Paying off car finance with credit cards

[Eels]

I bought a car with a Black Horse personal loan last year, but my circumstances have changed and I want to sell the car.  My mum has kindly offered to pay off the settlement figure using her credit card, so that I don't have to take out another loan and can just repay her when I have sold the car.  However, the company will only accept debit cards or cheques.  Is there any way around this?

[Oneeyedvic]

Credit card cheque or a cash advance from credit card, though both are quite expensive.

If it helps - you have a loan agreeement with Black Horse not a Hire Purchase agreement - this means that you can sell the car without informing black horse. They are not allowed to register on HPI (Hire Purchase Interest register).

They obvioiusly don't want you to do this but there is nothing they can do about it.

 

Sell the car then pay off the loan

[Eels]

Mum did say she would get a cheque for her card and I'll pay her the extra.

The only reason I hadn't planned to sell the car outright was because the car would have outstanding finance associated with it ... I thought this was a no-go?  Although it's a loan it was through a car dealership and is associated with the vehicle?

Wish I'd bought a blimmin' pushbike!

[Loosehead]

When you sell the car you can tell the buyer there is finance associated with it and they can pay the loan for you and then you keep the change. All Lloyds loans have a sort code and account no, anyone can pay money into it.

The credit card route will cost an arm and a leg.

[Oneeyedvic]

Cars that have finance associated with it have to be a Hire Purchase agreement.

Without going too much in depth, Lloyds do not offer HP terms - only loans. This means that despite the fact that you had the loan for a car, it remains a loan. This means that you can do whatever you want with the car.

When people refer to finance outstanding on a car, they are referring to HPI whcih is where companies can register an interest if they have secured their agreement against the vehicle. This only applies to Hire Purchase agreements.

Sell the car - and then settle the loan (or you can keep paying monthly installments and use the money for something else).

[Eels]

Thanks for your help - think I'll put an ad in this week's paper!