Paying off PCP early - impact on credit rating

chewy101

Hello. I am one month away from the end of my PCP term ending with just one payment to go. I’d like to pay it off early (pay next month’s payment this month) so that the car can be collected as I found another car on a deal I could not ignore and want it gone. I will have paid the PCP in full so does this have any impact on my credit rating? Thanks for any advice.

molerat

No negative effect, you have paid off a credit account.  Any negative effect on your file would be from the searches for any new credit.  Are you sure paying it off and letting them take the car back is the best deal ?

chewy101

Thanks, that’s helpful. My new car has just arrived and if I drive my old car I’ll exceed the mileage limit so I’m happy to have it gone and to get the drive space back.

molerat

chewy101 said:

Thanks, that’s helpful. My new car has just arrived and if I drive my old car I’ll exceed the mileage limit so I’m happy to have it gone and to get the drive space back.

It was more from the point of trading in against the new car or selling rather than just giving it back.

chewy101

I see. The ballon payment is about 5k more than market value and there are no other cars the dealership has that are suitable handing back is the best option.