After 4 years of HP payments on our car, they are about to end (March I think) and a balloon payment of approx £4,000 will be due.
VW finance have offered to re-finance the balloon but at an APR of 17%!!
My mother in law has offered to loan us the money needed to pay off the balloon so the car is ours straight away, at an interest rate of 4% annually.
Would we be allowed to do this, as long as the monthly payments we make to her are not higher than what we have been paying up to now??
Thanks
This seems perfectly fine but you will need the permission from your IP. There is nothing to stop you obtaining credit with permission and the fact that the proposed loan is cheaper than you can obtain from VW I see no real issues.
