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PCP Vs Personal Loan
peterg1965
Posts: 2,164 Forumite
in Loans
Can I please ask for some assistance from some of you very knowledgable finance gurus?
I bought my brand new car on a PCP finance package back in September. Details are: cost price £27790, deposit £8000, finance profile £272 per month over 36 months, with a final balloon payment of approx £14500 (Guaranteed). Overall APR 9.1%. (No PPI) ( I secured a £2000 discount on list price). I am very happy with the car.
The current settlement figure is £19309 (3 payments). My dilemma, I wish to pay off the loan quicker than I am already doing so that when i come to trade in (which may well be within the next 12/15 months) I have as much 'equity' in the car as possible (I realise that my orginal £8K deposit will be markedly reduced). On reflection I believe the final balloon payment is actually a little high, although it is a 'prestige' and desirable car, and maybe jusified. So what do I do?
- Overpay the current PCP loan (if I am permitted to do so by the finance company) Do they usually allow this?
- Refinance using a personal loan at ~6% over say 5 or 6 years, for a similar monthly figure acually slightly more per month). However, before doing this I need to assure my self that the rate I will reduce the 'principal sum' will decline at a higher rate than it is currently.
I hope I have made myself clear! Any thoughts?
I bought my brand new car on a PCP finance package back in September. Details are: cost price £27790, deposit £8000, finance profile £272 per month over 36 months, with a final balloon payment of approx £14500 (Guaranteed). Overall APR 9.1%. (No PPI) ( I secured a £2000 discount on list price). I am very happy with the car.
The current settlement figure is £19309 (3 payments). My dilemma, I wish to pay off the loan quicker than I am already doing so that when i come to trade in (which may well be within the next 12/15 months) I have as much 'equity' in the car as possible (I realise that my orginal £8K deposit will be markedly reduced). On reflection I believe the final balloon payment is actually a little high, although it is a 'prestige' and desirable car, and maybe jusified. So what do I do?
- Overpay the current PCP loan (if I am permitted to do so by the finance company) Do they usually allow this?
- Refinance using a personal loan at ~6% over say 5 or 6 years, for a similar monthly figure acually slightly more per month). However, before doing this I need to assure my self that the rate I will reduce the 'principal sum' will decline at a higher rate than it is currently.
I hope I have made myself clear! Any thoughts?
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