Barclays Partner Finance car loan

pheonixrising21

monkey11 wrote: »

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!!

Does your credit agreement include any reference to annual mileage? if it does, its most likely to be a PCP-type agreement and should include an option to return the car at the end of the agreement (before the balloon is paid) and walk away from the deal.

Of course the finance company have no interest in the car, you have stated it is worth less than the balloon payment so they will lose out on the deal!! Sounds like they are trying to fob you off! You have a car worth, say, £4k but a balloon of £5k, if you were the finance company would you just accept the car back without saying anything (they should do if its in the agreement, but that may not stop them trying to make you pay the balloon)?

If this is a PCP type agreement (and it sounds like it is), you should have the option to return the car. There will be a charge for excess mileage i.e. if you signed an agreement to do 10000 miles per year and the car has 45000 on the clock, you will be expected to pay x pence per mile for the 5000 additional miles, but that is it. If you are under the mileage, you should just be able to walk away from the car and go and buy another one.

The GFV (guranteed future value - the balloon) is supposed to be calculated to that it accurately reflects the car's value at the end of the agreement. They clearly have got this wrong and want you to pay for their mistake. If they had calculated it correctly at the start, the balloon would be roughly equivalent to what they say your car is worth now and the monthly payments would be higher to compensate. They made this error.

What does your agreement say?