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Is it wise to pay off my PCP (9.1%) with a Tesco Loan (5.8%)

IAMIAM
IAMIAM Posts: 1,400 Forumite
Fifth Anniversary 500 Posts Name Dropper
edited Today at 5:20PM in Loans
PCP 9.1% expires Aug 2029 (4 Years)
GMFV - £9870
Monthly Payments - £74

Comments

  • jaybeetoo
    jaybeetoo Posts: 1,420 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited Today at 5:46PM
    You need to factor in the depreciation of your car.  Our previous car was worth far more than the GMFV so we bought it.  Our current car is depreciating much faster than the PCP expected so we would not pay off the PCP early or at the end of the lease,it’s better for us to hand the car back.
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