Card or Loan to lend £4k for new car??

wesfest

I need to lend £4k to buy a car that will last me for 6 months prior to my round the world trip - at which point I intend to sell and pay off.

I was obviously thinking of lending on a 0% card

Just before I jet off I want to sell the car and use the sale cash to pay the card off (Of course the car may lose some value but I am not anticipating much over 6 months)

I was thinking of the PLAY card given that they have the £15 freebie - is this the best card??

Is this a sensible thing to do or should I go for a loan??

Should I pay some ££ off each month to improve my credit rating and thus my chances for when I next require a card (I will probably need another one for when I embark on my trip!)

Any comments would be appreciated!!

opinions4u

wesfest wrote: »

I need to lend £4k to buy a car that will last me for 6 months prior to my round the world trip - at which point I intend to sell and pay off.

I assume you mean you need to borrow.

I was obviously thinking of lending on a 0% card

The card company lend the money, you borrow it and then repay it.

Just before I jet off I want to sell the car and use the sale cash to pay the card off (Of course the car may lose some value but I am not anticipating much over 6 months)

What will you do if the debt is more than the sale value? What will you do if you can't sell the car?

I was thinking of the PLAY card given that they have the £15 freebie - is this the best card??

MSE highlight a handful of cards.

Is this a sensible thing to do or should I go for a loan??

Low/no rate card with low/no fees seems reasonable, but you have to make sure that you can buy the car on a card. Many second hand car places won't do credit cards or will charge a large fee.

You also want to be careful if you have to use a cash advance or credit card cheque - fees and high interest if you do!

Loans often have early repayment costs, cards usually don't.

Should I pay some ££ off each month to improve my credit rating and thus my chances for when I next require a card (I will probably need another one for when I embark on my trip!)

You should make sure you maintan the debt with at least the minimum payment.

RobertoMoir

Why do you need to spend £4000 on a car to last you 6 months?

CannyJock

wesfest wrote: »

I need to lend £4k to buy a car that will last me for 6 months prior to my round the world trip - at which point I intend to sell and pay off.

You might want to google 6 month car rental - you can get a "long term" car rental deal, first one on the list I looked at has 6 months rental for £1,684.68 including VAT.

Whether you can pay this by a 0% credit card or not you'll need to look into.

wesfest

CannyJock wrote: »

You might want to google 6 month car rental - you can get a "long term" car rental deal, first one on the list I looked at has 6 months rental for £1,684.68 including VAT.

Thanks for the feedback, unfortunately I have had bad experiences with lease cars - mine has just gone back and it is like throwing money away.

If i buy a car for 2k what are the chances I will lose 1k over 6 months?

Therefore buying then selling sounds cheaper for me.

I want to spend about 4k because I do a lot of miles and need something decent for work - I also work in the trade so would have to endure a lot of stick if I went for a banger!!!

COOLTRIKERCHICK

to be honest we have never spent more than a 1k on a car, and they have lasted us for years... so well and truely had our moneys worth.

why dont you buy a car for a few hundred quid? one with tax and mot ok might not look good for your street cred, and you could either sell it on, or weigh it in for scrap,,, so you will have the minimum amount lost..

I am sure you could pick up a car that will last oyu 6 month for a few hundred quid..

this way you are not tying yourself up in debt.... also you will never get back what you paid for the car...if you buy it from a garage.. you will lose at least 1/3rd of what you paid for it...

Any

wesfest wrote: »

Should I pay some ££ off each month to improve my credit rating and thus my chances for when I next require a card (I will probably need another one for when I embark on my trip!)

Any comments would be appreciated!!

Are you sure you can get 0% card now if you are worried about getting one in the future? All 0% cards are main stream cards and you have to have very good credit rating and some existing credit history to be considered...

Better to consider this before you apply, before applying leaves marks on your credit report and more then 2-3 applications (even if refused) don't look good on your report - it's a sign of being desperate.

mintymoneysaver

We took out an egg loan when we bought a car, the reason being that at the time it had no early repayment charges. We had the money but it was tied up in an isa so we took the loan out over 36 months ( lower rate of interest) paid it for 4 months, then took the money out the isa and paid it off with that. Perhaps you could do something similar?

http://www.moneysavingexpert.com/loans/Interest-free-short-term-loans

MUM40

i was going to suggest go for a car rental for 6 months. when we sold our last car, only last year it took us 6 months to sell and was only GBP 950.00

hattiefats

I also work in the trade so would have to endure a lot of stick if I went for a banger!!!

True but you'll be off around the world in 6 months so you'll have the last laugh!!!!

RobertoMoir

wesfest wrote: »

I also work in the trade so would have to endure a lot of stick if I went for a banger!!!

A lot of stick eh? So much that explaining that it was only to last you for 6 months and that you didn't care about the opinions of the person giving you "stick" one way or another would be out of the question?

It's none of my business at the end of the day, I just think that someone embarking on a big trip as you are would surely want to avoid needless expense, surely the trip will be expensive enough as it is?