Won't Be Able to Pay The Remaining Balance

the89er

My parents received a letter about their settlement figure.

Also it mentioned that their remaining balance (which I won't disclose for now) will need to be paid by their agreement end date (which is next January), but my parents will not be able to save enough to pay the remaining balance by then.

This worried me, until my mom told me that even though the remaining balance won't be fully paid, the company will extend the end date by another 2 or 3 years and increase the monthly payment amount.

I want to ask if anyone here could confirm this please?

Thank you.

SHAFT

the89er wrote: »

My parents received a letter about their settlement figure.

Also it mentioned that their remaining balance (which I won't disclose for now) will need to be paid by their agreement end date (which is next January), but my parents will not be able to save enough to pay the remaining balance by then.

This worried me, until my mom told me that even though the remaining balance won't be fully paid, the company will extend the end date by another 2 or 3 years and increase the monthly payment amount.

I want to ask if anyone here could confirm this please?

Thank you.

Unless someone sees the contract no one can confirm anything.

loskie

are you sure its not a PCP and they can just hand the car back?

J_B

the89er wrote: »

My parents received a letter about their settlement figure.

You need to start your story at the beginning


Did they buy a car on PCP or what???

the89er

Thank you for commenting.

I've asked my mom for this information. To be honest she doesn't know what a PCP is (it doesn't help that English isn't her strongest spoken language).

She did say she's done this before with the previous car (extending the agreement end date, paying a higher monthly payment), apparently.

Assume it is PCP, does the end date get extended if the payer isn't able to pay in full?

neilmcl

the89er wrote: »

Thank you for commenting.

I've asked my mom for this information. To be honest she doesn't know what a PCP is (it doesn't help that English isn't her strongest spoken language).

She did say she's done this before with the previous car (extending the agreement end date, paying a higher monthly payment), apparently.

Assume it is PCP, does the end date get extended if the payer isn't able to pay in full?

Sounds to like me it's more like a standard Hire Purchase (a PCP is just another form of HP but with a large final payment deferred to the end and the option to purchase or not). It's not unusual for either a HP or PCP agreement for the finance company to offer to extend the agreement, after all they'll continue to make money, although ultimately it means more expense for your parents over the long run.

AdrianC

the89er wrote: »

Assume it is PCP, does the end date get extended if the payer isn't able to pay in full?

If it is PCP, then the car goes back if she doesn't choose to buy it at the end of the term.

lopsyfa

the89er wrote: »

Thank you for commenting.

I've asked my mom for this information. To be honest she doesn't know what a PCP is (it doesn't help that English isn't her strongest spoken language).

She did say she's done this before with the previous car (extending the agreement end date, paying a higher monthly payment), apparently.

Assume it is PCP, does the end date get extended if the payer isn't able to pay in full?

I think probably what your mum has done before is take out a loan to cover the balloon payment with the same finance company. But this won't happen automatically, she needs to request it with the finance company or tell them she is returning the car. Otherwise, they will attempt to take the balloon from her bank account at the end of the agreement. If there is not enough money in her account, they will likely pass it to their debt collection department.

I am assuming this is PCP as you mention remaining balance.

foxy-stoat

the89er wrote: »

Thank you for commenting.

I've asked my mom for this information. To be honest she doesn't know what a PCP is (it doesn't help that English isn't her strongest spoken language).

She did say she's done this before with the previous car (extending the agreement end date, paying a higher monthly payment), apparently.

Assume it is PCP, does the end date get extended if the payer isn't able to pay in full?

Doesnt sound like she knows what she signed up for.

If you are trying to sort this out for her then take a look at the original agreement, no point in guessing.

She should try and get a personal loan organised in a few months to clear the balloon payment.

loskie

OR hand the car back. Ballon payment may be more than the worth of the car.

benje302

Hi


I have a Toyota which was on a 3 year PCP plan. I put down a deposit of £1500 and then paid £99 for 3 years. When my balloon payment was due I was given the usual options like hand it back, change to another plan or pay it off but I was also given the added choice of taking out a 2 or 3 year loan with them (Toyota finance) to pay remaining part thus owning the car at the end of it.


Hope this helps


Ben