Suzuki Finance PCP Final Payment Extension

What is a balloon extension?

Taking out a balloon extension means we’ll modify your current Personal Contract Purchase (PCP) agreement to a Hire Purchase (HP) agreement with a balloon payment, and we’ll extend your contract end date. This is useful if you’ve ordered a new vehicle and we’ve already approved the finance for it, but the vehicle isn’t going to be ready before your current agreement with us ends.

Your monthly repayments should stay the same or be similar to what they are now.

There will be a few differences to your current agreement including no Goods Return option or Guaranteed Future Value of the vehicle. We’ve included more about these differences on the back of this sheet.

How long can I have an extension for?

The Suzuki extension can be from 1 month up to 12 months. Your new contract end date should match the expected delivery date for your new vehicle.

Will I pay interest?

Yes, we will charge interest at a fixed rate of 5.9% APR during the extension. This may be more or less than you are paying now. Interest is calculated based on the number of months extension you need.

When and how can I apply?

You can apply for a balloon extension if you’ve been accepted for a new agreement with us on a new Suzuki vehicle and you’re in the final 90 days of your current agreement. Please do this by letting your dealer or retailer know at least 30 days before your final payment is due. The new agreement must be in the same name as your current one.

What happens next?

After you speak to your dealer or retailer, we’ll call you to talk through next steps and answer any questions you may have – our call may show as number withheld. If you’d like to go ahead after the call, you’ll need to sign and return some documents.

Current Personal Contract Purchase (PCP) agreement

New modified agreement - Hire Purchase with a balloon payment (HP)

Your vehicle has a Guaranteed Future Value amount under your current agreement. When your contract is due to end, you can choose to keep it by paying this amount. Or, you could choose to part exchange it for a new one, or return it to us under the Goods Return option – there’s more on this below.

There is no Guaranteed Future Value and you would need to pay a final balloon payment if you decide to keep your vehicle at the end of your extension. This amount could be more than the market value of the car at that time. You may not need to pay this if you are part exchanging your current vehicle for a new one as your dealer or retailer would then be responsible for settling the outstanding finance with us. You should check they do this and that your balloon payment is settled.

A Goods Return option applies, which means you can return the vehicle to us at the end of your contract without having to make a final balloon payment.

There isn’t a Goods Return option, so you’re no longer able to return your vehicle to us at the end of your extension, unless you voluntarily terminate your contract or would like to part exchange your vehicle with your dealer or retailer.

You may have financed any insurance products or extras as part of your agreement, such as Gap insurance.

If you financed any insurance products or extras as part of your current PCP agreement, such as Gap insurance, these will end before your new agreement starts – please make sure you check your policy’s end date and speak to your dealer or retailer if you have any questions.

We’re not able to add any insurance products or extras to your new modified agreement.

Your Voluntary Termination rights apply.

Your Voluntary Termination rights will continue to apply.

You have excess mileage restrictions under your current agreement.

You won’t have any excess mileage restrictions under your new modified agreement. If you plan on part exchanging your vehicle for a newer one in future then a higher mileage could affect the value that dealers or retailers will buy it back for. If this value is less than the balloon payment you’ll owe then you would need to pay the difference.

You need to keep your vehicle in good condition by regularly maintaining and servicing it.

You’ll still need to keep your vehicle in good condition by regularly maintaining and servicing it.