How to pay the balloon payment at the end of car finance PCP

quickoldfart

I am coming to the end of a car PCP agreement and the balloon payment is approximately £10k
I have decided to keep the car so I am looking at the best way to pay off the balloon amount, ideally at roughly the same monthly amount of around £240 a month.
I thought about a 0% balance transfer card but I'm not sure if that is feasible?

Doneby55

Most finance providers won't let you pay a final payment of that size via credit card. The finance provider might offer something, or you could look at a bank loan. Depending on rates available to you and term, repayments could be under the monthly you're paying now. But obviously best to minimise term to pay off what is a depreciating asset in a reasonable time.

I assume you've checked to see if the car is worth the £10k? 

amandacat

Assuming you love your car hence why you want to keep it but you might spend around £240 a month for the next 5 years to pay it off, at which point you may be looking to get a new car. Is this a better option than changing for a new car at the end of the PCP? 
In fairness I wanted to keep mine too and recently paid off my balloon payment although mine was £6600. My options were to continue finance with VW, which they offered or take out my own personal loan for the car. 

TadleyBaggie

I paid off a balloon a couple of the years ago. The company (RCI) would only take a bank transfer, no credit or debit card payment allowed. I took out a loan with my bank @ 3.6% to pay it off.

quickoldfart

Doneby55 said:

I assume you've checked to see if the car is worth the £10k? 

Yes current value is around £13k

quickoldfart

amandacat said:

Assuming you love your car hence why you want to keep it but you might spend around £240 a month for the next 5 years to pay it off, at which point you may be looking to get a new car. Is this a better option than changing for a new car at the end of the PCP? 
In fairness I wanted to keep mine too and recently paid off my balloon payment although mine was £6600. My options were to continue finance with VW, which they offered or take out my own personal loan for the car. 

I didnt want ti tie myself into another new car at the moment, and I have only done 25k miles in this one so for me it is worth keeping for now.
Mine is also with VW finance, I hadn't thought about asking to continue with them, although the rate is a lot higher than a bank loan might be, may I ask which option you went for? Bank loan or VW finance.

foxy-stoat

Have you applied for a £10,000 loan or do you have enough credit on a money transfer card?

DrEskimo

£10,000 repaid at £240/month would take 41 months to repay, assuming you are charged no interest. 

In the nicest possible way, but do you think buying a £10k car is affordable? If it wasn't a car you had on PCP, would you be looking at buying a £10k car right now? I'm going to guess it will be out of warranty soon, if not already? What happen if it requires repairs during the next 41months? Would that require taken on yet more credit?

On_my_way

quickoldfart said:

I am coming to the end of a car PCP agreement and the balloon payment is approximately £10k
I have decided to keep the car so I am looking at the best way to pay off the balloon amount, ideally at roughly the same monthly amount of around £240 a month.
I thought about a 0% balance transfer card but I'm not sure if that is feasible?

I follow Dave Ramsey a lot too - my first thought would be can you actually afford to keep this car? Do you really want to get another loan out for it?

quickoldfart

foxy-stoat said:

Have you applied for a £10,000 loan or do you have enough credit on a money transfer card?

Neither, I have a couple of months before the end of the original agreement, I am just after advice on my options.

quickoldfart

DrEskimo said:

£10,000 repaid at £240/month would take 41 months to repay, assuming you are charged no interest. 

In the nicest possible way, but do you think buying a £10k car is affordable? If it wasn't a car you had on PCP, would you be looking at buying a £10k car right now? I'm going to guess it will be out of warranty soon, if not already? What happen if it requires repairs during the next 41months? Would that require taken on yet more credit?

That is very presumptuous of you to assume my circumstances, I am more than comfortable enough to make any repayments or repairs should they happen. it just fits my circumstances to not invest in another brand new car right now, plus I really like this car.
This forum unless I am mistaken is about saving money, that is all I was enquiring about.