold the bike you would be able to keep paying the months payments.....but once you sell a bike under finance you have pay out the remainder....or atleast that is how i thought it worked, but like other say your PDS will tell you....either way couldn't you have fixed it up.....i mean how bad was it?
  6. Re: Write Off - No Insurance - Finance - What to do?

    It will be a condition of your loan that you had full comp insurance on your bike for the duration of your loan. As you no longer have a bike you no longer have a insurance policy therefore breaking the conditions of your loan. It sucks yes, but that's the way it's done.

    Your finance company will take you to court if you do not settle on the loan immediately so my advice is to find someone else who will give you a unsecured loan so that you can pay back your current financer otherwise you'll be dealing with this for 5 years after you settle the loan (bad debt, black listed)

    Someone above said contact the insurance ombusman.. This wont help, your problem is with the finance company not the insurance company.
  7. Re: Write Off - No Insurance - Finance - What to do?

    Sorry about my link there, my mistake, the others are right, after I posted up my link it hit me that it has nothing to do with insurance.

  8. Re: Write Off - No Insurance - Finance - What to do?

    If the bike is not in a condition that they deem good enough then yes they are well within their right to request that the remaining financed amount be repayed at once.

    If you were to default on your payments then they have nothing they can reposses off you which they can sell and reclaim their money.

    What I suggest you do is apply for a personal loan (which not secured or attached to anything) for the amount needed and then use this to pay off the financier.

    Another suggestion is to do the following:

    Apply for a credit card for about 10k. This credit card must have a 12month or more 0% or low rate balance transfer feature. Use this to transfer a cash balance from another credit card. You will then have the cash to pay of the loan but a 9k credit card balance on a low rate. Use the cash to pay off the loan in full and then pay off the credit card (at the 0% or low rate) at a slower pace. DO NOT USE THIS CARD FOR ANYTHING ELSE and MAKE SURE YOU PAY BEFORE THE BALANCE TRANSFER TIME RUNS OUT. Otherwise you will be hit with 20% interest.

    Let me know if you need more info.
  9. Re: Write Off - No Insurance - Finance - What to do?

    I haven't heard this?
  10. Re: Write Off - No Insurance - Finance - What to do?

    I did have full comprehensive insurance on the bike - which didn't cover me off road. I had a skim through my PDS last night (not with me at the moment) which specifically said insurance wasnt required for track use.

    As far i can see, i fulfilled what was required of me from the contract, the bike has been written off, the proceeds of the bike are to be paid to YMF (they can still get the bike from Pickles if they want it themselves).

    I'm happy to keep paying them monthly as previously, and i mean, if they do take me to court, wouldn't the court just order me to make payment instalments if i can't afford to pay it up front (which i cant) which is exactly what i'm proposing to them to do?

    I'll read my PDS when i get home, but it just seems a little silly to me is all on their part.
  11. Re: Write Off - No Insurance - Finance - What to do?

    What i meant is that if if written off or there is unrepeared damage to it. They need the bike in a condition they can sell for at least what they are owed.

    If insurance can weezel out of paying up then the financier can do what the like with respect to the above.
  12. Re: Write Off - No Insurance - Finance - What to do?

    Even if you we'rent on a track. If they are able to prove that you we're being stupid like doing wheelies or burnouts and you stacked or just not riding in they way you're supposed to then they will try to get out of paying up.

    Generally the insurance companies will do whatever they can to not have to pay up. But yeah just check ur PDS for detailed info.
  13. Re: Write Off - No Insurance - Finance - What to do?

    I have been in the same situation as you but with a car that someone wrote off while being over .05 which voids comp ins (I wasn’t even in the bloody thing!)

    Here's what I did.
    • I notified the finance co (Esanda).
    • Got written permission from them to sell to a wrecker and they supplied the transfer details. (you are not allowed to sell until they say so)
    • After they demanded 15K on the spot I negotiated a double repayment deal (I had been a long term client through several cars)
    • I had supporting documents from my employer stating my income and my accountant saying I could make the payments.
    • I bought a shit heap for cash (that’s still going 6 yrs later lol)
    • I have since bought using Esanda finance again and was approved without a hitch but I did and do protect my credit history.
  14. Re: Write Off - No Insurance - Finance - What to do?

    You'll probably get a better rate on a personal loan than the finance anyway, so just go that way.

    Even though they have threaten to take you to court they will be reluctant to do so as it will cost a lot and the arbitrator could end up only requiring you to pay only $10/week or similar.

    If they have closed your account and won't allow you to pay electronically, then send them a cheque once a month. If they refuse to accept it then it won't bode well in court and they know it. don't allow them to charge you extra interest just because they won't accept your money.

    And for anyone else in this situation: pull the bike apart and sell the parts on e-bay, rather than selling the whole bike to an auction site. The engine alone would have got more on e-bay than you got for the whole bike.
  15. Re: Write Off - No Insurance - Finance - What to do?

    I dunno if there's much weezeling out of anything from insurers on this. I think most people won't cover your bike on track days?
  16. Re: Write Off - No Insurance - Finance - What to do?

    Do this. I've taken advantage of this for some money I've needed and know I will pay out within 12 months. Personal loans are a killer at around 14%. My card is 3.99% for 12 months and that was always going to be a better option for me.

    Presuming you take the credit card route, DO NOT draw whatever you need as cash. You will immediately be up for the 16-19% rate if you do. Make sure it is a purchase.
  17. Re: Write Off - No Insurance - Finance - What to do?

    1) Take your plates off before a track-day. Some insurance companies send people to record the rego's of bikes crashed on the track so they can avoid paying claims.

    2) If you crash on the track, cart the bike off to a quiet public road and shove it down an embankment, then ring your insurer.

    3) Finance companies lend money on the understanding there is an asset used to secure the finance. If this asset disappears, they are more exposed to the risk of a default, so they have the right to demand payment straight away.
    You agreed to that when you signed the finance contract: guaranteed.

    4) If you want to pay in installments, you get an unsecured personal loan from your bank, use it to pay off the finance company, and then pay the bank back over as many years as you requested the loan for.
  18. Re: Write Off - No Insurance - Finance - What to do?

    You had better tell the lender it's for a holiday if you take this option;)

    Its still better to negotiate a deal with the original lender.
  19. Re: Write Off - No Insurance - Finance - What to do?

    Firstly, they are entitled to ask for the money.
    They no longer have the "security" for the loan.

    Yes you can ask for time to pay, but it's up to them to agree.
    If they start debt recovery action it could very well go to court.
    The credit card option or (preferably a personal loan) have merit.
    Yes, the courts could allow you time to pay, but this whole process will cost you $$$.

    I'd also be very careful about attempting to transfer or sell the bike.
    You will probably find that it has an "encumberance" on the title that will not be removed until full payment is made.
    Meaning you cannot transfer it to anyone.

    Spend the dollars and see a good lawyer. Now.
  20. Re: Write Off - No Insurance - Finance - What to do?