Settling a PCP agreement using credit card

Chapwee

Hi,

Our PCP deal on a car is coming to an end and I'd like to keep it (for a number of reasons). The balloon payment is within my range of affordability, but I'm wondering about the best way to keep the cost down. If I pay the balloon payment on a credit card with 0% on purchases, will it be treated as a 'purchase'? If so, I'd then spread the payments over the period of the 0%. Or if not, could I pay on one card then immediately balance transfer to another with a 0% on balance transfers and a 0% (or low %) fee for the transfer? Grateful for any ideas.

AnotherJoe

They may well not accept a credit card or if they do, will add a surcharge as it's I'll be treated as a cash advance, not a surcharge.

You could switch all your spending over to credit cards and put the money on them that way, indirectly, so it's the same effect as if you paid on a credit card, but that will take time obviously.

almillar

If I pay the balloon payment on a credit card with 0% on purchases

This is up to your Credit Card company - might be best to check with them for such a big thing, but I think most reasonable people would call part-payment for a car a 'purchase'.
As above, maybe you'll get, like, a 2.5% fee charged by the finance company. Might still be worth it though.

Mobeer

Maybe read the MSE article on credit cards and money transfers:
http://www.moneysavingexpert.com/loans/plastic-loans#turn