How should I pay off my new used car?

adiwood

I am going to buy a used Honda Civic 1.8 SE.

I can put a deposit down of £2000 and will get £500 for my car, although I will hopefully get the price of the Honda down when i haggle.

This will leave me with £6499 left to pay.

Should I be looking at paying this on a loan or is it safe to buy on a Credit card such as shown below.

I will be able to pay the balance off before 1st Jan 2012 but have I missed anything? I guess the only issue is that the Credit Card will have a credit limit on it lower than the above.

http://www.capitalone.co.uk/creditcards/premium-plus-credit-card.jsf

Anihilator

likely to be a credit card surcharge

adiwood

But then, that might be cheaper than having a loan?

Loan rate is 8.8 APR while that credit card is 6.9%.

I can avoid the charge by transferring the money into my bank account first.

vaio

It might be a good idea to pay at some of it on the card direct then you get the s75 protection

McKneff

I managed to haggle the credit card surcharge off paying for my car and got £300 off, and carpets and used my amex cash back card.

if you dont use your credit card for the full purchase then pay at least £100 on it for sectin 75 protection. This then covers the whole of the purchase.

vaio

It doesn't need to be £100 on the card, any amount will do

adiwood

Do you know if there is a chance I could pay some on one credit card and some on another?

Want to make the most of the Interest free cards I have.

McKneff

No problem at all, at least i did that with mine as i had a credit limit of 2.5K on each card.

in fact, I paid 2.4k on each cc and £200 on my debit card, so i used 3 cards altogether.

Enjoy your new car - I'm still in awe of mine and i love it. An 09 bright red Corsa

adiwood

You bought a 09 Corsa for 5k?! Guess you had part exchange or scrappage?

I think I have two options.

1. Pay £6499 on a loan - Costs £883 in Interest over 3 years
2. Pay £1499 on Interest free CC (maybe 2% - £29.98 surcharge) and £5k on loan - Cost £679 over 3 years.
3. Pay £6499 on Interest free CC - 3 in all (Tesco,Sainsbury,Virgin) (maybe 2% - £129.98 surcharge) - Cost balance transfers 2% of outstanding balance)

Not sure what option to choose. Option 2 feels the safest and maybe after the balance transfers have gone through it wont make much difference.

adiwood

I think Option 2. Although I am very good with money moving around the 0% deals does sound like quite a bit of effort and there is a risk I could get it wrong!

McKneff

No, i had part exchange, the Corsa we bought was preregistered in May with only 18 miles on the clock and we got it for £9.2 and got £4.2 for our 4 year old Aygo Sport.

I luv haggling me.