Options on paying PCP balloon payment

Eml2021

Hi all, my PCP finance is due to run out in April 23. I’m looking at different options of paying the balloon payment that’s due at the end of my contract. I’ve been looking at 0% balance transfer cards or purchase cards but aren’t sure if my finance company will accept that as form of payment. Has anyone used a transfer card as payment before? Or is anyone able to explain how the different forms of payment work please? 

TadleyBaggie

The last time I paid off car finance balance (RCI, so Nissan and Renault) they would only take a bank transfer (i.e. faster payment), not even a debit card. You could get a Money Transfer to get cash in your bank account and take it from there.

How much is the balloon payment?

DailyHail

Balance transfer cards won’t work.

If the loan company accepts a credit card for payment (unlikely but check with them prior), a purchase card would work.

Otherwise a Money Transfer card is your best bet - but the majority of these have lowish limits.

grumbler

DailyHail said:

Balance transfer cards won’t work.

If the loan company accepts a credit card for payment (unlikely but check with them prior), a purchase card would work.

Well, IF they accept CC payments, you can pay with some CC and then transfer the balance.

If they don't accept CCs, then in the worst case scenario you can withdraw cash from a CC (this will cost about 3%), then transfer the balance.

Eml2021

TadleyBaggie said:

The last time I paid off car finance balance (RCI, so Nissan and Renault) they would only take a bank transfer (i.e. faster payment), not even a debit card. You could get a Money Transfer to get cash in your bank account and take it from there.

How much is the balloon payment?

The balloon payment is 6k, I need to find out if they accept credit cards for a one off payment (I’ve read somewhere that they do). So if this was the case I could get a 0% purchase card and then after the 12 months interest free would I get a balance transfer? 

grumbler

Eml2021 said:

TadleyBaggie said:

The last time I paid off car finance balance (RCI, so Nissan and Renault) they would only take a bank transfer (i.e. faster payment), not even a debit card. You could get a Money Transfer to get cash in your bank account and take it from there.

How much is the balloon payment?

The balloon payment is 6k, I need to find out if they accept credit cards for a one off payment (I’ve read somewhere that they do). So if this was the case I could get a 0% purchase card and then after the 12 months interest free would I get a balance transfer? 

Yes, but it can be longer than 12 months and it's a mistake to assume that when 0% expire you'll be able to get a 0% balance transfer card with sufficient credit limit. The more cards you have the more difficult it is to get new ones, especially with promotional offers and big limits.

Ebe_Scrooge

If the OP were able to use an ordinary "purchase" card, wouldn't that be treated as a cash advance anyway?  If so, they'd be hit with fees and interest.  Not sure whether the one-off fee usually associated with a money-transfer card (assuming they can get one) would be cheaper overall?

DullGreyGuy

DailyHail said:

If the loan company accepts a credit card for payment (unlikely but check with them prior), a purchase card would work.

Paying a loan is almost certainly going to be considered a cash like transaction @dailyhail and so it "would work" in the sense it'd be paid but it wouldnt be the 0% the OP is looking for but an upfront fee followed by high interest as a cash advance.

[Deleted User]

Your options are limited by what the firm does - if they will take a £6k payment on card (unlikely due to the fees) then you could do that but as above it'll likely be treated as cash and thus incur fees and interest. If not, you could use a MT offer for some of it if you got a sufficiently high limit. It's a bit of a gamble though, it would be safer to use whatever funds you set aside to pay off the balloon back in 2019 and take ownership that way, perhaps use a 0% purchase card for a bit to rebuild the savings

born_again

Eml2021 said:

TadleyBaggie said:

The last time I paid off car finance balance (RCI, so Nissan and Renault) they would only take a bank transfer (i.e. faster payment), not even a debit card. You could get a Money Transfer to get cash in your bank account and take it from there.

How much is the balloon payment?

The balloon payment is 6k, I need to find out if they accept credit cards for a one off payment (I’ve read somewhere that they do). So if this was the case I could get a 0% purchase card and then after the 12 months interest free would I get a balance transfer? 

So your starting point is to call them & find out. No one can 2nd guess how different companies will take payments. Especially when no one knows which company you are talking about.
But as a rule of thumb. Credit to pay credit is often refused.

dcfc67

My company would only accept a payment from a debit card.
credit card is treated as a cash advance.

Why would a finance company accept a credit card for say a payment of 10K for instance and they pay a 2-3% handling fee to accept your payment