balloon payment headache...advice please!!!

[Christabelle_sparkle]

Hi,
I would like some advice please.
I have had car finance with ford credit for 3 years and the balloon payment is now due. I have paid all monthly payments under the agreement over the last 3 years. The balloon payment is £3100 and I have managed to pay most of it off and now only owe just under £1000. I have managed to do this because IP allowed us to have a payment break towards the balloon payment but not long enough to pay it all off. They allowed us the break because they said when we were at the beginning of the IVA that we would be able to continue paying the balloon payments monthly with ford but ford said no due to IVA. (We also had to hand hubbys car back to ford credit at the end of last year due to the same incorrect info by IP). Can anyone advise me on where I might stand in this situation?, I am worried that ford will attempt to reposses my car!.Can they do this when I only owe £900? Total cost of the car was originally £10,000 and I have paid over 90% of it off.

[Shining]

Hi, I'm sorry I don't know the answer to this but hope one of our experts who post or another poster does so will keep this bumped up.

Could you pay the other £900 in time maybe, come to an agreement with them and keeping your IP in the loop obviously at all times. x

[Christabelle_sparkle]

Thanks Lesley,
I would be happy to pay ford until its paid but they have already said that the contract ends in May so thats it!..payment is due then!, they won't refinance me because of IVA, hence my headache.

[Broke of London]

Hi - can a friend or family member help out? How long will Ford take to reposess the car and will they allow you to pay off the balance during this time? x

[langerbridge]

You have raised my worst fear! My company said ford would allow me to re-finance. I'm not surprised by there response to you on this. I'm no expert but they would need to take you to court to recover the car. They have to do this I think once you have paid half. Prior to paying a third they can just turn & tow away.

[Christabelle_sparkle]

Hi, Thanks for all responses,
I have no-one else who can help me out financially im afraid. Ford will not re-finance when your in an IVA regardless of the fact I have never missed a payment with them before or during my IVA. I do not know how long it would take to reposess the car if that is what they aimed to do. I could potentially have the car completely paid by off by august.If they take me to court do I have a good chance of the judge finding in my favour given the fact that I have paid so much off already and that I am prepared to finish off paying for the car in a matter of months?

[Broke of London]

I don't know how a judge would find and I've not been in this situation myself so I don't have any experience to draw on. I did look into buying a car with a balloon and at the end had the option to sell the car back to the dealer - do you have this option? x

[plasticdaft]

The only other issue is ford credit adding charges if payment is later than it should be.

Paul

[andy31]

I am in the same postion with ford credit. I have been a customer of theirs for over 10 years and never missed a payment on any of the 3 cars i have financed from them.

I am now at the end of my ford Options agreement and have a ballon payment of £3600 to pay. I was also lead to believe that i would not have a problem refinancing this amount through Ford Credit, but have been refused point blank. I was told either pay the £3600 or hand the car back, no offer to discuss the matter at all!!

Reaaly dont know where to go from here.

[Broke of London]

Does your deal require you to hand the car back or do you sell it back? If they pay you for it you can just go and buy another car.

The only other option is for family or a close friend to lend you the money. Unfortunately, we are lucky to get so much as a mobile phone contract whilst in an iva so you are unlikely to get finance.

You could speak to Duncton's who specialise in sub-prime car finance. They may not offer re-finance though and what they do offer is expensive and would need your IP's approval.

[badger]

Hi,

another option is to 'downgrade'. Just find a good dealer with a suitable car at approx £1000 lower price than your car's trade in value (you can get a good idea from teh vauxhall website for a trade in value)and trade in. Obviously call them beofre hand and explain there is £1000 remaining on finance and if they want the car for their stock then you should be able to strike a deal. The dealer will pay off the finance on your car (they should do this over th phone in your presence) and take possession. You will take a hit but at least you'll still have wheels. You should run this approach by your IP but I can't see why there'd be problem in terms of your IVA. Hope you find a way to keep your original car.

let us know how you get on

[kallis3]

You could always try to get a new vehicle via a company like Dunctons. High APR but you are guaranteed acceptance and can get a recent reg.

You would need to run it via your IP though.