Barclays Partner Finance car loan

monkey11_2

Hi, Can someone help!?

I bought a car 4 years ago. When the car salesman sold me the finance package he told me that I would be able to take the car back in 4 years and be able to hand it back. He also stated that I could bring take back earlier but recommend I keep it for the 4 years as the earlier I took it back it would affect the money I would get back. He told me that I would pay the monthly payments with a balloon payment at the end of it.
I agreed to his explanation of this and signed the agreement. It is now coming to the time to pay the balloon payment so I contacted Barclays Partner Finance and asked what I would need to do to return the car.
They informed me that they had no interest in the car as I had took out a personal loan and the car is not secured against this. This obviously is not what I thought, as described above, I thought I had took out a PCP from what the salesman was explaining to me. I asked for a copy of my agreement to be sent to me as I did not have this.
I have received this and it says it is a Fixed Sum Loan agreement. Are they correct in saying that I am not allowed to return the car? I feel that this is not the way it was explained to me when I signed the agreement, do I have any rights?


Cheers x

miketaff1408

Just look on the bright side:

It is not a PCP

There is now no balloon payment to pay

The car is yours, and you can sell it and keep all the money.


The only downside is that you were able to do this right at the beginning when you change your mind! Obviously you would have still had the loan or would have had to pay for early redemption of the loan.

iolanthe07

OP - You're much better off than you thought you were. It seems that it was a straightforward loan, and not PCP.

monkey11_2

Hi,

Don't feel so lucky - still have to pay the balloon payment which is more than the car is worth!!!

miketaff 1408 - not sure why you put "There is now no balloon payment to pay"?? Am I missing something

flashg67

monkey11 wrote: »

Hi,

Don't feel so lucky - still have to pay the balloon payment which is more than the car is worth!!!

I think I'm missing something here - a straight loan doesn't normally have a balloon payment - have you asked for an up to date settlement figure from the finance company so you know what's left to pay?

monkey11_2

Exactly, that's why I have always presumed it was a PCP. Rang up and got the settlement figure which is the balloon payment. My finance agreement says it's a Fixed sum loan agreement, saying X amount for the first month, followed by 47 monthly payments of X, followed by one monthly payment of XXX.
??
The finance company has told me it is a personal loan and now I have to pay the balloon payment!

monkey11_2

can anyone shed a light on this - do personal loans have balloon payments??

rs65

Lexus website seems to have 2 options that have balloon payments. They don't use the terms 'personal loan' or 'PCP' though. Lease Purchase and Connect Contract Purchase.

What does your paperwork say? Is there any reference to your rights to terminate the agreement?

monkey11_2

What does your paperwork say? Is there any reference to your rights to terminate the agreement?

The loan was through Barclays Partner Finance which Lexus had just started to use at the time.
The credit agreement says it's a Fixed Sum Loan agreement and on it it says 'you have no right to cancel the agreement'.

SeanG79

monkey11 wrote: »

The loan was through Barclays Partner Finance which Lexus had just started to use at the time.
The credit agreement says it's a Fixed Sum Loan agreement and on it it says 'you have no right to cancel the agreement'.

Read in the T&C's to see what it says regarding termination rights. Cancellation rights and termination rights are two very different things.

monkey11_2

Decided that I am too confused if I have any grounds to complain, gonna pay the balloon payment and grin and bear it! Lessons learnt!!