balloon payment

Ectophile

https://forums.moneysavingexpert.com/discussion/comment/82001053#Comment_82001053

A happy friend, and no risk of the finance company sending out a bill for every dent or scratch on the car. The OP can't afford to pay off the balloon payment themselves anyway.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82001415#Comment_82001415

But why wouldn't the OP sell the car, apparently worth £2k more than the balloon payment, to a trade buyer who settles the finance and pays the OP the balance and make themselves £2k up?

jimjames

https://forums.moneysavingexpert.com/discussion/comment/82001475#Comment_82001475

Maybe because they didn't realise that was an option until this thread?

Goudy

The finance company won't care where the money comes from, but they will take it/attempt to take it when that final payment is due from YOUR bank account.

As it's not until September, you could ask the finance company for an early settlement figure and then arrange to pay that before the final payment it due.

As others have mentioned, you could sell the car to a dealer or car buying service and if they deem the car to be worth what is owed, they will pay off the finance.

If there is more, they will pay you that back. If it's not enough, you'll have to pay the rest there and then.

As it's a PCP you could arrange to hand the car back to the finance company. You usually have to make the arrangement a month or so in advance and as long as the car meets the conditions laid out in the contract, you pay nothing more.

Both of these mean you lose the car unless you can arrange to refinance that balloon/early settlement payment somehow but on the up side, you shouldn't end up in more debt if you can sell or hand back.

If you really want to keep the car you're friend isn't going to be able to arrange to take over the finance or rearrange the finance for you with this finance company.

They will have to borrow/give the cash so you can pay it off as it looks like your circumstances dictate you are in no position to rearrange that yourself.

I'm not sure where you stand with taking on more finance with an IVA, but there is no harm in ringing the finance company and asking them. It could be possible your friend stands as a guarantor, but the interest rates aren't going to be cheap.