PCP mileage

Nasqueron

AdrianC wrote: »

Mileage is relevant, in that it affects the amortisation curve of the amount you repay, which affects the total interest repaid.

Let's say you borrow £15k (balloon + amount repaid) at 5% APR over two years.

You look at the options - a lower mileage means £10k balloon, a higher mileage means £5k balloon. The mileage you're planning on covering is irrelevant, because you know you want to buy the car at the end.


The £10k balloon gives monthlies of £261 with £1264 total interest, while the £5k balloon gives a much bigger monthly - £460 - obviously, since you're repaying £200/mo more of the borrowed money... And that means total interest of £1029. You can pay 22% more total interest if you wish, but...

As above, mine was on 0% hence why I didn't buy it outright

Crumble_

0% for 3 years and save up for the balloon at the end.

For servicing did it stipulate you have to use their garage / make of car’s garage?

neilmcl

Crumble_ wrote: »

0% for 3 years and save up for the balloon at the end.

For servicing did it stipulate you have to use their garage / make of car!!!8217;s garage?

Again, it doesn't matter if you're planning on keeping the car. If in doubt read your agreement.