Porsche PCP overpayments?

[sootyvrs]

Just wondered if it's possible to make overpayments when on an official Porsche PCP?

Are there are any benefits to making these overpayments, e.g. pay less Interest as the loan is decreasing?

Anyone doing this or have done this in the past?


Hyperthetical example -

Finance 35k
MGFV 25k after 3 yrs

If I suddenly had a spare £10k for example, could I not pay it into the finance and only leave the balloon as the balance to pay at the end of the PCP contract?

Obvious benefit is that I would save a load of Interest payments if it works like that? If all the interest is still due to be paid, then there is no advantage paying a lump sum into it... I hope you get my drift..

[Carl_Docklands]

Yes I can on my agreement. I don't know if you can if you have an old agreement as my 2009 contract did not have this option.

[sootyvrs]

Mine was taken out only last year but would like to know if there is a benefit otherwise better to leave the cash in the bank to earn savings interest (albeit at a rate much lower than what I'm paying on my Porsche finance APR).

[sootyvrs]

I have just rang up Porsche finance and yes, they do accept overpayments where you can pay lump sums and reduce the amount of interest you will pay as a result.

The only thing is that the min payments can only be reduced to £50 per month on the contract but the baloon will be reduced if the overpayment is more than what the balance is to reach the baloon figure.

I guess it was easier just to ring