whats the best way to get a car loan

MKUX3

Looking to get a car loan for about 19K

Could I get this through a credit card for me and my husband saying half each and then pay it off with the 0% rate for 15 months.???

I see sainsburys finance has apr 0f 8.9%

what are my best options here???

Simon11

Can you afford a 19k loan!!

Do you have any other debts, whats your current income, ect Finance history

SueC_2

It's certainly possible to buy a car on a 0% credit card. Things to bear in mind though:

- Will you be able to pay the full amount off before the 0% deal comes to an end? If not, you need a plan in place for what happens then. 0% balance transfers are possible, but 1/ there is a fee to do the transfer (normally 2.5-3.5% of the balance) and 2/ they are not in endless supply, so depending on how long it will take you to repay the full amount you could end up with nowhere to transfer it to and having to pay credit card interest rates (typically 14.9% - 19.9%) on the outstanding balance. Balancing these costs out over the full term and amount of the loan this may still work out to be not too bad a deal and perhaps better than any standard loan you could take out from the start. But you need to do the maths to work it out for your particular circumstances so that you can make an informed decision.

- Many garages add a percentage to their sales price if you are paying by credit card, so, if applicable in your case, you need to factor that into your costs.

- How flexible do you want your payments to be? Most loans are based on a fixed monthly payment. You are penalised (understandably) for under-paying, but also if you over-pay or want to settle early. This problem doesn't exist with a credit card - so long as you meet the minimum monthly payment each month you can (and should) pay as much more off as you choose, and there is no penalty - which is really useful if your income fluctuates month by month and you want to chuck whatever you've got at clearing the debt.

You may be aware of it already, but Lovely Martin has a wonderful tool here: ttp://www.moneysavingexpert.com/loans/cheap-personal-loans#calc

You can use it to work out the costs involved in various scenarios before you make your decision.

Tixy

That is a huge amount to be trying to borrow on credit cards. Unless you already have an open credit card account with that sort of limit that you can use then your chances of getting a new card with that sort of limit (or even half that limit for both you and your OH) I would think are virtually nil.

Even if you did manage to get new cards for such a high limit then can you pay the debt off in full over 15months? if not don't bank on getting any more cards to BT the debt to, so you could end up with a very high APR.

And at that point you may even find that if you try to move to a loan in 15months that the loans available to you are limited - as you will already be showing as having high unsecured debts.

I'd suggest that if anyone plans on borrowing all of a car cost that £19k is way too much to be spending.

Wutang_2

Dreamlinefunding wrote: »

Good credit scores are the primary requisite for a good auto loan. Lenders offer lower interest rates to customers with good credit scores. Hence, it is important to have good credit scores while going for an auto loan. It is wise to approach an independent financing agency for an auto loan rather than letting a dealer arrange one. This provides increased freedom when it comes to negotiating car price.

Who do you suggest Mr Spammy?