financing balance on new car

number9

Hi
After having her car smashed up by someone at xmas, my wife has decided to buy a similar but newer car as a replacement. She has been offered £3800 for the write off (fair) but is looking to spend £6500-7000 on the new car.

We're trying to decide how best to finance this bearing in mind that banks tend to offer their best rates on loans of £5000+ or even £7500+.

We have no savings...but combined income of around £48k pa. Is the credit card route worth pursuing for this amount of balance £3-3.5k then switching when the interest free purchase period ends?

Tixy

Do you have an existing card with a 0% promotion with a large enough limit?

Is she planning on buying from a dealer? Some dealers try to impose extra fees if you pay be credit card (though you may be able to negotiate on this).

How much can you/she afford to repay each month?

CLAPTON

with no savings but a very reasonable income one might want to consider avoiding debt and build up some savings

you can easily buy a decent car for 3,800

number9

I am looking to change my credit card this month as my Tesco 0% BT is running out...Is it worth going for something like the AA card, spending the £3k or so, and then doing a BT to another card just before the end of the 0% period? I would like to think we could afford to pay the £3k over 2yrs.

number9

CLAPTON - you say avoid debt. We already have it from a period in our lives where we had a small single income and 3 kids to bring up and a number of circumstances which necessitated raising money. Believe me, we are trying to reduce this. I wouldn't be posting on this site if I wasn't trying to be careful! We need a decent reliable car to gives us several trouble free years and perform well over a long commute.

CLAPTON

number9 wrote: »

CLAPTON - you say avoid debt. We already have it from a period in our lives where we had a small single income and 3 kids to bring up and a number of circumstances which necessitated raising money. Believe me, we are trying to reduce this. I wouldn't be posting on this site if I wasn't trying to be careful! We need a decent reliable car to gives us several trouble free years and perform well over a long commute.

something around 3k would suit exactly