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Hi All.
I would really like some help if possible? I have a car leased (so I thought) on a 48 month contract. On paper, it is me that owns the car - I am the registered keeper. After four years it appears that I have the option to pay +£5000 and permanently and lawfully keep the car. I have contacted the hire company who have informed me that my agreement is a "motor balloon loan" but they have failed to confirm whether this falls under the category of "HP" or "PCP". I have a contracted term to pay Barclay finance (on behalf of the company), and I must adhere to a certain amount of miles driven, therefore, it is clear to me that I do not have full ownership and freedom of the car, so it is not a straight forward loan so to speak with me owning the car. The car was dropped off with no deposit or up front payment needed. When inquiring about VT the response was - "No costs would incur to voluntary terminate but this would show on your credit profile, and again, the vehicle would be checked for standards and mileage".
Below is the contract... Does this sound like a "PCP" agreement? -
Type of Enquiry: Motor Loan Balloon
Terms & Conditions of Vehicle Order
We hereby agree to accept delivery of the above vehicle, within one month of the requested delivery date subject to availability. I/We fully understand that the figures set out below are subject to revision due to ??????????? being able to obtain the vehicle at the figure upon which their quotation has been based. Should there be an increase in funding charges beyond the control of ????????? , I/We have the option to cancel this order. In the event of I/We cancelling this order for any reason other than stated, or failing to take delivery within the specified time, then I/We shall be liable to pay a cancellation fee of 3 times the monthly payment plus VAT to ???????????. Any costs incurred by debt collection agents in the course of collection of this sum will also be payable.
I would really like some help if possible? I have a car leased (so I thought) on a 48 month contract. On paper, it is me that owns the car - I am the registered keeper. After four years it appears that I have the option to pay +£5000 and permanently and lawfully keep the car. I have contacted the hire company who have informed me that my agreement is a "motor balloon loan" but they have failed to confirm whether this falls under the category of "HP" or "PCP". I have a contracted term to pay Barclay finance (on behalf of the company), and I must adhere to a certain amount of miles driven, therefore, it is clear to me that I do not have full ownership and freedom of the car, so it is not a straight forward loan so to speak with me owning the car. The car was dropped off with no deposit or up front payment needed. When inquiring about VT the response was - "No costs would incur to voluntary terminate but this would show on your credit profile, and again, the vehicle would be checked for standards and mileage".
Below is the contract... Does this sound like a "PCP" agreement? -
Type of Enquiry: Motor Loan Balloon
Terms & Conditions of Vehicle Order
We hereby agree to accept delivery of the above vehicle, within one month of the requested delivery date subject to availability. I/We fully understand that the figures set out below are subject to revision due to ??????????? being able to obtain the vehicle at the figure upon which their quotation has been based. Should there be an increase in funding charges beyond the control of ????????? , I/We have the option to cancel this order. In the event of I/We cancelling this order for any reason other than stated, or failing to take delivery within the specified time, then I/We shall be liable to pay a cancellation fee of 3 times the monthly payment plus VAT to ???????????. Any costs incurred by debt collection agents in the course of collection of this sum will also be payable.
I have found an agreement titled - "Fixed sum loan agreement - regulated by consumer credit act 1974". This has been issued by Barclays partner Finance.
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