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Car PCP on credit reports

R34GTT
Posts: 424 Forumite
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!
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!
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Comments
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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.Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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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.0
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