Ready, steady… save!
You don’t need a chart to join in. Here are 2 ways to record your savings:
1. Cross it off
Pop a chart into your first post. Saved an amount? Cross it out! Read more »
£0.01 £0.02 £0.03
2. Write it down
Skip the chart and add updates to your first post. Read more »
“Another +£3 saved today. Go me!”
Use +£ before each new saving so it counts towards your total.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
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
-
That’s ideally what I want to do0
-
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
-
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
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.9K Banking & Borrowing
- 255K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.4K Work, Benefits & Business
- 606.1K Mortgages, Homes & Bills
- 179.1K Life & Family
- 264K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards