Personal Car Loan after Death

A question about : Personal Car Loan after Death

Hi there,

My stepfather recently passed away and had purchased a vehicle around a year ago.

The vehicle was bought using a personal loan through the finance company...it was not on HP.

The vehicle is worth around Ј5200 and has Ј5600 finance outstanding.....The main issue is that there is no money left in the estate to pay for the funeral, the existing finance on the car nor the Ј1500 outstanding on the mortgage...(there was a policy in place but it did not cover the mortgage in full)

If the car is sold can the money be used to pay primary debts like the funeral/mortgage or will the money be needed to pay off the car finance ?

Thanks

Matt

Best answers:

• Hi there,
  Apologies...it was an unsecured personal loan....Personal Loan with Hyundai Finance. They provided the unsecured personal loan
  Thanks
  Matt
• If it's an unsecured personal loan, then if you sell the car the funds will be added to the estate - they won't be attached to the car.
• Does that mean that I can use the funds to pay off the Primary debts ie Funeral and Mortgage ?
  Thanks
• yes pay the funeral first of all, then the mortgage
• Possibly got the wrong end of the stick here, if there is Ј1500 left to pay on the mortgage, won't the property then be part of the estate?
• The house automatically transferred to my mother but you could be right. Need to check this also