Barclays - Fixed sum loan with balloon payment???

[MikeyC96]

Hi All,

I need some assistance as I have been under the impression that I had a PCP agreement with Barclays partner finance, however after receiving a copy of my finance agreement recently (left my old one at my exs) it is headed fixed sum loan.

Now the issue is, my agreement states I need to make a final payment of £5k? (Which I take is a balloon payment) I didn't think fixed sum loans had final repayments? (Balloon payments)

Please can someone assist!

[R0b]

Hello

From looking at BPF's website, it looks as though you might have accepted a personal motor loan with a balloon payment. A fixed sum loan agreement is essentially a personal loan which is used specifically to pay for the car and then you own it from the start (the agreement should say who owns it).

Personally, I don't like these agreements and in my mind they have the hallmarks of a conditional sale agreement without your right to VT the agreement. It has been known for dealers to say that they will offer you a PCP or other type of hire purchase agreement, and give you all the pre-contractual documentation but then at some point it is switched to a fixed sum loan agreement without your knowledge.

The only real way to challenge something like this would be to take the matter to court, and let a judge decide whether the fixed sum loan with balloon payment is another type of agreement or if it is simply a type of hire purchase agreement.

Really depends on your reasons for asking and whether it affects you in any way. I would say however, you need to perhaps pay more attention to what's being offered to you, unless of course you were mislead and in which case you should make a formal complaint, but you'd need to evidence it as on the face of it, you have a fixed sum loan.

[MikeyC96]

Hi Rob,

Thanks for the quick reply, I was most definitely mislead as the salesman did advise me it was a PCP and to make matters worse the dealership no longer exists...

To be honest, my financial situation hasn't changed too much so its not too big of a deal, but I am soon moving to a location where I wont be using it as much is all.

Thanks for your assistance.