Is there any way this manoeuvre could bite me in the arse?

[Carrotsurprise]

I'm asking this not because I have specific concerns but because the financial system has so many unexpected ways it can trip you up that I'm not aware of, I'm worried to do this without checking!
We need a new boiler, we don't have the money. My parents have generously offered to pay for it.
We have a bank loan that we took out to pay for the car. It has about 3 years left and the outstanding amount is similar to the amount the boiler will cost.
I'm thinking it might be worthwhile to use my parents' money to pay off the bank loan, and then use the 0% interest loan for 3 years that British Gas offers when you get a new boiler from them. I imagine the monthly payments will be less because we'll be paying off a 0% interest loan instead of a loan with interest. It seems like cheating though, is there any way this could cause me some kind of problem down the line?
My parents won't care if I use the money this way, I mean financially/legally.

Is there a penalty for paying it off early?

Is the BG boiler (& fitting) more expensive than using an independent contractor? So, effectively, you are paying more.

(I have had an awful experience with BG and won't touch them with a bargepole again!).

I've not been impressed by BG. I would definitely check what brand of boiler you would get etc. They're not all created equally.

58 days interest

@Chewbecca @SuperLoudPoppingAction could you tell me about your bad experience with BG? I'm getting a quote from them and my usual plumber as well so I can compare.

The missing piece of information, that you haven’t told us, is the interest rate on the car loan.

Presuming that the three year free loan is fully repaid at the end of three years- what is the difference in the monthly repayment of the car loan now, bs the boiler loan?

it’s not cheating, no. Are your parents happy with the arrangement?

Mine was nothing to do with a new boiler installation tbh, it was a service issue. They switched it off saying it was condemned until a particular part was replaced. They ordered the part and quoted for it to be mended (2 man job to fit this part). After two months the part hadn't arrived. One man returned and quickly said it was ok without the part, switched it back on and still charged the amount because the quote was for them getting the boiler going again which they did. So 2 months with no boiler, a big bill and no work done on the boiler. Very shit service and as a result I won't ever use them again.

Much more relevant to you though is my understanding is that they are not good value for new installations, high labour and product costs.

7.8% APR. This is just an idea I had this morning so I don't know yet what the monthly payments on a BG loan would be, I don't even have the quote for the boiler yet I'm just assuming it'll be similar to the quick quote I got online but they're going to visit. I'm just wondering in principle whether this would have any implications for anything like my credit score.
Also haven't mentioned it to my parents because again it's an idea I've just had.

Got it, thanks

British Gas are the most expensive for boilers, IMO, quoted me double what a local tradesmen did it for.

I would get a few quotes and recommendations as you could be paying it off for a very long time.

Experience with BG was offering a crap boiler for a huge price basically, compared to a local plumber.

That's exactly what I did. Same scenario. Parents gave me the money for boiler and I had an outstanding loan. Cleared the loan and took 0% finance for the boiler. Then threw everything at the finance and cleared it quickly in part thanks to the 0%.

I would pay off the loan if you can get the boiler interest free. You are still getting the boiler they have given you the money for, it just makes more financial sense this way

Is there any way you might qualify for a free boiler, ie on benefits or disabled child or whatever?

Check out the criteria. My friend did it. It’s real not a scam.

Go look on a gov or gov agency website though and see if it’s still A Thing.