www.iva.co.uk

Hi guys, my hp agreement on my car is ending next month, in my iva plan it's written that I intend to refinance the balloon payment and pay it or next 2 years after which my iva contribution goes up by that amount each month. I didn't hink it was gonna be an issue but after doing some research online I am reading that a lot of people in an iva are finding it very difficult to get the car company to refinance the payment! Seems strange as we are all on a strict money budget so surely there would be no issue in them not getting their money. Anyone any experience of this? I'm with ford btw and owe just under 4k to clear the balloon payment.

Hi,

Unfortunately people are finding it difficult - it's up to each individual finance company as to whether they allow it or not.

We all know that we can budget now but they don't seem to realise it.

Good luck, hope you manage to do it.

Hi

It seems to be hit and Miss with some lenders for HP finance. Citroen were brilliant with me and gave me 2 options either pay it over a year or 2 years. I chose the 2 years as this is what was written into my IVA.

Hope you manage to find a lender

I was also with Citroen and they were very accommodating in allowing payment to continue from the lease until the balloon was paid up. There have been other forum members who were also with Citroen and got refused as has been the case with Ford as well.

If they refuse you Susan, are there any family members who could help out with the payment - as you could legitimately repay that debt by ongoing payments allowable under the IVA.

Citroen where very supportive with me, i provided evidence of the amount set aside for the balloon payment which i discussed with my ip at the start of the iva and also indicated to citroen that i wanted to pay an additional 2 years for the car before i started my IVA.

When the time came it was just a quick call and everything was in place, they have offered a car loan post iva but as yet im resisting taking them up on it.

What's a balloon payment?

Yes Melanie my sister has offered to pay it and hopefully I would be allowed to pay her back instead, just don't like having to ask my family for help yet again

There is no "hopefully" about it Susan. The terms of your IVA allow you to refinance the loan, and the fact that your sister is generous enough to do this for you does not mean she should not continue to be paid the equivalent of your current HP payments by way of a formal repayment.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by wiggle1

What's a balloon payment?

When you take out a lease on a vehicle it will have a guaranteed resale value at the end of the term i.e. £3500. You would have paid X amount over the term of the lease and what it remaining (the guaranteed resale value) is the balloon.

Ford keep ringing me wanting to take on a new car with them, I'm politely trying to explain that I just want to keep the car I have and just pay off the remainder but they keep saying but we will make your payments go down blah blah. I don't want to come right out and say I'm in an iva cause I know I will be refused the refinancing of the balloon payment. Grrrr why is everything so complicated. Apart from this, my iva is working so well, it's the best thing I have ever done

.Thanks Merlin14

Why not see if they are prepared to give you another car? Nothing to lose and everything to gain if you are accepted I would have thought - as your IVA provides for continuing payments. Play ignorant to the credit checking issue - at worse they can only say no.