Buy car on CC or finance or cash!

scan1703

Hi,
I am about to buy a car, after part ex I will be left with £5000 to settle. Having never had a credit card I don't really understand the 0% mularkey? I do have the £5000 in savings and have a mortgage, my credit rating is good.

Should I go for the garage finance option, think this is about 9%, get a Tesco CC with 12 months 0% finance or simply part with my savings and start again. Wanted to keep the cash for emergencies to be honest but if save me lots of interest I will do that.

With Tescos card I would pay the £5000 then try and clear buy end of 12 months, failing that could I simply transfer to another 0% card at that time?

Kind regards

Gary

KingElvis

If you've never had a credit card you can instantly dismiss the Tesco card with a 5k limit.

I'm sorry but you've as much chance of getting that as I have of visiting Pluto.

The garage interest will also be a flat rate con so your bank will be the best option by far.

lisyloo

Is your mortgage fleixble, do you have an overdraft?
If you part with your savings then what I'm asking is do you have access to other lines of credit in an emergency?

If you have access to other lines of credit then I'd use the savings.

Could you drawdown from your mortgage to finance this?

scan1703

Hi, OK that sounds like Tesco's is a non starter, is t because of the amount £5k? What about if I split it £2500 cash and £2500 on card?

No mortgage isnt flexi just straightforward fixed, I do have an option to pay extra off but dont want to involve the mortgage with this purchase.

I guess I could just go back to dealer and offer £4500 cash now, see what he says! If he agrees I could then just pay out of saving sand start to build them up again.

KingElvis

It's the company and the total. Tesco only lend to the cream of the crop with an established credit card payment profile.

If you want a CC and you've never had one, you'd need to start with a Crap1 or Initial card from Barclays.

lisyloo

is t because of the amount £5k?

You won't get a 0% deal if you haven't had a credit card before.
It's not the amount.

scan1703

Right, that's the end of that then, thanks for your advice looks like my savings are getting wiped out!

ironlady2022

Hang on, I would try for a 0% balance transfer but not one of the longer term ones, though you've never had one doesn't mean you will not get one. Yes chances are slim but if it means you can get it on 0%, trying won't hurt to test the waters.

Malky

scan1703 wrote: »

Right, that's the end of that then, thanks for your advice looks like my savings are getting wiped out!

In all honesty, that's the best way. Why have savings if you're not going to spend them? Me and the Mrs have wiped out our savings a few times over the years buying furniture or cars etc but you'd be amazed at how quick your savings build back up.
Why pay to borrow money when you have it in your hand already?