This topic contains 2 replies, has 2 voices, and was last updated by James 3 months, 1 week ago.
6 November 2015 at 4:53 pm #81571
Hi, What is the best way to reduce the amount of interest to pay on a PCP and If I pay an overpayment would my remaining payments start to reduce my balloon?
7 November 2015 at 5:02 pm #81911
18 May 2019 at 10:19 am #167826
Hi, I am looking at a PCP over 2-4 years for 13k price.
I am wondering how to reduce interest, as its 4% fixed rate and 8% APR => this is high I Know :(
I have £3K to put as a deposit, and I can pay off in 24 or 36 months with higher monthly payments. But doing the math and seeing the numbers the dealer is showing me is not helpful; mostly, what I need to know is:
1. Will my £3k deposit and paying off in 2-3 years VS 4-5 years actually reduce my interest owed?
2. Can I pay off early and still save more interest? or does a PCP act like a mortgage = interest is added at the front end of the term, so even if I make overpayments on on the PCP paid and pay off the vehicle in 2 years, on a 4 year PCP term, will the interest have already been mostly charged in the first 2 years, or am I actually saving 2 years of interest by paying off the 4 year term in 2 years?
I want to use PCP because I get a 2 free years of added dealer warrantee, and less interest rate.
Should I consider HP?