Voluntary termination - balloon loan?

[Capricorn95]

Hi all
R0b I have applied to voluntary terminate my car as I am 3 months from having paid 50% and was going to repay the difference outright. I have received this reply from FCA automotive about my loan but I could have sworn I got PCP. Will I just have to ride this out or do I have a right to terminate?

Thank you for your email and letter.

The type of agreement that you hold is a Motor Loan Plus (please see attached copy of agreement) whereby you are the legal owner of the vehicle and we do not hold any financial interest in the vehicle.

The finance is secured against yourself, not the vehicle and is similar to a personal/bank loan.

For this reason, unfortunately you do not have the option to Voluntarily Terminate the agreement and return the vehicle to us like you would with a PCP or Hire Purchase agreement.

You may sell the vehicle and settle the finance in full (settlement figure attached), partially or simply continue to pay your monthly instalments. Please bear in mind that you have a balloon payment due on27/04/2020 of £4,276.00.

You may also have the option to return the vehicle at the end of the contract once you have paid your last normal monthly instalment (27/03/2020) if the vehicle is under the agreed mileage (20,050 miles). The End of Contracts team will then make a decision as to whether we will accept the vehicle as a Hand Back, this is not guaranteed.

Should you wish to discuss this further, please do not hesitate to contact me.


Thanks in advance for any help,
capricorn95

[missmagpie]

R0b Hi
Im in a similar situation with FCA Automotive. I emailed to VT my vehicle after being missold the finance by Stoneacre in 2016.
I am one month away from reaching 50% of the agreement and having exceed the mileage they didn’t advise me of, and having nothing but trouble with the vehicle, I want rid.

they have emailed me in response to my request to VT with
‘Good Afternoon,

Thank you for your email. I do apologise that you were not given correct information when taking out a new vehicle with the dealer on finance.

Unfortunately, due to your agreement type being a Motor Loan Plus, the option to Voluntary Terminate is not applicable on the agreement. You are able to sell the vehicle on and settle the remainder of the finance currently outstanding, you can purchase the vehicle outright should you wish to, or simply hand-back the vehicle at the end of the agreement. I hope this clarifies matters for yourself.

Should you wish to query anything else, do not hesitate to contact us using the details below.

Kind regards,

*redacted*
End of Contracts & Loyalty Specialist’