Car personal contract plan (pcp) - paying off early?

livingstonc

Hi all,

We currently have a Car PCP which has 26 months still to run, it is 10.5% APR and early settlement figure is just under 10,000. Pay approximately 218.00 per month.

We are potentially looking at paying it off and just wondering if worth it? Any advice?

For example cheapest loan is around 4.5% APR costing approximately 405.00 per month over 26 months? We are aware that this will be more than currently paying due to balloon payment, GMFV.

Looked at maybe 0% APR credit card (such as Nationwide) but can't get the 10,000 for a balance transfer?

Lastly, we do have enough savings to pay it off, but would leave us with no savings?

Any help, thoughts are most welcome as we currently don't know what to do?

tinkerbell28

If you have debt, you don't really have savings do you? The balance sheet is zero if your debts match your savings.

So at 10.5 apr on an expensive PCP deal. Using your savings is an absolute no brainer IMO.