Northridge Finance HP Agreement

spendaholicinseattle

Hi

I have an HP agreement with Northridge Finance (I bought my VW Golf at a VW dealership). I have had a letter from the finance company saying that my final balloon payment is now due. I was informed when I bought/hired the car that I would be able to hand the car back at the end. However, now they are saying that it may affect my credit rating if I do so.

I can't afford to pay it all off (£5676.25) so my other options would be to re-finance it or sell it I guess - I need to get something with better mpg as I am changing jobs to a longer commute.

Any ideas?

Many thanks

SiS

Kilty_2

My PCP agreement with Santander clearly states "Voluntary Termination - you may return the goods and end the agreement when £xxxx is paid" - this is equal to the amount financed minus the final payment.

Sounds like they're having you on. Worth seeing if a VW dealer would buy it from you for cash first though in case the value is greater than the final payment.

harveybobbles

Is it techinically tru when they say your credit rating MAY be affected, as doing a VT goes against you. Not score wise, but some fincance companies wont want to bother with you if you have done a VT.

Hintza

I'm confused here.

This doesn't sound like a VT and sounds more like the term of the agreement has come to an end. So why would it affect your credit rating?

Haing said that harvey has a point that if you VT then companies won't an to do business with you (But I'm not sure that is relevant here)


OP start reading your agreement in fine detail, something doesn't sound quite right.

motorguy

Its not a VT though, its the balloon payment at the end of a PCP deal?

Cant see there being a problem. My wife handed her Z4 Coupe back as the Balloon payment was something like £19,000 and the car was only worth around £17K tops.

motorguy

Hintza wrote: »

I'm confused here.

This doesn't sound like a VT and sounds more like the term of the agreement has come to an end. So why would it affect your credit rating?

Haing said that harvey has a point that if you VT then companies won't an to do business with you (But I'm not sure that is relevant here)


OP start reading your agreement in fine detail, something doesn't sound quite right.

+1

Maybe the finance company are trying to put a bit of pressure on for people to take the cars rather than hand them back?

I know it cost BMW millions a couple of years ago when people did it in droves because prices had dropped so much

blacksta

I suspect the OP is talking about PCP and not HP.

spendaholicinseattle

Actually it's a HP agreement, not a PCP. I may go to my VW dealership today to check it out. I really don't want my credit rating affected, obviously! I also don't have a copy of the agreement right now so I need to get them to send me one. Eeek.

I can't afford to get a new car with cash, but need one for commuting to my new job. So I will need to get finance again.

SiS