Hi everyone, just a quick question im hoping you guys could maybe answer for me. Im in year two of my IVA and have a car on HP with RCI finance which is due to end in July leaving me with the options of handing back the car or refinancing the balloon payment of £3500 for my renault clio, which is worth about £5500. Due to my IVA I know i might struggle to get them to refinance, Ive explained to them I have a allowance for the car, but they are not prepared to give me an answer until the end of the term, which if frustrating because the MOT,insurance and service are all due this month. I cant afford to do all this just to have to give the car back. I was wondering wether a call or maybe a letter from my IP to them may help my case. Or maybe somebody knows of another way.
Hi
A letter from your IP may help, showing that you have the allowance in place. Another alternative is for a third party [family, friend] to finance the balloon and you repay them with your monthly allowance. You will need your IP to ok this route though
Regards
My balloon payment was with citroen, i had issues at the dealership trying to explain what i wanted to do, and they point blank refused to help. I contacted citroen financial dept and explained my IVA and that i had a provision of another 2 years to pay the car off, and i gave them the address and contact name of my IP, i also sent the same letter to my IP granting citroen permission to discuss this with them.
About a week after citroen sent me a letter showing my future payments and it was all sorted, only 3 more payments and the car is all mine. As far as i know they didn't contact my IP they just sorted it all out for me. They have even sent me a letter this week, stating that if i needed a new vehicle in the next few years if i contact them direct they will do all they can to help me finance the new car. Which surprised me but also means after my IVA is done i can at least look forward to a newer car, as mine is starting to get a bit battered.
Finance companies generally don't really understand how IVAs work practically, so the intervention of your IP is quite a good idea. I am sure this will all be sorted for you very soon.
