Car Loans - Non regulated loans

tonymurton

Hi

I took out a loan for a car with Northridge Finance in Jan 2008. The deal was for an Aston Martin purchase with a balloon payment. The figures are: £103k total loan value, 48 x £1k per month payment and a final payment of £50k. My next payment will be the final one before the balloon payment is due. I have worked out that i would of paid back over half the total loan value after the payment in Jan and thought that i could safely give the car back under the halves and thirds rule.

However on closer inspection of the paperwork, there is a clause that states if the loan is over £25k then the loan is unregulated, therefore the halves and thirds rule does not apply. I have been made aware that this rule changed in April 2008!

The balloon is £50k, the car is worth approx £35k depending on who you want to speak to. My new job dictates i need a more sensible car as i will be covering around 20 - 25k miles pa.

Is there anything i can do apart from take the £15k hit or refinance the £50k.

Thanks

Tony

nelly12

You are correct in that you either take the £15k hit or refinance the £50k balloon. At £1k per month you're probably talking about another 5 years though to pay that £50k off. If you can afford to I would take the hit. Financing the £50k is a lot harder now than it was in 2008.

Good luck.

geoffky

If you signed before the rule changes then you must fight it because how can they change the rules mid loan?