Question about shifting car finance

Dontletmeletyougo

Hi hope noone minds me posting this.

I currently have a car on finance which has 3 years left before I pay a lump sum. Im not 100% sure what the interest rate is, I can do some digging on that later.

I think my outstanding balance at the moment is about £11500.

When the 3 years was up I planned to pay the lump sum and to keep the car. However I've been pondering whether I'd be able to transfer this to a much lower interest rate loan or do a balance transfer to a credit card?

I'd then plan to pay what I currently pay for my car but also snowball money at it to pay it off sooner than later.

Do I sound absolutely crazy? I'm sure I'm wrong in thinking I can do this?

National_Debtline

Hi there,


Well the first thing to do is check the type of finance you have on the car, it certainly sounds like either a hire purchase or personal contract purchase agreement, but you need to check this (as it may effect the settlement figure) and also whether or not there is any penalty for settling the finance early?


If you can pay the balance off with cheaper credit then that may be worth considering, but be careful that do actually pay as much to the new credit as what you currently plan to. If you don't, then this is where people can get into a mess and you risk paying interest on top of interest and not saving yourself as much money as you think. Good luck,


Laura
@natdebtline

Dontletmeletyougo

Hi yes it's a pcp deal. Like you advise I would check whether this is okay to do.

I just didn't know if I could change finance over to a different type of finance.