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PCP early settlement
Hello!
I have had a search through a fair few PCP posts but not been able to find much relevant to my situation.
Took out PCP 6 months ago fully intending to pay off in Dec when a 3 year ISA matured. Did't get round to it and now have the time to sort this out.
Vehicle Cash Price £17,503
Deposit (trade in) £4,500
Amount of Credit £13,003
I have just asked Skoda for an early settlement figure which appears to suggest I now owe them more money than when I started.
Agreement Balance: £13705
Interest saving: £1298
Total amount payable: £12,407
I have read that these settlement figures are based on what you owe at the time and it is better to pay off the majority of the balance then ask for a settlement? Is this right? Skoda keep saying the system calculates the numbers automatically so can't comment on how the figures are calculated.
Any tips on how to pay off this PCP as cheaply as possible?
TIA
Sharon
I have had a search through a fair few PCP posts but not been able to find much relevant to my situation.
Took out PCP 6 months ago fully intending to pay off in Dec when a 3 year ISA matured. Did't get round to it and now have the time to sort this out.
Vehicle Cash Price £17,503
Deposit (trade in) £4,500
Amount of Credit £13,003
I have just asked Skoda for an early settlement figure which appears to suggest I now owe them more money than when I started.
Agreement Balance: £13705
Interest saving: £1298
Total amount payable: £12,407
I have read that these settlement figures are based on what you owe at the time and it is better to pay off the majority of the balance then ask for a settlement? Is this right? Skoda keep saying the system calculates the numbers automatically so can't comment on how the figures are calculated.
Any tips on how to pay off this PCP as cheaply as possible?
TIA
Sharon
0
Comments
-
Looks like your payments covered mostly interest and you hardly paid any capital off. High APR and long term of PCP?
Sooner you settle, less you will pay in total.0 -
Penelopa.Pitstop wrote: »Looks like your payments covered mostly interest and you hardly paid any capital off. High APR and long term of PCP?
6.8% APR over 30 months0
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