Paying off the wheels - 3 year debt into 1

2

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  • Zola.
    Zola. Posts: 2,204 Forumite
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    LittleMissKitty wrote: »
    Good luck, not that you appear to need it you're doing amazingly well!

    Thanks, its going down well so far, hopefully get a few more overpayments soon
  • Plumjam
    Plumjam Posts: 73 Forumite
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    edited 1 April 2018 at 8:49AM
    Just one thing about PCP - you can sometimes get good deals or extras on your new car by taking out an agreement but there's nothing stopping you from paying it off in full immediately after you pick up your car. I bought a new car last year. The dealer wouldn't give me anything extra for cash but I got a £500 deposit contribution and a 5 year warranty for taking out the PCP agreement. I let one payment go through, got a settlement figure and then paid the rest off - all done online, no conversation needed. Paid about £50 in interest but it was definitely worth it.
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
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    We had planned to save for a car and pay cash but my 12 year old astra gave up before we had saved! Now we plan to do the same as you. There are little charts you can print off where you colour a section in each time you make a payment! Car finance doesn't have to be a fact of life. If you have spare cash it makes perfect sense to do what you are doing and have more cash spare for other things.
  • twisting
    twisting Posts: 16 Forumite
    Well done! We are working on something similar - I got a settlement figure last week and it's £1631, so we're very close...but I wish I'd seen sense years ago, it's on a shocking 11% APR. We'll be driving it into the ground.
    January grocery challenge £111.35/£400
  • Zola.
    Zola. Posts: 2,204 Forumite
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    I paid another £1000 to the loan this morning (taken from savings), its now sitting at £2,302. Its going down nicely, but still a pain to see the interest going up everyday!

    I am hopeful of getting a bit of freelance work this weekend which will enable me to either pay more off the loan or else put that back into savings which I have just sent over to the loan account.
  • Zola.
    Zola. Posts: 2,204 Forumite
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    Standard payment came out there on the 1st as normal, and I made a lump sum of £400 after a relatively quiet month!

    Loan now down to £1,685!
  • chelseablue
    chelseablue Posts: 3,303 Forumite
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    Following with interest :) We had to buy a car in March and took out a loan from Nationwide.

    We do have savings that would more than cover it but that's for our wedding in June and holiday to Australia in December.

    Outstanding loan amount is £5,800 with 4 years to go, interest is 4.5% and the monthly payment is £136

    If only I wasn't getting married :rotfl: I could pay it off tomorrow
  • Zola.
    Zola. Posts: 2,204 Forumite
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    Another £500 overpayment made just now, taking the bill down to £1190

    With tomorrow being the 1st if the month the regular payment of £219 will come out, which will take it down to £971. :)

    The end is in sight!!
  • Zola.
    Zola. Posts: 2,204 Forumite
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    Sitting at a figure of £971, hoping to do another overpayment at the end of the month. All being well I can have this cleared by the end of August

    :beer:
  • Zola.
    Zola. Posts: 2,204 Forumite
    First Anniversary Photogenic Name Dropper First Post
    I have just made a call to pay off the rest of the loan, the early settlement figure was £977, not too bad. The car is now 100% paid off! :D

    That will free up a nice chunk of £219 a month going forward which will be a welcome boost!

    Boom! :beer:
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