Best way to purchase car via credit card

vipergrm

Hi guys,

What is the best payment method to pay for a car via credit card? I have applied for the Tesco 12 months 0% on purchases card but how do I actually make the payment to the private seller? Do I use check? Can I do a balance transfer? I'm just a bit confused on how to do it. Your help is greatly appreciated! :beer:

YorkshireBoy

Exactly the same question asked just the other day...

http://forums.moneysavingexpert.com/showthread.html?t=1803449

td_007

What is the best payment method to pay for a car via credit card? I have applied for the Tesco 12 months 0% on purchases card but how do I actually make the payment to the private seller? [/QUOTE]

With this particular card you are at an advantage only if the private seller accepts card payment.

vipergrm wrote: »

Do I use check?

Using a credit card cheque will be considered as cash withdrawal attracting the applicable interest rate and will not be considered under the 0% rate.

vipergrm wrote: »

Can I do a balance transfer?

No.

vipergrm

Guys, thank you for the quick reply. Blimey that is a bummer. I don't really have the cash right now sadly. I do have a Virgin card which allows me to do a balance transfer but they are charging a 2.98% fee which is around £150 in interest. I should have the money to pay this off well within 12 months so is the best solution to take out a £5k loan and pay it back early? Which type of loan would I get which would allow me to pay back early without heavy fees? Sorry guys, but I'm a total amateur with this kind of stuff! Appreciate your help again. Cheers

YorkshireBoy

Is your Virgin card empty? And is the limit sufficient for your needs?

vipergrm

YorkshireBoy wrote: »

Is your Virgin card empty? And is the limit sufficient for your needs?

The Virgin card is not empty. I have about £1,000 on the card and the limit is £6,200. I only need around £4,500 so there's definitely enough on the card if I need it. The trouble is, how do I use the card without paying the large fees???

td_007

vipergrm wrote: »

The Virgin card is not empty. I have about £1,000 on the card and the limit is £6,200. I only need around £4,500 so there's definitely enough on the card if I need it. The trouble is, how do I use the card without paying the large fees???

How long have you had your virgin card? It is possible to transfer money from the Virgin Card (via the cheques) to your bank a/c or use the cheque for payment only in the first 60 days of opening your card a/c (check) to take advantage of the 0% BT rate.

Unfortunately you will not be able to avoid the transfer charges, but it will get added to your card balance. The good thing is that you pay £25 every month (as opposed to a percentage of balance) as minimum repayment during the 0% rate period without incurring any interest.

Is the amount on your virgin card from purchases or BT? If it is purchases then there are additional steps you need to take to avoid interest!

moneysavingmarrow

If he/she has one that needs paying off,or will accept overpayment/loading, maybe you could transfer a balance to the vendors credit card, or even direct to his/hers bank account with a Virgin, mbna card?

vipergrm

Thanks guys. My card is more then 60 days now unfortunately so it could cost me a lot to do it that way. Now, if I could somehow transfer the balance to his card (the seller - if he has one) then we might be in luck.

I've been looking at loan amounts and I see that If I took out a loan and paid it back early I would only incur 1 month's interest. Say I took £5,000 at 8% APR over 3 years. How much interest would I expect to say if I wanted to pay off the loan in 6 months time if it's only a 30 day interest payment? Is there a 'gotcha' in this? Thanks!

TheTrainDriver

I bought a new Citroen about two years ago on a credit card. The dealer did not want to take a credit card but did, without fees, when I said it was the only way I could pay for it.

Even if your seller says they can't take a CC, they more than likely can and probably will do if push comes to shove. You should check with the vendor, even if they won't do it for free they might do it for a surcharge that may be cheaper than all the balance transfer fees.

YorkshireBoy

vipergrm wrote: »

How much interest would I expect to say if I wanted to pay off the loan in 6 months time if it's only a 30 day interest payment?

Around £30...if the loan allows favourable early settlement.

http://www.whatsthecost.com/loan.aspx

Probably best to take this particular aspect to the loans board for better advice.

If you hadn't applied for the Tesco card, and you had a very good rating, it's possible you could have had 0% for 10 months for a 1% fee (and worry about shifting the balance next year) by going with the M&S card Sterling travellers cheque loophole. Not intended to make you feel worse...just to ask first before acting next time.