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PCP Car Payment interest
kingsleysmithp
Posts: 4 Newbie
in Loans
I have a citroen which I purchased on PCP 2 years ago (2 years remaining on contract). I'll have a balloon payment of £4000 in 2 years and I'm paying £270 per month. If I make overpayments does the amount of interest I'm paying decrease? I see in my Amortisation schedule my interest payments decrease over time - am I right to think that these would drop further If I paid off a chunk upfront?
0
Comments
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Yes. Each finance company will handle overpayments on a PCP differently, but I suspect most will keep the balloon payment the same, keep the term the same, but just reduce the payments.
I would ensure each month you make an overpayment to maintain the same monthly payment in addition to any extra overpayments.0
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