Paying off car balloon payment

MEM62

SpaceJoe56 said:

My car finance is about to end on 2 June 2025. I have to decide whether to pay off the balloon payment of about £10,000 or trade the car and take another PCP loan for a newer car. The car is a very nice Mercedes low milage worth about £17,000. I am likely to buy the same car again, but newer. 
This makes no sense if your car is in good condition.  Essentially, you will be paying a lot of money for a different number plate
My wife wants to keep the car and not take out another 3/4 year PCP loan.
Your wife is very wise and you would do well to listen to her. 
Should I just pay off the balloon payment?
Yes
I will need to use my savings reserves which I am getting than 5% interest at the moment or should I take out a personal loan to pay the balloon payment? The best personal finance that I can find is about 9% interest.
You are considering paying 9% on a loan so that you can keep earning 5% from your savings?  This is another decision for your wife, I think :-)
Any suggestion or advice would help to make this important decision.
My suggestion - consult the wife further.

You have already spent a fortune in financing this car and you are actually considering doing the same thing with another when yours is perfectly serviceable.  Keep it, pay the balloon payment with your cash and use any money that you would have made in payments for the new one to save up for your next car so you will not need to finance it. Your future self will be most appreciative.