Using a 0% purchases card to pay off vehicle loan

vd91

I'm pretty terrible with this stuff so please bear with me.

I've recently purchased a vehicle using HP, and got a decent rate. On further research I realise I should probably have got a 0% credit card and it would have been cheaper.

My HP agreement allows me to pay off the full balance for no charge, if I have the money.

Am I right in thinking that (assuming I am accepted) a 0% purchase credit card - such as the Sainsburys Nectar one with 29 months - I can pay off the HP on the credit card and set up a direct debit from my bank to the credit card to pay say £100 a month for 25 months (which would clear the remaining balance of the HP) - that I would save money in the long term?

Thanks!

Ebe_Scrooge

The majority of 0% cards are for either purchases, or for balance transfers ( transferring a balance from a higher-interest card to a 0% interest card ). For the situation you describe, you'd be wanting a "cash-transfer" card - one that deposits money into your bank account, then you pay off the card at an advantageous rate.

These so-called "super balance transfer" cards are generally only offered to those with a good credit rating, and you need to do the sums to see if the balance transfer fee will offset the interest you'd otherwise be paying. But yes, they can be a good idea if used wisely.

debtfreehorizon

Ebe_Scrooge wrote: »

The majority of 0% cards are for either purchases, or for balance transfers ( transferring a balance from a higher-interest card to a 0% interest card ). For the situation you describe, you'd be wanting a "cash-transfer" card - one that deposits money into your bank account, then you pay off the card at an advantageous rate.

These so-called "super balance transfer" cards are generally only offered to those with a good credit rating, and you need to do the sums to see if the balance transfer fee will offset the interest you'd otherwise be paying. But yes, they can be a good idea if used wisely.

could OP not just pay the HP off on the card as a purchase (if of course the HP firm permits) This would remove the need for a money transfer which usually involves a 3-5% fee

jonesMUFCforever

debtfreehorizon wrote: »

could OP not just pay the HP off on the card as a purchase (if of course the HP firm permits) This would remove the need for a money transfer which usually involves a 3-5% fee

If they do allow this, almost certainly a fee will be charged.