PCP Overpayment Calc

simpson_77

Hi All,

Anyone know an easy way to calculate overpayments on a PCP?

Currently paying £670 p/m
Outstanding balance £56,000 ish
Agreements end 03/2021
GFV £33,000 ish

Want to start overpaying (lump sum and monthly) to reduce the contractual payments, but wanted to have a play with the figures first?

Is there an easy way to calculate say every £1k I clear will reduce the payment by X?

Thanks,

[Deleted User]

Does the agreement allow for the monthly payment to be lowered as a result of overpayments?

simpson_77

Deleted_User wrote: »

Does the agreement allow for the monthly payment to be lowered as a result of overpayments?

Yes, overpayments are allowed

[Deleted User]

I know overpayments are allowed - but does it allow for the monthly payment to be lowered as a result?

simpson_77

Yes it does

DrEskimo

You could try this:

http://www.pcpcal.co.uk

To save the most interest you want to maintain the same monthly but either reduce the term or pay down the GFV.

Is it 0% APR?

simpson_77

I think its about 5%, cant find the agreement! Will call them and find out

DrEskimo

simpson_77 wrote: »

I think its about 5%, cant find the agreement! Will call them and find out

The there isn't something quite right with your numbers...

£670 paid up until 03/2021 doesn't even cover the capital you need to repay (£56k - £33k = £23k), let alone any interest payable on top...

simpson_77

DrEskimo wrote: »

The there isn't something quite right with your numbers...

£670 paid up until 03/2021 doesn't even cover the capital you need to repay (£56k - £33k = £23k), let alone any interest payable on top...

Got my agreement and it is 5%. Settle in full is £49k or partial settlement is £21k + £25pm until 2021then the GFV which is just over £30k. So I think I was close enough from memory...;)

It works out approx £30 p/m cheaper for every £1k paid extra. Paying the £21k now + £25*36 will save approx £1.6k in interest.