Pay off PCP early??

CrystalTips81

Hi
I have a car, financed with PCP. Payments are £400 per month, which finish in April 2022, with the final balance payment circa £9k.  Total payment if I let the PCP run for its' lifetime including final balance payment would be circa £17k.  APR on PCP is 7.6%
I've obtained a settlement figure today which is £15,700. 
I'm considering taking a loan, at an APR of 2.8% to settle the PCP, which over the life of the loan would cost me circa £16k.  It would also reduce the monthly payments to £269 per month, which again I'd look to overpay. I've worked out the financial saving on settling early, even with a personal loan, is £1k.  
I intend to keep the car because I love it, i know it's history (it was new) and I'm not one who chops and changes car regularly.  

I also have £24k in cash as savings, but with the current climate i'm unsure about using this to settle any debt just in case it's need.  No job loss is expected, but you just don't know at the moment. 
What do other forum users think?  This is my only debt besides the mortgage, which I also manage a small overpayment on. 
I can manage the monthly payment of £400 and i'm not struggling financially.  As I intend to keep the car, i'm considering paying for it over a longer period of time, which also seems to save me money (1k) as mentioned above.  I also view it as a way of not having to pay extra money to a loan company by thinking creatively. 
I thought i'd come on here and seek advice.  I was raised to keep financial arrangements simple, and this seems to be the right thing to do, but i'm welcome other, perhaps more informed, comments and opinions.  
Thanks in advance for taking time to read this post. 

[Deleted User]

I'd use your savings and rebuild them at £400 a month or more.

foxy-stoat

You may or may not get another loan and it may or may not be 2.8%.

Use the savings and rebuild @ £400 a month is the best way forward - you will have £15K in the car (at the moment) in case of emergency you can always sell it and buy a cheaper car.

DrEskimo

As above. There is no guarantee you will get 2.8% whilst you have a PCP loan outstanding.

It also makes no sense having cash savings whilst you are paying 8% interest on loan (it's actually costing you more than a personal loan at the same APR, as you are paying interest on the balloon payment without paying down the balance).

You will still have £10k in savings and that's a decent safety net. Obviously you can build it pretty quickly with the monthly cost you are no longer paying.

CrystalTips81

Thanks for your helpful comments - I really appreciate it. Sometimes you can get so mixed up when things go round in your head you lose sight of what’s really sensible.