End my PCP car finance agreement early to avoid higher interest rates after April? Or stay til end?

frangipan23657

I have a PCP contract with Alphera ending in July. I got a brilliant deal in 2020, but rates are already going up now for similar deals.

Will I save much £ if I end my contract early and seek another agreement before April when interest rates will rise (even with the remaning left on my agreement), or shall I just stick it out til July?

Grumpy_chap

frangipan23657 said:

I have a PCP contract with Alphera ending in July. I got a brilliant deal in 2020, but rates are already going up now for similar deals.

Will I save much £ if I end my contract early and seek another agreement before April when interest rates will rise (even with the remaning left on my agreement), or shall I just stick it out til July?

Why are you starting from the default assumption that you need a new car and new PCP from July?

If you do choose to go for a new car, with current lead times there is no guarantee that April or July delivery will be achieved, depending on the type of car chosen and how particular you are for make, model, options.

Too little information to say whether to stick or twist the current deal.  The starting point in that assessment is the settlement figure and what you can sell the car for.  MSE approach is likely to settle the finance and keep the current car assuming you have that amount available to clear the balance.

Mobeer

If you like your current car why not keep it?

Flight3287462

You are too late to order a new car now for delivery in April and I would think even July would be optimistic.

If your looking for any VAG group cars I suspect they will take even longer with the loss of over 4,000 off the Azores last week on the car carrier the Felicity Ace.

motorguy

As per the above comments, if you like the car either pay the balance outright or take out a cheap loan for it and drive on.

Deals on new cars at the moment arent particularly palatable as new car availability is very low, therefore discounts arent available to any great extent and PCP incentives arent great either.