Pcp finance, up the payments?

lcstress2012

I have a pcp from 2017 at €300 per month. I’m going to keep the car so want to up the payments so the gmfv can go down (balloon payment). Anyone ever done this. Do I contact dealer or finance company ?

Outkast_IRE

lcstress2012 wrote: »

I have a pcp from 2017 at €300 per month. I’m going to keep the car so want to up the payments so the gmfv can go down (balloon payment). Anyone ever done this. Do I contact dealer or finance company ?

Probably just as easy if you set that money aside yourself toward the payment at the end . What do you think the advantage is of upping the payment ?

Wildly Boaring

Direct debit into a credit union acc monthly.

Harder to get at.

Have it as a lump toward the balloon when due.

Little to be gained putting toward the monthly.

is_that_so

lcstress2012 wrote: »

I have a pcp from 2017 at €300 per month. I’m going to keep the car so want to up the payments so the gmfv can go down (balloon payment). Anyone ever done this. Do I contact dealer or finance company ?

You're into your last year and I doubt you can do it as you have signed a contract at a fixed rate but certainly save the money.

mickoneill31

I had a Pcp several years ago. I got onto the finance company and asked them how to pay it off early. Was relatively simple. They just gave me the final amount and the account number.
I was paying interest at the time so paying it early saved me money.

The car dealer wasn't involved at all. He actually rang me a year later asking what I wanted to do at the end of my agreement. He didn't know I'd already paid it off.

bazz26

All the PCP interest in included in the monthly repayments over the 3 years anyway so your not saving anything by overpaying the monthly amount. Best put the extra money into a savings account until the PCP term matures.

Lantus

Gmfv remains the same irrespective of payment amount. You either made a large or small deposit and the difference is your monthly.

Begin saving the difference in a seperate account and use this as a lump sum to pay off. Any remainder is a bank or credit union loan.

Dealers finance might not let you do this so check if your planning on using say vw finance to settle.

Shefwedfan

Depending on your interest rate you could take loan out now and buy out car before end of pcp, you are probably getting a better rate with pcp so just save the extra and take less of a loan to buy out car