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PCP Early Payment via cheaper personal loan

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Comments

  • wgl2014
    wgl2014 Posts: 1,144 Forumite
    You can always sell it after the 3 years or use as a deposit for a new car.

    To be honest though getting rid of a 3 year old car to save money on servicing and tyres is unlikely to add up when depreciation is factored in on a new replacement.
  • Hi all

    So I think I!!!8217;m going to just cancel the PCP within my 14 day cool off and buy it out right using a personal loan at 2.9%.

    I did the numbers and it works out at follow:

    PCP 48 months

    MRC - £455
    Bubble - £8999

    Total MRC - £21840
    Total if keeping (inc interest) - £30839

    Personal loan 48 months

    Total cost of car - £23450
    MRC Loan repayment - £517

    Total if keeping (inc interest) - £25,340
    Risidual value (dealer value) - £8999
    Realistic risidual value - circa 11/12

    £11,000 - £25340 = £14340

    Total cost of keeping and selling after years - £14340

    What do you guys think?
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