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Partially paying off car pcp
bellabooski
Posts: 164 Forumite
in Loans
Hi Everyone
I am 6 months in to a 40 month PCP on my car. I intend to keep the car for many years now and want to make a partial payment leaving a balance of £1750.
My question is, the finance company give you a choice of reducing the monthly payments or reducing the term. I'm guessing that reducing the term would reduce the interest paid.Have I got this right?
Thankyou you in advance for your kind advice
Bella
I am 6 months in to a 40 month PCP on my car. I intend to keep the car for many years now and want to make a partial payment leaving a balance of £1750.
My question is, the finance company give you a choice of reducing the monthly payments or reducing the term. I'm guessing that reducing the term would reduce the interest paid.Have I got this right?
Thankyou you in advance for your kind advice
Bella
0
Comments
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It depends on where you are going with it.
If you reduce the payments, it may free up cash to make another overpayment, or pay off entirely.
If you reduce the term, it will save the maximum interest, assuming that you don't make any further overpayments after this one.0 -
OP, post 2 is a bit confused. The simple answer to your question is yes.0
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Check also, that if you pay off a lump sump which it comes off the balloon or rental payments. As likely to come off the rentals poss leaving the balloon due straight awayDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Thankyou everyone for your prompt and helpful advice. It is very much appreciated. 0
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