Car Financial institution/Arm in Slovakia told me that I have my car being repossessed because I missed out on 2 single payments in total. I have offered a payment plan but this has been rejected.
Instead, they say that they will send someone here to Switzerland to repossess the car with the assistance of police if required.
Question. If my car does get possessed, my concern is that they sell my car for very cheap and try to chase me for the outstanding balance - After the car has been repossessed in both options. Note. I do not own any assets anywhere.
As I am in Switzerland, and not EU. Can this be done ie Force me to pay remaining balance? Or my debt sold on to some local agency for collection?
I will continue to see if they will negotiate but I am bit surprised that they were not interested at all in the payment options provided and instead just want the full amount paid immediately.
When you fall to honor contracts such as this, the debt crystallizes mean it becomes payable in full on demand, that is normal. Was it even legal to export such a car into Switzerland in the first place, if not then further troubles may be on the horizon if they make a criminal complaint.
As to what happens about the debt, it really depends on the size of the debt and if it was worth the effort involved in doing all the paperwork needed to enforce it in Switzerland. A 10k debt bought for say 10% might be worth someone’s time.
you've taken the car out of the country, which on a financed car isn't allowed, so no real surprise they want paying in full now or the car back, it not like people do that to steal the car is it
If your car is repossessed then of course they will sell it, usually at auction, with no reserve and you'll still be responsible for any short fall, and of course all the costs will be added, the costs for sending someone out here to pick it up etc etc.
My advise to you would be drive the car back and hand it over, or pay up, sooner rather then later, if the finance company mark the car as stolen you'll be in a world of pain.
A friend in the uk had his car repossessed and still had a very sizable debt to pay after!
A standard leasing agreement would include a clause forbidding you to take the car out of the country without their permission. This is normally overlooked and unenforced for normal travel out of the country but can be enforced in cases like yours.
It would also allow them to make a criminal complaint for theft, since the car is technically theirs, and not yours until you make the final payment.
The reason they will not negotiate is because the car is not in Slovakia, and if you make an agreement which you then renege on, they have to start all over again.
They will sell it most likely in an auction, and if there is a shortfall, especially if they add in the repossession and legal costs, they may well start legal proceedings against you in Switzerland - it is their right to do so - and that could then cost you even more and show on the credit registers here.
However, they cannot just come to Switzerland and take the car from you, they would need the police to help enforce a local court's judgement. But when the police see the car, and depending on how long you've been in Switzerland, you could then become liable for VAT, possible import duty and certainly fines.
My advice would be to call them, offer to return the car to stop further costs and then make a deal for any possible shortfall. You may be lucky and they get more for the car than the outstanding debt and costs.
Go find a lawyer, we don't know who owns the car and we don't know what you exactly signed, we don't even know if you were allowed to take the car to Switzerland.
Maybe the lawyer will tell you that it is a lost case and driving back the car yourself will save you a big bunch of money.
A financed car does not belong to you. Even if the papers are in your name will the papers have an entry that the owner cannot be changed. This text will also block you from exporting it and get "different plates". If anyone managed to get new plates because the local official wasnt paying attention is that probably already a problem. Chances are that the OP simply drove from his home country and is driving around on his foreign plates in CH which in itself is an issue.
make it any more of a ballache to the finance company and they'll just report it stolen, op will still owe the money plus all costs, and will have the boys in blue after him.
Thanks all for your response, I would like to provide some more info/clarification.
- I am allowed to move around with the car in the EU without restriction and import into any EU country without restriction except for Switzerland
- I am allowed to drive the car in Switzerland
- I am not allowed to import the car into Switzerland unless permission provided by owner and I pay my dues. I am not the ultimate owner of the car, I am the registered driver.
- By the end of this year (I either must import the car or have the car taken out of Switzerland)
-The car will be collected by some agency, they will use police to assist them (Usually means notifying the local authorities and police observing and ensuring the breach of the peace is not broken) and taking it back to Slovakia (I am unsure what happens then/after) and the only thing that has been stated to me to date is reposession of the car only.
I havent committed anything illegal or an offence. I regularly get stopped by Swiss police in particular at the border because of my plates and they run their checks also.
So my question now is, after they collect the car (I assume they eventually sell it) then chase me for remaining balance if the car is sold below actual value?
Can they request that the remaining balance from me in Switzerland? and enforce it?, even if I refuse to acknowledge the debt if this is going to be the case?
Yes that's exactly what they will do, it will be sold at auction, ever been to a car auction? Ever had to pay for someone to transport a car? over 1000km you're looking at a serious amount of money, now the finance company might cut you a break and send someone in person to pick it and drive it back (unlikely) or they'll send a flat bed truck to pick it up - which will be thousands of franc's
you would need to google if Slovakia have agreements with switzerland for that, even if they don't do you really want the hassle of this hanging over your head if you ever decide to go back home?
again, cheapest thing for you to do is drive the car back asap and hand it over.
or get a settlement figure and sell the car to a dealer for the balance owed (although I'm guessing you've paid bugger all back and the settlement figure is more then the car is worth)
I'm not sure you're grasping this, any charges they incur in repossessing the car will be added to what you owe, they won't be selecting the cheapest person / company they will be selecting a preferred supplier, who gets results, they most certainly won't be the cheapest
The costs added to your balance could well be more then the value of the car.