Toyota PCP - can I pay off with credit card?

[Simonnnn 2]

Can I settle the PCP finance agreement early using a credit card? Car is on order, but I don't have any terms & conditions for the finance yet - dealer says this will only come once they have a chassis number.

I am wondering if I can take advantage of the £1k PCP "deposit contribution", then move the loan to an interest free credit card for a couple of years. I suspect I may not be allowed to pay off with a credit card, or there will be a large fee for doing so.

[Mark-in-Stoke 488]

Get your credit card to pay cash into your account, then pay it of that way, Barclay card are doing this.

[long-gone 152]

I don't see why not. The finance company just want money - they don't care from whence it came.

If you're uncertain, a quick phone call should answer your question.

Nb. No need to go into details - just ask if it's okay to pay by credit card - mentioning anything else may muddy the waters.

[Simonnnn 2]

Thanks Mark-in-Stoke.

Just had a look at the Barclaycard website, they're charging a fee for this "money transfer". Can't find details on their website of how much this is, but MoneySavingExpert's info on Barclaycard suggests it ends up at 2.45%.

Better than 4.9% APR for 2 years, but I'd like to know if it's possible to pay off the finance directly with a card and avoid the fees altogether.

Edited March 5, 2016 by Simonnnn
add words so post makes some sense

[long-gone 152]

10 minutes ago, Mark-in-Stoke said:

Get your credit card to pay cash into your account, then pay it of that way, Barclay card are doing this.

This may incur a charge and/or instant interest in some cases though, no?

[Mark-in-Stoke 488]

No interest but a 2.9% handling fee, which is the same for interest free balance transfers. 

[Mark-in-Stoke 488]

15 minutes ago, Simonnnn said:

Thanks Mark-in-Stoke.

Just had a look at the Barclaycard website, they're charging a fee for this "money transfer". Can't find details of how much this is, but MoneySavingExpert's info on Barclaycard ends up at 2.45%.

Better than 4.9% APR for 2 years, but I'd like to know if it's possible to pay off the finance directly with a card and avoid the fees altogether.

You'll most probably find your credit card will say interest free but will charge you a small fee for the service, they have to make some money

[Simonnnn 2]

Following on from Mark's suggestion - Virgin offer a 1.69% fee for transferring to current accounts;

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs#virgin32

Same page has MBNA offering 0% fee, but 7.4% APR... my credit history is good, but not sure it's going to be good enough to wrangle two new cards for;

0% balance transfer card -> MBNA no fee -> current account -> PCP

I might have to bite the bullet and brave a phone call to the dealer... "Hi, I was just wondering, for no reason at all, if I can pay off the PCP with a credit card?"

[Norville Rogers 0]

You should have the T&Cs before you sign and it's probably the sort of question you should ask (not us really) before you sign. Is it your first lease purchase?

[Keethos 842]

I have a feeling that you can't pay it off within a certain amount of months or something without incurring a charge of some sort, something along the lines of them wanting you to continue to pay it off bit by bit so they can charge interest, paying early would mean less money for them....but I could be wrong.

[LarmiqGt 49]

I know that with Mercedes. You get more discount going pcp but you have to wait three months.  (three instalments)  then you can pay the total off theoretically keeping almost all the discount. What my auntie did. But to so that she had to put 90 percent down and take the rest on pcp. 

[Deacon 1357]

Yesh I think 3 months is fairly standard with most of them - my gf's mom's fiat is 3 months for instance.

[Simonnnn 2]

Does anyone have a copy of the PCP T&Cs?

I'm expecting at least a month of lock-in to the agreement, from what I have read of others experience with Toyota PCP. As LarmiqGt says, I'd still keep most of the discount doing this.

Moving the loan to a 0% credit card means I can effectively offset that amount against my mortgage - it's not as big a benefit as it used to be, with the interest rates being so low now, but given the amount of money involved it's worth some effort.