Pay car finance with 0% purchases card

matttye

Hi

I have a HSBC credit card with a 0% 24 month promotional interest rate on purchases.

I have a car finance agreement where the lender accepts credit card payments.

If I make a lump sum payment using the credit card will this be classed as a 'purchase' thus shifting my 9+% debt to 0% debt? HSBC says it will but it took some explaining to get the call handler to understand what I was asking so I don't 100% trust the information I've been given.

Has anyone done this before?

Thanks

Dobbibill

It depends how the finance company process the transaction. Some process it as a cash amount and if that is not part of your promo offer or exceeds your cash limit then it will cause hassle for you.
Motonovo process it like this.

matttye

On a Halifax credit card it showed up as an 'online/phone/mail order purchase' - its too early to tell if I've been charged interest on that which is also a 0% purchases card.

I'm just being cautious as planning to make a large payment.

Thanks

Craig1981

i have read on previous posts about tesco CC and finance payments, like car insurance purchases, whereby they are showing up as cash, as it is finance you are buying not goods...

T&Cs have changed in April 2018, and any payment towards a financial institution is considered cash transaction... their T&Cs include that transactions towards borrowing (EG Loan and Mortgages) are classed as cash.

you may want to get something in writing to say this is not a cash transaction

18cc

Are you allowed to make a small payment first eg £100 and see how it is processed

matttye

Yeah I think that's what I'll do, thanks!