Quote:
Originally Posted by AndyEssex330d
Agree with what you say RE interest, and 5.9 is steep these days, however to pay a lump sum to save on interest, to only lose it in the value of the car? - depends if OP is paying the car off or planning to PX some way through the agreement etc etc
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I still don't agree mate
No matter what he does the amount of equity in the car will be dependent on how much has been paid on the loan, the car will be worth the same no matter what.
Therefore when it's sold the balance will be higher or lower depending on the contributions
A PCP is simply a fancy name for a 'loan' with the added feature that you can sell the car back during the term.
In reality you can do the same thing if you buy the car for cash except you have to sell it privately
When I looked at a 4 year PCP at 5.9% on £32k the interest was £4500, this is lost money
What matters is the cost for the finance