PCP Ballon Payment - Part early payment and rebate

TK2021

Hi all, I have a car loan under PCP and was looking to make an early payment towards the Ballon, having early repaid the rest of the money. The loan company has advised that (1) Part repayment towards Ballon is not possible
(2) Early payment rebate calculation do not consider the interest towards Ballon amount.
I was unable to find any such clause in the agreement and quick Google search revealed nothing. 

I am wondering if anyone in this forum has come across this issue? 

Thanks in advance (and apologies if covered elsewhere already) 

molerat

1) The balloon is to complete the contract, there is no half measure, all or nothing.

2) The balloon is effectively a deferred loan so interest is payable all the time the balloon amount is outstanding.

TK2021

Thanks Molerat, seems counterintuitive to me and lopsided in favour of lenders. It seems Ballon is a deferred loan which cannot be part early repaid, but full interest is charged on it, however no early repayment rebate is applied or applicable (since cannot be part repaid). Effectively, it means either save up for the Ballon at low saving interest rates, while paying the high interest on the debt. Sounds like circular debt trap. 

DrEskimo

Could you look at refinancing the balloon payment with either a personal loan or other low interest credit (e.g. balance transfer credit card)?

Then early repayment would be possible.

All in a good reason to avoid PCP finance and just go with standard loan structures without the final large payment.