PCP contract nearing end

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Post by wakeywakey » Wed Jan 08, 2020 3:16 pm
My PCP car contract with Ford comes to an end soon and as I'm in year 3 of my 6 year IVA I haven't got the balloon payment.
I don't think they will be allowing me to either have a new car or extend the existing contract, so it looks like trying a car loan company.

I presume they lend you the balloon money as a secured loan on the car?

Anyone any thoughts on this please?


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Post by Foggy » Wed Jan 08, 2020 4:39 pm
Primarily, you need the permission of your IP to raise any finance and this might not be forthcoming. Secondly, there have been a few instances where re-financing has been agreed (with the agreement of the IP first) to extend a current agreement, so worth an ask. I would imagine that your IVA terms, allowing you the PCP payment as an essential outgoing , might also state that this amount is to be added to the IVA payment when the PCP ceases.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by wakeywakey » Tue Jun 09, 2020 1:37 pm
Ok, so an update to this.

The IP agreed to refinancing the balloon payment which was good news.
However, the finance company are saying no because my partner is furloughed presently.
We have already had a IVA review with the changes to partners pay included and the refinancing included, but the finance company are saying whilst furloughed they can't take a risk.
(I thought the risk was on the car?)
So very stuck at moment and no end in sight to the furlough!
No spare money to buy car obviously.
Asked Ford credit to extend contract but they refused, even though they had left the car with us for 2+ years after they know about IVA, and obviously a new car was a no deal also.
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