Credit card for new car!

Blondermoo

I want to get a credit card (my first one) as i have an existing loan with Lloyds TSB and have another 18 months left of paying nearly £200 a month :embarasse. Soooooo i was chatting one day with my friend and she suggested looking into getting a 0% intrest credit card seeing what the minimum repayments are and paying my loan off in full, plus i wanted to get a new car (not brand spanking) prob about £5000 so I have been thinking about it and looking on the net and what Ive seen is the theres a balance transfer intrest and an interest on new purchases, the best one i have seen is a mastercard which was 0% interest on transfers for 10months and 0% interest on new purchases for 10 months, is that good??? Also what i wanted to do which is the main point for this thread is after the 10 months of 0% can i transfer over the another credit card and pay off the existing credit card with the new one and have a fresh x amount of months of 0% again.....is this possible......:j

Thanks in advance

NickX

You can keep moving balances to 0% deals provided that you are successfull in your applications. There is usually a fee of around 3% to transfer a balance across. This is known as "rate tarting".

With regard to the car purchase, some dealer do not accept Credit Cards whilst others add a surcharge for paying on the Credit Card.

If you do some research on "Super Balance Transfer" cards such as Egg and those run by MBNA (e.g. the Virgin range) you can use these cards to transfer funds directly to your bank account from where you can settle your loan and\or buy your car.

Good Luck and Best Wishes for 2009.

jenhugs

Our car loan is all on 0% credit cards. It makes more sense to do it this way if you can. The car company did charge a small fee, and of course the balance transfer fee but well worth it. In just a year we have saved over £1000 in interest by doing it this way. We are hoping at the end of the 0% terms to move them over onto new interest fee cards, of course depending on the market.

davetrousers

Blondermoo wrote:

...i have an existing loan with Lloyds TSB and have another 18 months left of paying nearly £200 a month

You're currently £3,600 in debt then?

Not sure I'd recommend getting a further £5,000 in debt because you want a new car

Blondermoo

Thanks Davetrousers for your concern but obviously i will be selling my current car which will fetch around £2,500.

Blondermoo

When you say 'we' does that mean you have had seperate cards or you have had more than one in your name only and spread the cost over different cards, is that possible and is it cheaper that way?

Thanks

YorkshireBoy

Blondermoo wrote: »

Thanks Davetrousers for your concern but obviously i will be selling my current car which will fetch around £2,500.

Negative equity is negative equity, whether or not it's at 0%.

And you currently have (at least) £1,100 of it, ie you currently owe around 50% more than the car is worth. Slippery slope?

Which, I think, is the point the previous poster was making?

digitalray

I bought a brand new motorbike on a credit card last may. The total cost including a few accessories etc came to £6500. I worked out the costs if I took out a loan over a 4 year period. On the best loan I would be paying about £900 in interest over this period. I worked out that if I could get a new balance transfer card every 12 months, pay the 3% fee each time, I could save about £600 in interest costs. I will still pay the bike off in 4 years though

Obviously this is not for everyone. You will have to be very disciplined. DO NOT use the card for anything else. I have cut my card in half and left it in the drawer at home. Put a note in a diary or on a calendar 6 weeks before your 0% deal is due to run out: that should be enought time for you to find out a new deal, apply for the card and get in in your hands. DO NOT just pay the mimimum payments. I worked out my figures on paying £150 per month. Halifax take the mimimum off me, which is about £55 at the moment. I then make an online payment via their website taking my monthly payment upto £150.

To some people this all seems like a lot of hard work. My friends reckon that I am mad doing it this way. A little bit of effort every 12 months or so can pay dividends though.

Hope that this post helps (my first one on here).

Ray

Kavanne

Blondermoo wrote: »

Thanks Davetrousers for your concern but obviously i will be selling my current car which will fetch around £2,500.

I think his point was, do you NEED a new car?