PCP finishing early and ‘balloon’ payment?

[Mckayi]

Hi this may well have been answered in a number of threads! That I haven’t been able to find!

Anyway, if I decide to pay off my PCP early, what happens about the final balloon payment due?
I am getting a bit confused.

The total amount payable on credit agreement is £15,500 approx
My agreement is for 48 months with a final (balloon) payment of £4000.
My early settlement figure is approx £10,000 (I can get a better loan for this)
BUT.. does it mean I still need to pay the £4000 and if so when? And to whom ???

[duckson]

No that is included in the settlement figure......you are settling the finance in total.

[Scottchester]

As above the settlement figure is the amount you pay.
I'm literally doing the same thing this week, price between what the dealer will give me and what I owe is about £2k so i'm basically paying £2k to end early

[Scottchester]

P.s the difference between the outstanding balance and the early figure is usually just an interest rebate. The different between your 2 numbers (unless there is a very high interest rate) seems out of sync
For example my £12k balance has and earl settlement rebate or £511

[Wooda80]

Scottchester said:

P.s the difference between the outstanding balance and the early figure is usually just an interest rebate. The different between your 2 numbers (unless there is a very high interest rate) seems out of sync
For example my £12k balance has and earl settlement rebate or £511

I read it as the total amount payble under the original finance agreement was £15500, rather than that being the amount outstanding before a rebate for early settlement on the settlement letter.

Guessing that the OP has repaid a significant amount of the £15500 already, either through the initial deposit or the number of payments.

In any event, as others have said the settlement figure is the amount needed to settle the agreement in full, including the final balloon payment

[Mckayi]

Thanks everyone