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Zopa PCP - Can you make overpayments?

IAMIAM
IAMIAM Posts: 1,394 Forumite
Fifth Anniversary 500 Posts Name Dropper
in Motoring
Does it continually update the monthly payment if you do, hence reduce total interest and monthly payment and keep the balloon payment in tact?

Comments

  • Mildly_Miffed
    Mildly_Miffed Posts: 1,832 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    The balloon will always remain the same on a PCP - it's the estimated value of the vehicle at the end of the contract.

    So, yes, overpayments should reduce future monthlies and thereby interest.
  • IAMIAM
    IAMIAM Posts: 1,394 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    Great! I plan to over pay and hope it will reduce my interest to minimal and therefore a 'free' car for 48 months and decide whether to keep or return in 4 years
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