Pcp immediately after a loan.

Arthurarthur52

Hi. I think we have a excellent credit rating - couple of cards snoozing but not enough to confuse us. And all have high limits with all the months spending paid in full

I felt the need to get another car, had mine 7 years - love it to bits but reached the time it’s costing me in relation to the amount of mileage I do and hours I work.

Borrowed £10k over 60 months interest is only 700

I have now negotiated a deal on a new car through a 4 year pcp. My car and £1k as deposit 48 at 184 and 4K balloon so £2k dearer but no tax 540 and no fuel as electric and we get free charging

Question is would I qualify for a pcp so soon loan would be 60% or cost and take the DD from the account holding the loan currently getting interest or should I return the loan and stick with the pcp only.

Arthurarthur52

Forgot to add loan at 2.9-%

Car costs me around 1425 a year for tax mot and petrol / oil so 4 years also 5700

New car tax nil 2 free services no mot for 3 years and free electric.

I would rather snooze the money but who thinks it may be possible.

Ben8282

Are you saying that you have taken out a loan for £10k at 2.9% APR for the purpose of getting interest on the £10k in a bank account? This is strange stoozing. What rate of interest does this bank account pay on the £10k? You say the interest on the loan will be 'only' £700. This means the bank account will have to pay you £140 a year interest just to break even without any consideration of any income tax you will have to pay.

It is difficult to directly answer your question. Having just borrowed £10k plus you have said you also have credit card debt for an unspecified amount (the fact that you are stoozing is not relevant) it may be difficult for you to obtain further finance at this time. It really depends on your income and affordability.

DrEskimo

How much is the PCP loan costing you in interest?

foxy-stoat

Pay the loan back and buy your new car on PCP.