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Using Credit Card on Deferred Vehicle Payment
odowdchr
Posts: 800 Forumite
in Credit cards
My OH has had a car for 3 years with one of these deferred payment deals, where you have an outstanding balance at the end of the term to either purchase the car outright or you give back/trade the vehicle in.
She wants to get out of this deal by paying off the balance and keeping the car, putting her in a stronger position for bargaining for a replacement elsewhere.
If she puts this balance onto a 0% credit card for 9 months, would it be treated as a purchase?
We're just checking that because it's theoretically paying off a loan to the manufacturer's finance company, the CC company won't treat it as a "balance transfer" or something?
TIA.
She wants to get out of this deal by paying off the balance and keeping the car, putting her in a stronger position for bargaining for a replacement elsewhere.
If she puts this balance onto a 0% credit card for 9 months, would it be treated as a purchase?
We're just checking that because it's theoretically paying off a loan to the manufacturer's finance company, the CC company won't treat it as a "balance transfer" or something?
TIA.
0
Comments
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There's no "technically". It IS a balance transfer as it IS the repayment of the outstanding proportion of a debt.0
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Have you thought that they may not be able to accept a credit card payment to pay off the loan. You may have to do a cash advance or a balance transfer either way you may have to pay a fee of around 2-3%.0
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Cheers. Yes, it's not worth putting it on a card then.0
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I've always wondered about this. I used my C/C once to pay off a Next Directory Account which is not a C/C but is still works by giving you Credit on your account. Now I'm not sure if this was counted as a BT or a Purchase. My card is 0% for both so it does not really matter to me but I was never charged a % of the balance I paid which makes me think that it was counted as a purchase?
Regards,
Alyn.0 -
I disagree, I think it would be counted as a purchase.0
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I guess i'll try the credit card company then, see what they say.
Thanks.0 -
It's not the credit card company you need to contact but the loan one,and ask how exactly they will want funds to pay the debt off.0
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Tried my credit card company...it will count as a purchase and not a transfer of existing debt., got that in writing.
Toyota's finance company will accept credit card payment, so all's well.
Thanks all.0
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