Paypal - can i do this?

[E-one]

Hi everyone.

Firstly, sorry mods if this is in the wrong section - didn't think it really finance and thought it might get more views here.

Basically, im looking to buy a car, and infact have found one. However, i need to shift my car first before i have the cash.

Now, the seller is in no hurry to sell, so i plan to give him a deposit, and hope my car sells within a week or two. However, the market being what it is, it might take longer, and if the seller had others calling up with cash waiting....

So, im in the position where i want to buy the new car, garage it until the old one goes and then use the funds to pay off the new car (if you get what i mean)

Now, i've looked at methods of doing this - credit card to bank account is a no go, and i dont really want a loan (even for a short while) and anyway, the missus is adamant about no loan.

So, i have 8 months interest free credit left on my card. So, it would make sense to use that, because even if the old car dosen't sell for a month or two im only paying the miniumum payment (which will be about £30, as its only a couple of £K i need).

So im thinking about doing this. Using the CC to fund a personal payment to my Dads paypal account (free apart from the 3 odd percent CC fund charge). Dad then sends this back as a personal payment. I then withdraw the funds to my bank account. Both of us have verified premier accounts.

Now there is an element of risk with this, but tbh if the car dosent sell within 8 months then with two cars ill at least be able to make enough to pay it all off, and take a little hit. First time ive ever done anything like this (am debt free apart from the mortgage) and were not talking thousands here)

So? will this work?

Cheers all!

Matt

[audi321]

The only issue I can see is the first part.....getting the CC company to pay an amount to paypal. They normally only want to send the money to another CC company (i.e. a balance transfer).

I tried with Barclaycard to pay off my overdraft onto their 0%, but they wouldn't do it, they would only send it to another card to pay it off. However, the next week they sent me some cheques and I could write these out to anyone!! So I did, and paid off the overdraft!! MAD

The other option is to balance transfer onto another card with a zero balance (as long as it's not the same group of companies) and then ring the card company up which is now in credit and ask for a cheque back as you are now in credit.

[Keith Lard]

More direct method.

Go in to to your Paypal account and make a payment request to yourself (another email address). It should then give you the option to pay the request by credit card or using your Paypal account, just pay using CC. Pretty sure this method should work.

You will take the 3% hit from a paypal transfer though.

[LMC]

Are you sure that cash transactions are still 0% interest ? All my 0% cards have been on purchases and balance transfers only.

[E-one]

Hopefully it would go as a purchase - its just funding through the card as any paypal purchase.

Ill look into that KL, thanks a lot.

[bogwoppit]

Most credit card companies these days are wise to Paypal. If you use the card directly against a genuine purchase, it will go through as such. But if it is a transfer into your Paypal account it is typically treated as a cash advance, as if the CC company transferred to your current account. Cash advances often have similar terms to balance transfers (usually no interest free period and a high interest rate). As to how a transfer to your Dad's Paypal account will work, I believe it depends on how Paypal report the transaction. I'm not sure what 'personal payments' count as but if it isn't a direct payment to a retailer I would be doubtful it will be classed as a purchase.

Do some reading of the different classes of Paypal transaction and check your credit card terms. Both of mine had revisions a couple of years ago to cover Paypal and their brethren.

[Barkychoc]

Couldn't you get the seller to raise you an invoice for the car in paypal?