Personal Loan to pay PCP Balloon

hufc2002

Hi all

So my 48 month PCP is up with BMW in the summer and so my balloon payment is due in August.

At this point in time I plan to buy the car (via a personal loan) as the car is worth more than what I will owe (circa £11k).

At what point would you advise I apply for the loan? Is there anything that I need to be aware of as I am technically borrowing money to pay off an existing debt?

Thanks in advance.

[Deleted User]

Affordability is normally the key problem in consolidation, so consider your debts and income and see if anything can be done to improve that ratio.

lopsyfa

You can apply anytime you like. If you get a competitive loan rate (lower than your current PCP rate), you can apply for the loan now and settle the finance early. It should save you a few months interest.

anto164

lopsyfa wrote: »

You can apply anytime you like. If you get a competitive loan rate (lower than your current PCP rate), you can apply for the loan now and settle the finance early. It should save you a few months interest.

This is what i did, i had a car on a 4 year pcp, after 3 years, i got a personal loan and settled the finance, so i owned the car out-right. Saved me about (at a guess) £400 in interest as the car finance was at 6.9%, and the personal loan was 3.3%.

So any time. You could apply today, get the money instantly, and pay the balance same day if you wanted.