Questions on PCP or HP for my CS-S ...?

[GT4]

Hi

Could anyone please advise ... firstly who is buying their CS-S with PCP @6%  ...?

Also, if you take say a 3 year PCP and want to pay it off after 12 months - how is the interest and final payment calculated ??

Is a normal loan a better buy if your going to pay off early term ..?

Many thanks
Andrew

[wigit]

They give you a settlement figure at the end of the nearest month and I think there is a admin fee.

Only time I have ever used it is to get a bigger deposit contribution and then settled in the cooling off.

[monkeyhanger]

You pay a small admin fee + 2 months interest + all the capital you still owe. In the early days of the loan your payments will be somewhere around a 60:40 split of capital:interest. If you borrow £30k over 3 years at 6%APR, about £1700 of your 1st year payments will be interest with £5k deposit and about £400pm payments.

At the end of year 1 then, expect about £350 in charges to settle early.