pay of PCP on car, some of mortgage or keep savings

[cooper2000]

I have some money in a cash ISA earning only 0.2% interest thinking it may be best to pay off my PCP on my bmw X3 ( bought to opt out of company car 3 years left of 4 year deal) interest is 5% or pay off some of a buy to let mortgage that I currently have at 3% interest. Just not sure on the PCP as residuals for a diesel x3 in 3 years may be lower than the £16000 i would still owe with 80,000 miles on the clock. other option is to risk stocks and shares isa but not sure where to start on them.

[The Cardinal]

It's difficult to recommend a course of action without more details, but I'd be looking at settling or refinancing the PCP and / or making a part payment against the mortgage. You could also make a good case for regular investing, if not already doing so.

There are loads of online calculators that will allow you to see how much you will pay if you follow the PCP and mortgages to the end of their term, compared to settling, part payment or refinancing.

[AllyM]

A 4 year old X3 with 80k miles on will likely be worth less than £16k. I’d tackle the mortgage, in the long run the saving will be greater.

[bmwmike]

+1 for mortgage

The point of pcp is so you dont need to care about the residual of the car isnt it, just hand it back and grab another new car at end of cycle.

Another option might be to keep the money in the bank for now unless you are sure your income is secure.

[cooper2000]

Thanks for the advise - I have always paid cash for cars and had a company car - Due to the heavy tax on company cars I decided to buy my own via PCP. I have been thinking of paying it off but feel that I will not be any better off really as the car will not be worth that much ( with the saving in interest rate would need to be about £13000 to have gained anything) therefore I would be better of paying off some of the mortgage. I am already paying a significant amount into my pension each month in view of trying to retire early. I have a 3% early repayment fee on the mortgage which is an issue and two years to go before this comes to an end. Not sure if people would say gamble on stock and shares ISA for two years and see if it works out better.

[cooper2000]

Thanks for the advise - I have always paid cash for cars and had a company car - Due to the heavy tax on company cars I decided to buy my own via PCP. I have been thinking of paying it off but feel that I will not be any better off really as the car will not be worth that much ( with the saving in interest rate would need to be about £13000 to have gained anything) therefore I would be better of paying off some of the mortgage. I am already paying a significant amount into my pension each month in view of trying to retire early. I have a 3% early repayment fee on the mortgage which is an issue and two years to go before this comes to an end. Not sure if people would say gamble on stock and shares ISA for two years and see if it works out better.