Buying a car - cash or card or loan ??

Dokimos

Hi

I am getting a car - my first. It's a 2006 Honda Jazz 1.4 semi-auto for £4,000.

I have managed to scrape together the cash but wanted to ask here what people would suggest.

Pay cash, or

Pay on a Tesco credit card (will be charged 2%) but get some vouchers, and then pay the card with cash, or

Get some sort of loan from the dealer or bank or other

(a 0% interest credit card in unfortunetely not an option)

Any ideas / suggestion?

Savvy_Spender_South

Loan will cost upward of 10% APR presently so thats going to cost nearly £1000 more over say 4 years.

Cash, can you negotiate a small discount like a couple of hundred off or a free service in six months?

Tesco card £4000 +2% £4080 so £80 in costs but what is the reward?

1 point for £4 so $4080 = 1020 points or £10.20 in vouchers, at best 200 airmiles or £40 online redemption.

No way mate, If you have a spare £80 i will happily take it and send you 200 airmiles!

vaio

As it's from a dealer it's worth sticking some of the cost on a credit card so you get the S75 protection

mountainofdebt

If you pay over a certain amount on a credit card, be prepared to have a credit card charge applied.

May be worth just paying up to the limit that they will allow on a credit card without a fee and then pay the rest on a debit card.

The reason I say use a debit card is that money laundering laws may prevent the garage accepting that amount of cash

Savvy_Spender_South

You only need to part pay on a credit card for S75 to apply to the entire purchase - i know amazing!

Spend just £100 on the CC, and for a £2 fee you get £4000 of S75 cover... winner!

vaio

or real MSE, get them to stick a quid on the card, give them the 2p and still you get the full cover

DCFC79

vaio wrote: »

or real MSE, get them to stick a quid on the card, give them the 2p and still you get the full cover

but how would this work

Savvy_Spender_South

vaio wrote: »

or real MSE, get them to stick a quid on the card, give them the 2p and still you get the full cover

Is that right? I recall from the vast coverage of holiday firms going bust as long as you spent £100 on the card it covered the whole cost.

Perhaps that was just in relation to holidays though?

vaio

DCFC79 wrote: »

but how would this work

car cost £4k, pay £1 on the card and the rest by the method of your choice and, under S75 the card issuer is jointly responsible with the dealer for any problems with the car in the future.

Two main advantages of this, first is if dealer goes bust then card company step in, second is card company will often put pressure on dealer to sort problems out

vaio

Savvy_Spender_South wrote: »

Is that right? I recall from the vast coverage of holiday firms going bust as long as you spent £100 on the card it covered the whole cost.

Perhaps that was just in relation to holidays though?

No, S75 covers goods that cost between £100 & £30k, there is no minimum amount you have to pay to qualify

DCFC79

vaio wrote: »

car cost £4k, pay £1 on the card and the rest by the method of your choice and, under S75 the card issuer is jointly responsible with the dealer for any problems with the car in the future.

Two main advantages of this, first is if dealer goes bust then card company step in, second is card company will often put pressure on dealer to sort problems out

oh i see, i thought the minimum was £100 that had to be spent on a credit card to be covered,

edit just read the previous post, so as long as the item your buying is worth me than £100 then you could put £5 on a credit card and pay the rest using cash