PCP car finance quandry advice needed

motorguy

jmb1 wrote: »

Is this maths right?

Settlement £8581.25. So, either:

1. Continue paying £250 month for 14 months =£3500. Then take out £5072.50 loan for balloon payment, £114 per month over 4 years(£360 3.5% interest ) = £5472. Grand total payable = £8,972.
2. Pay £8581.25 settlement, on £190 per month personal loan over 4 years (£529 3% interest) = Grand total payable = £9120.

So
1. Is cheaper option overall but £60 more per month.
2. Is £148 more overall but £60 cheaper per month.

Are they really not giving you ANY discount for settling early?

By those figures, they're charging you all the interest for the remaining payments anyway. That surprises me greatly.

jmb1

motorguy wrote: »

Are they really not giving you ANY discount for settling early?

By those figures, they're charging you all the interest for the remaining payments anyway. That surprises me greatly.

I did it online and it produces a pdf. On that it quoted a 8900ish still remaining, then minussed 450ish in interest as a rebate to arrive at that figure. Would I get a better figure if I rang them maybe?

motorguy

jmb1 wrote: »

I did it online and it produces a pdf. On that it quoted a 8900ish still remaining, then minussed 450ish in interest as a rebate to arrive at that figure. Would I get a better figure if I rang them maybe?

£8900 ish remaining suggests maybe 16 payments remaining, not 14? That might be where the figures are messing up?

jmb1

motorguy wrote: »

£8900 ish remaining suggests maybe 16 payments remaining, not 14? That might be where the figures are messing up?

Not in front of paperwork but feb 2017 purchased, 48 monthly payments total 4 years

parking_question_chap

Dont keep going on the PCP merry go round. The only winners are the finance companies. Get the timing belt done and keep the car for a long time. No reason it cannot carry on for another ten years if looked after.

The £6,000 current value is totally inconsequential if you never sell the car.

onomatopoeia99

parking_question_chap wrote: »

Dont keep going on the PCP merry go round. The only winners are the finance companies. Get the timing belt done and keep the car for a long time. No reason it cannot carry on for another ten years if looked after.

Or longer. My car will be 20 years old in March. I've owned it since 2004.

NickVa

We are considering the same options as we are in month 30 of a 48 month pcp deal. Regarding the VT criteria can anybody clarify why the final balloon payment is included in the 50% calculation.

AdrianC

NickVa wrote: »

We are considering the same options as we are in month 30 of a 48 month pcp deal. Regarding the VT criteria can anybody clarify why the final balloon payment is included in the 50% calculation.

Because it's money you've borrowed and are paying interest on...

motorguy

NickVa wrote: »

We are considering the same options as we are in month 30 of a 48 month pcp deal. Regarding the VT criteria can anybody clarify why the final balloon payment is included in the 50% calculation.

The legal right to VT was brought in to ensure that people who could no longer afford to keep their cars werent unfairly pursued for disproportionate fees or charges after they had returned their car.

Voluntary Termination allows people to return a car at ANY time, safe in the knowledge that they wont be pursued for more than 50% of the total transaction value (subject to fair wear and tear).

You dont have to have paid 50% but you can expect to be billed for the difference if you havent.

PCP finance is a form of HP finance, so all of the above applies to it.

JackeeBoy

Use an interest free credit card to pay the balloon payment.