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Loan to pay off car HP - Have I done my sums right?

MeadowsVale
MeadowsVale Posts: 42 Forumite
10 Posts Name Dropper First Anniversary

I owe £19,667.01 on HP car finance which runs until November 2028 then the car will be paid off and will be mine.

I got a settlement figure which is currently £17,131.97 - a saving of £2,535.04 in interest if I paid it off now. I think the agreement is 12% APR.

I've been pre-approved for a personal loan of £17,000 over 36 months at 6.64% APR which I will owe £1,742.18 in interest.

Is this a no brainer or am I thinking wrong?

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