Car Loan for Balloon Payment?

BrummieSteve

Hi All,

First time poster so hoping someone can help me.

3.5 years ago I bought a brand new Seat on Finance, I've never missed a payment and am coming to the end of the term. In this time, my credit score has dropped drastically to 'Very Poor' (Through no fault of my own, but that's a different story...).

I have to pay a £4290 balloon payment in June. I've applied to VW Finance to refinance this but its due to another credit check which I think i'm going to fail. I've had a look for alternatives and there are plenty of car finance companies on the web - most are fine with bad credit. Problem with these is they want you to go to a dealer to buy a car... not to pay off a balloon payment.

Are there any car finance providers that will let me take out £4290 for my balloon payment? If not, what are my options?

Thanks!

[Deleted User]

Why are you looking at car finance companies and not just for a personal loan?

andyfromotley

Hi steve, sounds like you will struggle to refinance the baloon payment.

In which case i guess that you will have to hand the car back and buy another vehicle. Hopefully you have some savings or an EF to buy yourself a beater?

foxy-stoat

You need a personal loan, or a number of credit cards.

Whats the re-sale value of the Seat, you may be better off handing it back and taking out finance to buy another car.

AnotherJoe

If the value of the car is substantially better than the balloon payment, which it often is, the OP would be advised to looking at a very short term loan from a friend, or even have a friend buy it and then resell and split the difference, to recover some of the value.

thebigripoff

My question would be having paid the agreed price in full to the dealer via a finance plan why are we expected to pay again i have the same issue and am told its to cover administration.

a thank you letter wold have been more appropriate

Caz3121

thebigripoff wrote: »

i have the same issue and am told its to cover administration.

a thank you letter wold have been more appropriate

from your other post I don't believe you have the same issue at all
Poster here has taken a finance deal that includes paying the final £4k+ at the end of the period of monthly payment, this will have clearly been part of the finance agreement and the £4k+ pays the final payment to the car.
You state you have been told you need to pay £200 for admin at the end of the term....not the same!

[Deleted User]

thebigripoff wrote: »

a thank you letter wold have been more appropriate

You may well get one if you pay the £200 you owe them.

thebigripoff

thanks for your comments and i agree the circumstances are different my question is why do i need to pay the "balloon payment" having already paid off the agreed price and any interest acrued

Caz3121

thebigripoff wrote: »

thanks for your comments and i agree the circumstances are different my question is why do i need to pay the "balloon payment" having already paid off the agreed price and any interest acrued

you will need to refer back to the original agreement you signed..

AnotherJoe

thebigripoff wrote: »

thanks for your comments and i agree the circumstances are different my question is why do i need to pay the "balloon payment" having already paid off the agreed price and any interest acrued

That is not the "balloon payment" !!!

it's an extra £200 on top of all the other payments you agreed to when you took out the loan and didnt spot when you read through the contract and determined exactly what payments were due. You did read it right? It would have been on the main page with all the payment details.