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248 Posts
Appreciate many of you decided to pay off the PCP early to save on the interest but I have gone down a slightly different route. You can overpay your PCP to either reduce your monthly payments or reduce the term, this in effect reduces the amount of interest payable on the loan.
However, I am keen to retain the price VW guarantee my car will be worth in four years time, as long I stick to my mileage quota of 10k a year that shouldn't be a problem. Locked in with this is the support I would get from VWFS should software issues with the car persist or VW fail to crack OTA updates. So, with this in mind I am going to overpay by a £1000 at first to see how much interest this will save, then when I've sold my Type 2 pay a much larger chunk off of the car. With further updates and innovations in EV technology I want to lock in the security VWFS provide. Who knows if solid state batteries take off or 300kwh charging is the baseline four years down the line I would not want this to adversely affect my cars residual value.
However, I am keen to retain the price VW guarantee my car will be worth in four years time, as long I stick to my mileage quota of 10k a year that shouldn't be a problem. Locked in with this is the support I would get from VWFS should software issues with the car persist or VW fail to crack OTA updates. So, with this in mind I am going to overpay by a £1000 at first to see how much interest this will save, then when I've sold my Type 2 pay a much larger chunk off of the car. With further updates and innovations in EV technology I want to lock in the security VWFS provide. Who knows if solid state batteries take off or 300kwh charging is the baseline four years down the line I would not want this to adversely affect my cars residual value.