Car PCP on credit reports

R34GTT

I've always bought cars outright but now considering a cheap PCP deal on a Nissan Leaf as it seems a great commuting car.

The current deals are 0% APR on PCP.

I'm always of the mind to keep monthly credit commitments to a minimum to assist in any future mortgage affordability calculations.

Given this, I am inclined to pay the entire 2 year PCP deal upfront which equates to £4400 and then hand the car back at the end. Assuming I can structure the payment plan this way? Or will the dealer insist on some token monthly payment, e.g. £1 a month and a slightly smaller deposit?

How would this arrangement appear on my credit report?

Would it show a total loan amount of the cost of the car including balloon payment?

If I'd paid the £4400 upfront then there'd be no installment amounts which is why I'm wondering if it would require a token £1 a month as above.

I have free access to Experian Credit Expert so am aware of how a normal loan appears as original amount, the monthly installments and term. What does PCP car finance look like?

Thanks!

Nasqueron

In terms of credit report, mine with Mazda (0% PCP) is listed on Noddle under Personal loans and mortgages. The opening balance is the total amount that I "borrowed" from the finance company (not the total value of the car as I put a deposit down). The classification is "Balloon HP". It shows the balance going down as each payment goes through.

Why do you want to pay it all up front if it's 0% though? The money earning some interest in a current account seems much better idea really to me.

R34GTT

Useful info, thanks. The reason I was thinking about paying upfront is to keep my monthly credit commitments as low as possible as these are scrutinised when affordability checks are done for remortgaging.