Paying ‘ballon’ payment on pcp car with 0 pc cred card?

GoldenOldy

Good evening

I am to pay off the final payment for my car soon
I wondered if it is advisable/sensible or even possible to use a 0 per cent credit card for such a thing?
The pcp finance is through Santander, and the card i am thinking of getting is a marks and  spencer card ad mention on Martin Lewises newsletter.

Thankiy

Ayr_Rage

It is not usually possible to pay off a credit agreement with a credit card.

Ask the finance company whether they will accept it.

eskbanker

And you'd also need to ascertain (a) whether you'd actually be eligible for the card you like the sound of, and (b) if you did get one, whether the credit limit would be anywhere near the payment value.

retiredbanker1

It also needs to be a Money Transfer Card

GoldenOldy

Thankyou all. I see, not quite the ‘cunning plan’ I thought I had stumbled upon then😬
I appreciate your knowledge on this matter.

GoldenOldy

Are there any other clever ideas i am missing at all, other than just paying off the pcp end payment?

TadleyBaggie

Handing the car back?

prowla

You can do your other purchases with an interest-free on purchases credit card.

BridgetTheCat

I divided the balloon payment by the term of the loan (48 months in my case) and put that amount into a regular saver each month. But you have to start doing that at the beginning, not the end of the process. 

MyRealNameToo

GoldenOldy said:

Good evening

I am to pay off the final payment for my car soon
I wondered if it is advisable/sensible or even possible to use a 0 per cent credit card for such a thing?
The pcp finance is through Santander, and the card i am thinking of getting is a marks and  spencer card ad mention on Martin Lewises newsletter.

Thankiy

1) Not all finance companies accept credit cards

2) Many credit cards will consider a payment to another lender as a cash advance not a purchase so incurs fees and isnt part of any 0% offer


The solution is a money transfer card rather than a purchase card. Downside is there tend to be some fees for doing the MT but you do then get the 0% interest after that. 

Presumably you have actually checked the value of the vehicle to ensure its worth while paying the balloon or at least accept you are paying too much for the car? On my last PCP the balloon was massively more than what the vehicle was worth and whilst I loved the car couldn't bring myself to pay that much more than it was worth. In principle could have gone to the auction and tried to buy it there but had moved on by that point. 

Nasqueron

GoldenOldy said:

Are there any other clever ideas i am missing at all, other than just paying off the pcp end payment?

Apply for a 0% Money Transfer card and if you get it, use the maximum you can into your bank and then pay the remaining balance from your savings, then pay off the MT card while refilling the savings. Do note that typically you tend to only get 12 months with these.

Alternatively, a Balance Transfer card and put all your spend on credit card normally then BT the balance off and pay off over the transfer period which tends to be longer than MT cards (12-33 months is common)