Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

If you buy a car on finance can you pay the balloon with a credit card?

(11 Posts)
ditavonteesed Sun 27-Oct-13 18:22:04

so at the end of the car term get an interest free purchase credit card and pay the balloon payment on that. Is that a really bad idea? I want a car but have no available cash, dh and I have always beenm a bit afraid of credit (sensibly so) but last year we made a big purchase on cc and have had no problems paying it back in the time frame. Or is it just too risky, if there is no way of paying the balloon payment you are then either tied in for a further 3 years or car less.

PrincessFlirtyPants Sun 27-Oct-13 18:36:14

The finance company won't accept the payment via credit card so that's not an option, I'm afraid.

Onesleeptillwembley Sun 27-Oct-13 18:36:31

Pretty sure you can't pay credit with credit but I'm happy to be told I'm wrong.

ditavonteesed Sun 27-Oct-13 18:39:43

cool thanks thats what I needed to know, so I either need to save enough for the payment or take out a loan for the whole amount.

PrincessFlirtyPants Sun 27-Oct-13 18:52:35

Yep, it's the best bet. The car finance company normally give you an option to extend the loan at the end of the term subject to the usual credit checks.

Thistledew Sun 27-Oct-13 18:59:02

Apologies if I misunderstand what you mean by "balloon" but DH and I recently bought a car on an 0% finance deal and paid the deposit on our joint credit card (we clear the balance every month but the dealership doesn't know that). The monthly payments will have to come from a debit card though.

ditavonteesed Sun 27-Oct-13 19:14:30

I mean the payment at the end of the 3 years, for the car I am looking at it will be about 3k.

Twinklestarstwinklestars Sun 27-Oct-13 19:16:20

Our car finance is just monthly payments no large end payment maybe find one without the big payment? Ours was from a ford dealership too.

Cindy34 Sun 27-Oct-13 20:55:57

Have never brought a car with a balloon payment at the end of the finance deal. I don't see the point in it, I like things to be straight forward, so a fixed payment every month until debt is repaid. Are those types of loan not available now?

Also hire purchase agreements also often have a fixed annual mileage limit, which is not good for me. So look at what mileage you do / are likely to do and see what finance is available. Shop around for the loan, does not need to be from the car dealership. I remember getting one from Lombard (alas now longer trading, at least to public) and then paying for the car at the dealers via debit card. Negotiated a price based on paying it in lump sum via the cheapest payment method for the garage.

PrincessFlirtyPants Mon 28-Oct-13 18:48:38

Yes, they are Cindy, however, a lot of people cannot afford the monthly commitment that this option costs.

CarolBornAMan Mon 28-Oct-13 19:11:18

I bought a car via Ford finance and paid the balloon payment onto a 0% credit card just 6 months ago.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now