Buying a car with a credit card!

CannyJock

MEOW2 wrote: »

Thanks for the reply, that's interesting, could you explain that in more detail?

You would do one or the other, not both. Which one is better for you depends partly on monthly affordablility.

If the dealer will take a credit card payment, you would want a 0% purchase card. If they don't then you would want a super balance transfer card and transfer the money to your current account.

A lot of it comes down to how much you can realistically pay each month, your chances of getting a "new" 0% deal every 11 months, and how clued up you are to stay on top of switching the balance.

You could save money in interest, but takes a little bit of diligence.

TFD_2

catflea wrote: »

Credit cards are things to be paid off in full each month. They are very good devices for building your credit score though.

I think that's a bit of a simplification. Used correctly, credit cards can represent the cheapest borrowing currently available.

However it's irrelevant as she's unlikely to get a limit of more than a few hundred quid, and no chance of 0%. Best bet is to start building history now - with Cap One, Vanquis, etc. and then reevaluate in a years time. By then you should be earning more than £6K a year so have considerably more chance of getting finance one way or another!

MEOW2_2

Thanks for all the replies everyone

I must say you've made me look at it all differently. I did release I'd be paying alot of money each month for quite a few months

Little bit of thinking out loud here...

I spend £15 on my phone bill, £85 on insurance and around £65 on petrol, as well as about £20 on food ect so that leaves me with around £260 each month, and if I was to pay say £150 repayments I wouldn't be left with much..

I think my best bet, is as you've suggested, to get a card and use it to pay for my petrol and get my credit score up while I'm still on rubbish money and cross my fingers for when I am offered more money, also the car I want (Mini ) will go down in price by then!

Oh!! One last tiny question! hehe

When I apply for a credit card, I know they ask for your current employers address. Now my employer is nationwide, so do I put the address of the office where I actualy work, or our registered company address?

Once again thanks so much for the advice Much appreciated!

BadgerFace_2

Hi there,

I feel in a position to reply to you, having been an apprentice and also bought a 9k spanking new car days after my 18th birthday.

Firstly, the fact you are on an apprenticeship means you have great prospects job wise (as long as you complete it...don't let your employer give you a permanent contract before you have finished it, you would walk away without your certificates which, trust me, really do make you employable). If you wait till you have finished you will have no problem whatsoever affording a car and house etc. I know full well this is easier said than done, patience is not a virtue most of us youngsters possess.

Secondly, having done exactly what you plan to do, I think it really restricted what I was able to do. I was earning roughly the same as you and most my money went on the car, I did pay for it in the end and never missed a payment... I'd still rather have had the cash instead though to go to the pub with

So really what I'm trying to say is it's up to you, I advise to wait a year or two; but if you do do it be prepared to sacrifice other things for it and make sure you pay for it, it'll screw your finances for a long time if you don't.

As far as 0% credit cards, I know someone who bought a 30k 350Z on them, it worked fine, but you have to be REALLY careful as you could end up paying HUGE interest.

G'Luck

MEOW2_2

Thanks BadgerFace

Very nice to hear from another apprentice!

Funnyly enough I'm on my 3rd apprenticeship (6 month contract) haha with a company who provides apprenticeships.. If that makes sence! They've already offered me a perm job but unfortunatly it all went a bit t*ts up! But they really love me, I have proof since they brought me a Tiffany necklace for my birthday! (Someone else had a 18th as well as they brought them nothing but a cake!)

Hopefully I'll get a pay rise soon and i'll be able to save instead of borrow! Or maybe borrow a lil!

But can I ask how you did it exactly? Like did you buy the car from a dealership? Cus I wasn't thinking a brand spanking car, I do barely 2k miles PA so having a few miles already wouldn't make me scream

Again, thank you!!

catflea

Doing 2000 miles a year is a car really nessecary? You could look into getting a scooter which would be much much cheaper to run......

Only a suggestion and if you like having a car then keep one

MEOW2_2

I've thought about a scooter, it would be so much cheaper, but I'd be much too scared to ride one in traffic, plus I like the fact a car is warm and plays music!

Thanks for the reply

MEOW2_2

I've got another question I'm full of them aren't I

Finance made directly for cars? Like the sort you get with a dealership

I know these usualy have quite high aprs.. But is it more safe? (Then what I wanted to do)

Thanks again

BadgerFace_2

Hi,

Good to hear you're getting on well with work!

As far as buying my car, I kind of knew I wanted a Fiesta, mainly because they had an offer on and the insurance was reasonable for my age (£950). I just walked into the dealership and told them what I wanted, then haggled a little...he came off better than me, but hey I was excited to be buying the car!

The finance wasn't really a problem, mainly (I think) because it is secured on the car anyway, so they know even if they take the car back, they get to keep all your payments, your deposit and then chase you for even more on top! It works differently on second hand cars though, I've never bought one, so no advice there.

Hope that helps

P.S. I also had a scooter till I was old enough for a car. It was SO much more fun...unless it rained, then I had to walk around work all day with wet undercrackers!:(

alfred64

MEOW2 wrote: »

**** The title is susposed to read "Buying a CAR with a credit card!" Silly me! Sorry!

Why then don't you correct it?

click edit and then click 'go advanced' and you can do it. Simple.