Loan and/or Credit card for New Car?

Spanners16

I have stupidly fallen in love with a car that I shouldn't have even looked at and it is around £4k, I have about half of that already, so decided to have a look at my options at loans, then thought it might be better to get a credit card with 0% interest for a certain time. I only need to borrow around £2k so interest on a small loan will be high. So i thought it would be best to get a credit card.

However, I am not 21 nor older (therefore im limited to which company I can go with), and I only work part time (at the moment, hours should be going up in a month or two). So this means, I cannot afford to pay back too much each month.

Also, I'm new to credit card and loans, so even if i get accepted, the whole thing baffles me. I'm only just learning about credit cards and how they work as well as contemplating which one to take out. If I should at all in the first place.

Plus, if I were to get a credit card out, and put 2k on it, I don't really want to pay back 200 each month and also... don't want to make the debt higher by leaving money on it after the 0% period is over with. Therefore I am unsure if it's best to be cheeky and put it on another new card with another 0% interest free period or to get a small loan for the amount left to pay?

Or is best to just get out a loan? My only concern is paying it back each month, therefore the loan will probably have to be stretched out for over a year.

Also, I have a few lump some of money coming in, (selling old car, which will only be about £500 at most and a few owes from people) therefore I can use this money to pay off a huge some off the credit card?

Any idea what my best option is? I'm lost in the sea of loans and credit cards.

babyharry5

Hi there
I'll be honest a few things that you have said concern me here -
a) considering buying a car that you cant afford
b) have you checked an insurance quote yet?
c) I only work part time
d) "i'm new to credit cards/loans - the whole thing baffles me"
e) "my concern is paying it back each month"
My advice would be to look at car that you can afford.
taking out credit cards/loans to finance a car is always a daft idea especially when you have sufficient funds saved already to buy a decent car!
why not save these lump sums that you have got that will be coming in and then look to upgrade in a years time when you will a) have the cash and b) an extra 1 years no claims bonus

If you start taking out a few credit cards here and there to finance this then you are much more likely to still have this debt ( or even more if they can give you a higher limit) ina years time

be sensible - you will reap the benefit in years to come!!
TRUST ME ON THIS!!

Moggles_2

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. You probably need to be more concerned about actually getting a credit card, rather than trying to find a 0% deal.

The credit card companies launch these 0% promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants.

bigbloke45

Don't Do It!

clio

My local garage has just put a 1 series bmw on the forecourt it,s grey and lovely price is 10,000 me keeps
thinking ooohhh i,d love that- drove past it before, now i,m thinking......................... can i afford it!!
i have a couple of 0% cards and cash and a car.. no searches in 3 months tempting innit lol

Bonniebanks

Dont but it on a credit card.The car will be rust and you,ll still be paying for it. I've had clients want to capital raise on their mortgage to buy a car.Are you mental? your repayments will be over 25 years you,ll probably have the car for 3

clio

if you do it properly a credit card is actually the best wat to buy it..
take virgin's 0% for 15 months. cost of the car say £5,000 divide that
by 14 equal £358 a month so pay off at that and you get a car for cost price.
don.t worry i know the cost of the car would rocket once 0% runs out but thats
just an example. if your are structured it will work fine. i say 14 months so as you
leave space to get it all sorted at the at the end before 0% expires.

YorkshireBoy

clio wrote: »

...you get a car for cost price.

...plus a 2.98% premium if you can't get the BT fee waived.

clio

lol aye true so make sure the salesman knocks some money of the car to cover the cost of the BT even if you get it waived still get him to drop the price even by 200 pounds it,ll be worth it.

jdavtz

How much do you currently save (=can you afford to pay back) each month?

With that info we can probably advise slightly better.

clio

And here is another way, find out if garage takes credit cards, find out what garage surcharge is on cards usually
1.5/ 2.5 % find a credit card with a long 0% purchase rate. halifax card etc. tell salesman if you take the car and
he does not knock much off you want surcharge waived, haggle if he says no. you may get it waived or at least halfed so now there is no BT fee just at worst a surcharge at a lesser rate than bt fee.. if you do your sums/research it will work out in your favour, jump in and you,ll pay the price. research/ask/haggle and you,ll get a good deal. BT way is better coz cash is king so tell him that. now i am available for a small fee to be your voice email me on [EMAIL="iamavailable@aprice.com"]iamavailable@aprice.com[/EMAIL] lol....