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Can you overpay PCP finance?
Example.
Car is 20k
Deposit 5k
10k over 48 months
GMFV 5k
Effectively over pay by 9k, have 1k on monthly payments over 48 months and know full well I have the option of returning the car or keeping it. Will this reduce interest to hardly anything and payments which are minimal monthly amounts over 48 months?
Car is 20k
Deposit 5k
10k over 48 months
GMFV 5k
Effectively over pay by 9k, have 1k on monthly payments over 48 months and know full well I have the option of returning the car or keeping it. Will this reduce interest to hardly anything and payments which are minimal monthly amounts over 48 months?
0
Comments
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That’s ideally what I want to do0
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It depends.
Some companies will let you others will let you pay off the loan part but not the balloon part.- unless you are paying it all off.
It's all in the terms you signed up for.0 -
Its BMW Approved Used I am looking at0
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Look at your agreement or phone them up .IAMIAM said:Its BMW Approved Used I am looking at0 -
Yes you can, I think the minimum monthly payment has to be £25.IAMIAM said:Example.
Car is 20k
Deposit 5k
10k over 48 months
GMFV 5k
Effectively over pay by 9k, have 1k on monthly payments over 48 months and know full well I have the option of returning the car or keeping it. Will this reduce interest to hardly anything and payments which are minimal monthly amounts over 48 months?
1 -
Is interest effectively eradicated then, if I get my monthly payment down to £25 after say month 3 of a 36/48 month pcp agreement?jay1804 said:
Yes you can, I think the minimum monthly payment has to be £25.IAMIAM said:Example.
Car is 20k
Deposit 5k
10k over 48 months
GMFV 5k
Effectively over pay by 9k, have 1k on monthly payments over 48 months and know full well I have the option of returning the car or keeping it. Will this reduce interest to hardly anything and payments which are minimal monthly amounts over 48 months?0 -
No, because you pay interest on the GMFV (£5k in this case) for the entire duration.IAMIAM said:
Is interest effectively eradicated then, if I get my monthly payment down to £25 after say month 3 of a 36/48 month pcp agreement?jay1804 said:
Yes you can, I think the minimum monthly payment has to be £25.IAMIAM said:Example.
Car is 20k
Deposit 5k
10k over 48 months
GMFV 5k
Effectively over pay by 9k, have 1k on monthly payments over 48 months and know full well I have the option of returning the car or keeping it. Will this reduce interest to hardly anything and payments which are minimal monthly amounts over 48 months?0
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