Mr S1..

that is the exact set up that we need to avoid.

basically my partner bought a new car before I met her on the old HPI with a balloon payment.

the car was 8.5k worth less deposits original loan was for 7.5k - by the end inc ballon payment would of paid back 11.5k due to extorniate APR rate

currently paid 4k and the car is currently worth 6.5k - if we give it back now terminating the contract - then we lose the car the 4k and also have to pay an extra 1.5k to do the 50% payment thing.

therefore my reckoning was that 7.5k loan at 17.1% APR would equal X amount of interest.

so to clear it she'd owe the interest so far plus the original amount, less payments and she could get a loan to pay off the whole lot inc the pending balloon amount.

and hopefully with lower APR now... we could get the payments similar to what she was paying and clear it in a reasonable time.


think as few have said will have to write to them and apply for settlement.