Buying car on credit card

boomstyliemikey

Hi I'm wanting to buy a car and use some of the money off a credit card to put towards it. Only problem is its from a private seller who obviously won't have a machine for me to pay for it. Is there Away around this as I know you can only withdraw a small amount of cash out on a credit card.

I know I could get a loan but I quite like the 0% apr rate of credit cards

Eonel

Get a card that supports Cash Balance Transfers aka Super Balance Transfers.

Transfer cash to your bank account & give it to the buyer. Will cost you a 3% fee.

YorkshireBoy

boomstyliemikey wrote: »

I know you can only withdraw a small amount of cash out on a credit card.

From an ATM maybe, but it's possible to get much more 'over the counter'.

Whether you should, bearing in mind the high interest charges, is another matter!

I know I could get a loan but I quite like the 0% apr rate of credit cards

M&S Sterling travellers cheques will get you 0% cash for 15 months for a 1% fee (assuming your bank accepts them).

Failing that, Virgin Money will get you 0% cash for 20 months for a 4% fee.

These rates go to 16% APR, or higher, at the end of the intro period though, so what will you do if your circumstances change and you're unable to clear the debt in that time and can't get another card?

lisyloo

0% cards are only available to people with excellent history.

Another question is should you?
You are buying something you can't afford to presumably pay off through future income. There are dangers with this i.e. you don't get your future income thorugh sickness, accident or redundancy and because you have taken a short term loan this could be particularly dangerous as typicl rates are 30%.

It's not a lecture but you need to consider whether you should.
Could you get a cheaper car?
Could you get the bus and save up?
Any other alternatives?

jerry111

When would buying a car using a credit card make sense?

If your loan amount is less than $5,000, some lenders will suggest that you take out a credit card rather than a loan.
In the past, the high interest rate on a credit card would have made this a very expensive way to finance your new car, but over the last few years intense competition in the credit card market has forced rates much lower.
As a result, some credit card interest rates are lower than those of some car loans, making credit cards and option to consider.
So, can it make sense to use a credit card to buy a car?

lisyloo

When would buying a car using a credit card make sense?

1. If you can make more on the money elsewhere.
For example you could borrow at 0% with 4% fee but your money is performing well in a stocks & shares ISA at 10%.

2. If you can afford it but can't get hold of the money. e.g. the knock on effect of withdrawing from ISAs and losing lifetime allowances, exceeds the cost of the loan or you simply cannot access your money right now.

So, can it make sense to use a credit card to buy a car?

When the rate is 0% or low, then yes it certainly can, even if you have the money.

I borrow a six figure sum on my mortgage even though I don't need to. Simply because at 1% it's actually profitable to do so.
"Stoozing" is a well known concept that's been around for years in the UK.
Are you from the US?