PCP calculation advice

Deetyler14

Hi guys 

I was wondering if you could help me decide which way of paying for my new car will cost less overall. Cash price is £31500. Yes I’m aware that’s alot but that’s my choice 😊

I have about £5k to use towards the car.

I currently have a 2.9% bank loan. The settlement on that is about 2k less than my current car is valued at with 42 months left. I currently pay £300. I can sell this without it being needed for the pcp deal. 

I can put 1000 deposit down and then pcp payments would be 576. I could keep my low rate loan and then transfer the difference of £276 from the £5k and it would cover 18 months of payments (usually about the time I could trade in)

Is there anyway of knowing what the settlement figure would be by then???

or I could sell my current car and get a cash transfer off my credit cards of interest free for 12 months for the balance of £1750 - again using the 5k to make the payments for a year (just thinking of the interest. After 12 months I’d have about 20k left to pay 

Just working out what it would be. I could put 5k in (with the 2k equity off current car) but that would take my payments to £435

any help would be grateful as this is all going over my head, thanks 

MorningcoffeeIV

Deetyler14 said:

Hi guys 

I was wondering if you could help me decide which way of paying for my new car will cost less overall. Cash price is £3150. Yes I’m aware that’s alot but that’s my choice 😊

That's not a lot. Have you put the right figure down?

Should it be £31,500?

Deetyler14

Yea thank you, updated 

Dave_5150

Deetyler14 said:

Hi guys 

I was wondering if you could help me decide which way of paying for my new car will cost less overall. Cash price is £31500. Yes I’m aware that’s alot but that’s my choice 😊

I have about £5k to use towards the car.

I currently have a 2.9% bank loan. The settlement on that is about 2k less than my current car is valued at with 42 months left. I currently pay £300. I can sell this without it being needed for the pcp deal. 

I can put 1000 deposit down and then pcp payments would be 576. I could keep my low rate loan and then transfer the difference of £276 from the £5k and it would cover 18 months of payments (usually about the time I could trade in)

Is there anyway of knowing what the settlement figure would be by then???

or I could sell my current car and get a cash transfer off my credit cards of interest free for 12 months for the balance of £1750 - again using the 5k to make the payments for a year (just thinking of the interest. After 12 months I’d have about 20k left to pay 

Just working out what it would be. I could put 5k in (with the 2k equity off current car) but that would take my payments to £435

any help would be grateful as this is all going over my head, thanks 

Yes, you can calculate this if you know the final baloon payment, deposit, monthly payment, finance rate and contract duration

MrFrugalFever

Buying the car on PCP is the most expensive way to finance it.

Please provide more detailed figures, I.e. how much your car has been valued at (at dealerships, not online and not a guess by yourself), you may be better off using this to fund a Hire Purchase agreement instead.