PCP

[Kezzie200]

We've found a car we like and we can afford to pay for it.

However, if we take out a PCP they will pay £2000 towards it, and the interest is only £1500. So, it's worth doing even if we run it the full term.

The sales lady suggested we repay after a few months to save even more. They will charge us the final payment plus outstanding finance plus a bit of the interest, but not all.

Is that right?

Yes. I bought my last car on a PCP to get the best price. I cancelled it the following day and paid it off, no charges to pay or interest.

Cool. Thanks. That concurs with the sales lady. She says it's the only deal she can do on it and a 2k saving isn't to be sniffed at.

Cheers

Yes, it's weird. A few years ago I did a PCP on a car that I was going to pay cash for but by doing the PCP, it was interest free credit plus free 3 year service plan and breakdown cover, they were not willing/able to match or beat the PCP offer paying cash. I didn't repay early as it was interest free and just left the money in a savings account, but I could have done if I'd wanted to.

I feel better now! We only change about once every ten years, so this is new to me. Although not as good a deal as the 0 percent you got, its low interest and there's a saving of 500 even if we see it through.

What we will try and do is settle it quickly, at least choosing that option is the right one. Choosing a car was hard enough at the moment!

Thanks for all your help

Good luck with the new car -it is all very exciting if you don't change it that often.