What is the best way to buy a car?

Rainbow_Butterfly

I wasnt sure where to post this, so please someone move it if it would be better somewhere else.

I am BR, hubby isnt. He has a 5k loan, with 4 years left to run on it on which we are paying £129pm. He also has a credit card which is just about at its limit of 2.5k @ 17% (Ouch!)

I am due to get some money through for a personal injury claim in about a months time, the offer at the minute is £2100, we are hoping to push them upto about 2.5k.

I had earmarked this money to clear the credit card which I absolutely hate, but we are now in the position that we need to buy a car for hubby's work.

I have been looking on autotrader, and I think something along the lines of a V or W Scenic would do us to fit the family, dog, work stuff etc in. I would look at something older, but I want it to be fairly reliable as we will not be changing it for at least 5 years. Scenic's seem to be coming in at about £1600-£2000 for this age.

We have about £200 spare a month (thanks to me being BR and having my debts alliviated)

Im confused now about what would be the best thing to do;

A. Pay off the credit card with the inury money & hubby try to get a loan for the 2k (I presume though that this would be at a high interest rate, as we would only need it fairly short term and for a smallish amount)

B. Leave the credit card as it is and spend the injury money on a car, and then try to clear the credit card each month.

Rainbow_Butterfly

Forgot to say, hubbys job starts on the 21st Oct. xx

Burlesque_Babe

Pay the CC off with the injury money and try to get a 0% CC.

Rainbow_Butterfly

Burlesque_Babe wrote: »

Pay the CC off with the injury money and try to get a 0% CC.

And then buy the car with the new CC? xx

tyllwyd

If you are currently BR, will you be able to keep the money or do you have to delare it to the Trustee?

Rainbow_Butterfly

tyllwyd wrote: »

If you are currently BR, will you be able to keep the money or do you have to delare it to the Trustee?

All already sorted out with the OR, they have no interest in it as it is not loss of earnings money, its only for pain & suffering.

I have just had a look at 0% CC, they seem to offer longer on balance transfers than on purchases, so I suppose use the injury money for the car, transfer balance of CC to a 0% one, and then try to pay it off asap?

xx

mummytofour

Spend 1k on a car and put the rest on the card, for this I got a t reg mondao a few months back.The amount you owe will go down on the card and the repayments will be less. But carry on paying the amout you were. The card will be paid off in a just a few months.
Next use all the money you have been using to pay cc to save for a nice new car.