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Paying off car balloon payment

in Loans
9 replies 555 views
Bpaul20Bpaul20 Forumite
5 Posts
First Post
I have a car with SEAT on PCP due to end in December with a ballon payment of £4000, I’m also pregnant with my second child so looking for a bigger car. I can’t afford to do a PCP on a larger new car, so want to look into a older car and established that it would be cheaper to do so with loan or credit card. 
My car is being valued at £6500 on autotrader/webuyanycar and therefore I would make sense for me to pay off the balloon payment and sell the car to gain the £2500 profit to put towards a bigger car, rather than just hand the car back. 
However my plan to do so with a 0% purchase card has just been ruined with realising they don’t accept credit card payments to pay off the balloon payment! 
Looked in bank transfer credit cards which would work to pay it off, but could not then be used to purchase another car? 
And generally have a short 0% period? would it be possible to take out a transfer credit card, pay off the loan, then sell the car pay off the credit card, then take out a 0% purchase card with a longer period to purchase a new car? Or would I be rejected for the second card?
is this is a ridiculous way to do it and there is a better solution? 
Talk to me in lay as I’ve never had a credit card before 


  • DrEskimoDrEskimo Forumite
    1.8K Posts
    1,000 Posts Third Anniversary Name Dropper
    If you can get a garage or local dealer to offer you £6500 you could just sell it directly to them, they will settle the outstanding finance and then write you a cheque for £2,500.

    It all depends on how accurate the autotrader valuation was, and whether that was based on a private sale.

    Try a lot of different dealers and garages and see how close to that private sale price you can get. Even if it's just £500 short it may be worth it for the ease.
  • Bpaul20Bpaul20 Forumite
    5 Posts
    First Post
    Ah great idea I didn’t know you could do this. 
    Yeah this was the autotrader part exchange estimate, the private sale estimate was actually £7000. 
    Thank you! 
  • MinuteNoodlesMinuteNoodles Forumite
    1.2K Posts
    1,000 Posts Name Dropper
    Came here to post the same as DrEskimo. WBAC will most certainly do that.
  • Bpaul20Bpaul20 Forumite
    5 Posts
    First Post
    Oh awesome thank you! 
  • macmanmacman Forumite
    48.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Bear in mind that the WBAC online valuation will be higher than what you are eventually offered once they have inspected it and found numerous 'issues' with it.
    No free lunch, and no free laptop ;)
  • HHarryHHarry Forumite
    693 Posts
    Eighth Anniversary 500 Posts
    And you can do the same with a private Buyer.  I bought a car for my daughter last weekend - paid off the finance with my debit card and gave the Seller the rest in cash.
     There may be less private  buyers willing to do that, but you should get more than the ‘trade’ price.
  • PaulW922PaulW922 Forumite
    1K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    As an aside, don't just got to I recently sold my car to Arnold Clark and got £700 more than WBAC offered me. There is a comparison site called Motorway that works a bit like Go Compare. You may find that not all of the quotes you get actually work out to hard offers but I found out about lots of car buying firms I had never even heard of. 
  • Bpaul20Bpaul20 Forumite
    5 Posts
    First Post
    Thanks guys. Can I ask another question for anyone that might know? 
    I think I’ve found the next car I’d like to buy and plan on doing it on a loan (The interest free credit cards are longer enough for me). 
    The dealership have offered to sorted out the PCP and put the remainder towards the next car like you guys suggested. 
    My worry is; am I less likely to be approved a loan, if when I apply for it the PCP is not completed. 
    Would it be better to pay off the PCP, and wait before I apply for the loan? 
  • MinuteNoodlesMinuteNoodles Forumite
    1.2K Posts
    1,000 Posts Name Dropper
    It would be better to pay off the PCP and wait however it may take a few weeks before your credit record is updated to show the loan as paid.
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