Credit card to buy car!?

angelc5

Would this be advisable?

Was thinking about applying for a new card with 0% on purchases, then transfer to a 0% on BT...and keep going for however long it takes!

Can afford £120-200 month, and would like to keep this monthly payment rather than just the minimum.

Looking to purchase £4-5k on card.

My head hurts after looking for deals....halifax and virgin both have 0% on BT and purchases for 12months.

Don't intend on using the card for anything else other than paying it off.

Any suggestions would be gratefully appreciated....or would another form of loan be better!?

I have just applied for &more card, but that was to transfer an existing balance to pay it off....or do I use it to purchase the car?

Thanks!

Dead_Eye_Jones

Bit of a risk? What happens if you cant get a 0% deal when the 1st one runs out - you cannot be certain you will find another deal. You wil be then stuck with a very expensive interest bill. CC companies are getting tighter all the time as consumer power has closed a number of their money spinners (the unfair charges fuss). Perhaps only do it if you have the full amount set aside in a savings account, so you take benefit of the interest - then it seems to make sense.

Personally Id save first, and then buy. And if that meant struggling by in the meantime - so be it. I was brought up to only spend money I had...

molerat

Very few if any dealers will accept CC for car purchases unless you agree to a 2.5 - 3.0 percent surcharge.

angelc5

hmmm ok....we've only been driving for 2 years, our work and personal life got to the point where we had to get a car.....and it's been a nightmare this week not having one...having to borrow others etc and I'm not a huge fan of borrowing money, but this is almost unavoidable.

Will also need to look at whether they will accept CCs!

David_B_2

As advised by molerat, I have no doubt that they will charge a 2 or 2.5% surcharge at the very least for using the card.

Check and then add this to the total cost before making any decisions?

aj3001

I was never charged anything extra to put a deposit down on cc

login_details

Try this - apply for a personal loan with no penalty for early repayment. Apply for an Egg Money card and a Post Office CC. If all applications are successfull and you get the balances you require on the CCs then transfer £xxxx to the Post Office CC (at 3.9%) from the Egg Money card (accepts +ve balances) and then pay off the loan via the Egg Money card. Hope this makes sense.

Charlton_Taz

I bought a new ford fiesta in February on credit card and paid the majority of the cost on a credit card as I have a 0% on purchases deal till July 2007. Salesman said it was ford policy to charge a max. 1% for credit card purchases which I thought was pretty good as I was expected a 2-2.5% charge. I'm in agreement with posters above though that you should have a good plan for repayment as you are not guaranteed another 0% card once your first deal runs out. I had already saved the majority of the cost of the car when I bought it....and will have the total amount of cash I need to pay off the credit card saved by the end of this month....so will then enjoy my "free" interest on my savings until July!!!

angelc5

Thanks guys! think I need to start saving and paying back while the card is still 0% interest on purchases til 2008......now I need to do my sums.....:eek:

save-a-lot

Hi

I have bought a car on a CC and had no problem at the dealership. Cannot remember if there was a charge. Anyway, a charge would equate to alot less than taking a loan. There are always 0% deals around aswell to move to. I suppose the key is to pay off as much as you can in the 0% deal period.

Kenp_3

Anybody else been caught by this 'scam' ?
I have a 0% deal with MBNA, which expires in Oct.Unfortunately missed a monthly payment, and was charged £12 late fee PLUS and interest fee on the whole amount, which came up to £52.
THUS my forgetfulness has cost me £64, which I think is far too much.
Anything I can do about this ? apart from pay my bills on time !!