I make ~£58000 a year post-tax
I have a 2019 car, ~£18000 loan, 9.9% APR, 3 year long, £1000 down initially + £600 trade-in of my old car as scrap
I pay £220 a month (this includes warranty and breakdown coverage extras)
Instead of giving the details on how I couldn’t find a better option at the time, me explain my thought process:
I’m basically treating it as a lease. Right now I don’t care or think about paying this off at the end of the PCP. I’m just paying £220 a month to have the car, which doesn’t seem a bad deal to me. I can comfortably afford it. At the end of the term I can then figure out what I want to do potentially in a world with better rates OR in a situation where I have the cash to buy outright or some other more financially savvy deal. This just feels like an interim solution to me.
Is it crazy to think this way? If I have no intention of paying off the loan am I still suffering the evils of high APR? Does it still make no financial sense? Would UKPF still be screaming at me to pay it down as fast as possible?
Interested to hear what you guys think!
I have a 2019 car, ~£18000 loan, 9.9% APR, 3 year long, £1000 down initially + £600 trade-in of my old car as scrap
I pay £220 a month (this includes warranty and breakdown coverage extras)
Instead of giving the details on how I couldn’t find a better option at the time, me explain my thought process:
I’m basically treating it as a lease. Right now I don’t care or think about paying this off at the end of the PCP. I’m just paying £220 a month to have the car, which doesn’t seem a bad deal to me. I can comfortably afford it. At the end of the term I can then figure out what I want to do potentially in a world with better rates OR in a situation where I have the cash to buy outright or some other more financially savvy deal. This just feels like an interim solution to me.
Is it crazy to think this way? If I have no intention of paying off the loan am I still suffering the evils of high APR? Does it still make no financial sense? Would UKPF still be screaming at me to pay it down as fast as possible?
Interested to hear what you guys think!