HELP! Paid off PCP early!

amyjanebeans

Help! I stupidly just paid off my PCP early (£6500) and now don't think it was the right move. I called the bank immediately to cancel the transfer but they can't do it. They said to contact Northridge Finance (who I have the PCP with) to ask to cancel it and set up the monthly direct debit to them again instead. They are closed today! Does anyone have any experience of this? Do you think they are likely to refund this payment and let me set up the direct debit again? I'm going to stress all weekend now.

[Deleted User]

Probably not, but you'll have to wait until you can speak to them.

jonesMUFCforever

You obviously had the money to make the transfer so why was it a stupid idea?
You can now start to rebuild your savings using the money that you used previously to pay for the car.

IMO they won't refund you.

Terry_Towelling

Could you explain why you don't think it was the right move? Was the PCP a 0% deal?

DrEskimo

Terry_Towelling wrote: »

Could you explain why you don't think it was the right move? Was the PCP a 0% deal?

Yea do you have details of the PCP finance that you cleared?

amyjanebeans

It's not so much the deal. I will have saved money, ultimately, by paying it off. But my ex said I should have kept it because I'm moving house soon so the money would be better going towards that.

DrEskimo

amyjanebeans wrote: »

It's not so much the deal. I will have saved money, ultimately, by paying it off. But my ex said I should have kept it because I'm moving house soon so the money would be better going towards that.

Any borrowed money will impact your mortgage application, as will the monthly payment on your affordability checks.

I suspect you could probably borrow £6,500 from a bank at a cheaper cost, so you are free to do that if you want to use borrowed money to pay for a house move. The same logic applies. Whether it's borrowed against the car, or an unsecured loan in your name makes no difference.

Honestly I would not stress. By all means, see if you can get it refunded by ringing the finance company on Monday (no idea how likely this is), but I don't think it was a bad idea at all.

Moneyminded

I doubt they will refund the money. Either way maybe the lesson from this is to take at least 24 hours in future to thoroughly consider any large purchase or big financial decision.

As long as you have money set aside for the house move you are fine and there is nothing to worry about.

Terry_Towelling

How soon will you be moving? The monthly payments you are no longer ploughing into the PCP can now be diverted into a savings account to mitigate the issue and provide some funds to help the move.

By the way, do you think your ex is right? (who listens to their ex?) Do you also believe you will now be short of funds to facilitate your move?

username901

Well you now have less debt, so potentially can access a larger mortgage, you will have saved money in the long run, and now own an asset worth hopefully at least £6500. At worst you can sell it.

tommyedinburgh

She is your ex for a reason. Ignore her!