VW Finance... Baloon Payment Of £7000 Due In Apr And I Havent Got It. Help Please

[thereshope!]

Hi all,

 

I will owe vw finance £7000 on the 1st apr as the final payment for my car.

 

My financial situation has dramatically changed since getting the car and while I can just about afford to repay the monthly fee, I certainly cant pay the £7000 that I owe as a lump sum.

 

Loans and credit cards are not an option due to my current payment history.

 

I have never been late with payment to VW Finance and was wondering if they would consider keeping my monthly instalments in place to pay the remaining balance or are they likely to insist on the full payment ?

 

I havent contacted VW yet as I wanted to ask the advice of fellow CAG members .

 

Is there a set way to go about this ?

 

I really dont want to have this car taken as we have paid in excess of £13000 already.

 

Any thoughts or ideas would be much appreciated

 

Thanks

Hope x

[PKea]

I gad a similar agreement with renault.

I phoned them and just set up finance to cover the balloon payment.

it was even cheaper per month

[thereshope!]

I gad a similar agreement with renault.

I phoned them and just set up finance to cover the balloon payment.

it was even cheaper per month

 

 

Thanks for the quick reply PKEA.

 

Did Renault do a new credit check on you ?

 

I'm worried that VW will and realise that I have been struggling to keep up to some of my commitments and refuse to re-finance the finance ?

[PKea]

I had a 3yr agreement where you either pay the balloon or give the car back.

I wouldnt say my payments with them were perfect and that my credit was good either.

I just phoned them up and asked if they could refinance the ballooon payment, I think they did a check on me because they said they would call me back later. ( I think it was just an internal check cos when they phoned they asked the reason for my missed payments and i explained).

They then said they would send a courier with the documents to sign.

 

I think they they know that they will make more money from your payments an interest than selling the car.

 

I did this with about 2 weeks to go on my agreement.

ITs worth asking the question now with a few months under your belt to sort something else out if they say no.

 

Good luck and post how you get on

[stivis]

phoned them and just set up finance to cover the balloon payment.

did that a couple of times...It is totally acceptable and Finance Companies are very keen to do it.

[honda77]

My brother is in exactly the same position and his balloon of £2700 is due in March. The problem with my bro is that even though he has never missed a payment the lease company don't do car finance anymore and he can't go elsewhre as he has a CCJ and is now self employed.

 

I would assume that they would credit check you but im not 100% sure.

 

On the HP agreement it states: If you have paid at least one third "The owner (finance company) may not take back the goods against your will unless it gets a court order.

 

Hope this helps.

[Jimbo44]

I would assume that they would credit check you but im not 100% sure.

 

On the HP agreement it states: If you have paid at least one third "The owner (finance company) may not take back the goods against your will unless it gets a court order.

 

Hope this helps.

 

I'm not 100%, (just 99.9%) certain but I think you'll find that the 'one third' refers to the total price of the goods (car) that were original financed, and that includes any 'baloon' payment.

 

In effect all the 'baloon' payment actually does is defer an agreed portion of the original cost until the end of the agreement when it (the 'baloon') becomes payable in a lump sum.

 

The intention of the concept was that the vehicle would be traded-in for a new model and thus the 'baloon' would be settled as a part of this transaction.

 

When I was last involved in the sale and financing of new cars the manufacturers and dealers were letting it be known they would not be keen to re-finance 'baloons', but I strongly suspect that 'market pressures' may well have changed this now.

[MARTIN3030]

Agreed Jim April is some time off yet so you have got some time to look into the suggestions that have been made you have certainly nothing to lose by doing it.

[thereshope!]

Hi all

 

Thanks for the replies.

 

Still plucking up the courage to phone.

 

Scared that they will refuse .

 

 

Going to phone on monday, cos this is just stupid.Its got to be better knowing one way or the other.

 

Thanks

Hope xx

[stivis]

Given the car is worth a lot more than £7K . now bear with me here ... try to sell the car and arrange for the purchaser to pay the £7K to VW finance they then send a letter confirming "clear title" and you pass the car on on receipt of the balance in cash or whatever.........You can of course get the payment total of sale price direct to VW they then refund the difference to you .......I've bought and sold vehicles using both these methods........I hasten to add you need to be careful .......I would prefer the split amount

 

I don't know if anyone has said the final payment has had interest applied throughout the term of the agreement .......personally I don't like the system

 

jimbo44 is 100% correct

[thereshope!]

Good news !

 

Contacted VW Finance on 26 th jan re re-finance of car and they were very helpful and understanding !

 

Received new payment options in post today,offering either a new 2 or 3 year agreement.

 

Yeah,extra to pay on the interest but at least I can afford to pay the instalments and keep my car.

 

Hopefully the money I reclaim from various credit/store cards and bank accounts will make a dent in my debt to VW and that I get to pay it off a bit sooner lol !!!

[thereshope!]

hi all:)

 

signed and sent back new credit agreement today so legged up for another 3 years but at least I get to keep my car !

 

Thanks for all your help peeps

 

 

Hope xx