The PCP plan for my car is coming to an end next month. I have now got the three options of returning car, part exchanging for a new one or refinancing the balloon payment. Clearly the latter 2 are out as I am in an IVA...but I have exceeded the mileage by quite a bit and at, I think, 5p a mile it is adding up to quite a sum...and a sum I don't have.
Is it possible, do the experts think, for the excess mileage to be included in the IVA as the contract does pre date the IVA (taken out in 2006) IVA approved 2008.
I am worried sick about this at the moment...please no flames...I know we should have done a better job at keeping it around the mileage agreed.
I think you are going to have to run this one past the IP. What was supposed to happen once the plan was finsihed?
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Jan, do you mean under the terms of the IVA or the terms of the PCP?
The IVA does state that I could try and refinance the vehicle, but as a tennant in an IVA I'm not exactly a low risk - so I asked the IP for a payment break (which they approved) and to use the money not spent on the IVA and on the car for 2 months to go towards a runaround (this figure is around £1200 so could get a car for that)
Under the terms of the PCP I either return the car and pay the balloon payment and any excess mileage, part exchange or refinance the balloon payment.
Your current finance company might look at refinancing the car for you. Providing you have kept to the contractual payments and paid on time. Have you spoken to them. Not saying they will help you, but you never know. Could you look at selling the car privately to pay off the balloon payment and then use the money you have saved to buy yourself a further car.
Obviously your IVA would have taken into account the payments for the vehicle.
Have you asked what the costs would be to re-finance the balloon payment and keep the car?
Otherwise, if you hand it back and can perhaps use the payment break to fund any excess payments, there are other companies, such as duncton finance, where they will sort you out a new vehicle.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Andy, yes, the IVA direct debits are set up to include the amount we were paying on the car from when the PCP ends.
Mickyboy - I am looking at selling privately...photos being uploaded to eBay classifieds and AutoTrader as I type. I will of course be honest about the finance situation.
Jan, that is a good idea - I hadn't considered using the payment break to fund the mileage...and if there are people who can sort out a car for a high risk proposition like me then that is certainly worth looking at.
Thank you all.
Hello I was in the same situation back in 2006 with my Renault and after contacting Renault and them initial rejecting the refinance they saw the IVA and the propsal and the fact that £260 per month was allocated to my car finance they did refinance the balloon at £230 over 3years. They will not really want your car back especially with the car market as it is currently. If need be get you IP involved with speaking with them. also remember if at first you dont succeed try again. did your IP know the car would need refinancing at the end of PCP...also do you need car to earning your living? Karen x
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Given that you knew the car pcp was going to end during the iva and had planned for the iva DD to go up after final car payment,what did you intend to do for a vehicle??
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I would have thought that refinancing the deal is your best bet - and if you have a good track record for meeting the payments there should be no reason why the finance company would not agree to this. At the end of the day you will then eventually own the vehicle.
we will be in this position next May, we pay £176 a month with a balloon payment of £8300 & prolly looking at an excess mileage charge of around £1400. We did have 2 cars when we got this & didnt expect to go over the mileage by 24k. The excess mileage charge only applies if you give the car back. We will be looking at refinancing the balloon payment next may, we need a reliable economical car, (500 miles a week +)just hope VW play ball. Might be worth a phone call this week to sound them out.
Last edited by mikepapa on Sun Jun 07, 2009 8:11 pm, edited 1 time in total.
mikepapa when mine was up for refinance they called me about two months before the actually date, keep your payments in order and dont be put off by a no. When they see your proposal and that you have an allowance for your loan they become much more helpful. My interest rate was a bit higher than my first agreement and as I have said before, used cars with high mileage are not very attractive currently x So dont be put off. Karen[:I]
Last edited by kabby3 on Sun Jun 07, 2009 8:46 pm, edited 1 time in total.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
I suppose it will depend on who the finance company is at the end of the day and whether or not they will let you refinance.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
volkswagen are not iva friendly, my car was fetched back after one missed payment and they even managed to secure a ccj for a shortfall of over £6,000 after the iva was approved. Not bad for a polo to have a £6k shortfall.
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Thanks everyone..I guess I should ring them, but it sounds silly, I still have so much guilt and shame over being in this situation. I don't feel 'worthy' of finance.
The slight stumbling block is that some payments have been late, still made each month, but have been 1-2 weeks late on occasion due to the fact that we get paid 4 weekly and everything goes out monthly - we still find it incredibly hard to get everything to 'fit'
