Credit card for £20k car loan?

igiiroko

Hi all,
Some months ago I stumbled upon a suggestion on these boards for a car loan to be obtained by taking out a credit card with 0% for 20 months or somesuch. In backing up that general suggestion, there was mention of a specific card -- all I recall is it had a credit limit or transfer limit of about £20k.

Can anyone help with either the general idea or the specific card, please?

Thanks & regards,
ii

Apples2

Credit limits aren't stipulated before applying, one person might get £10k, another might get £3k. You won't know until you apply.

pjcox2005

The general idea is sound (i.e. that of trying to get a loan at the lowest rate, being zero) but I think it would only work for smaller amounts.

In my mind, you'd be struggling to get £20k credit and if someone does lend that then I'm surprised the individual is not already in the financial position to buy the car.

Also consider how you will pay it back within the timescale (i.e. 18 months) as that's over £1k a month plus the normal running costs (insurance, fuel etc). If you can't pay it off in that time then stay clear as the interest costs on the excess will be a lot higher 19% plus.

poppasmurf_bewdley

To get a credit limit of £20k, you would have to be clearing a minimum of £45k. And that would be without having any other debts.

And I doubt very much whether any CC company would give a new card holder anywhere near that amount of credit - more like £5k max and build up from there.

igiiroko

Thanks all. I'd previously got the impression that the 0% credit card route was a little-known but viable alternative to dealer finance. From the collective wisdom here, it seems I was mistaken. I'm now inclined take up the Audi Finance offer, which is certainly much better than anything I found on moneysupermarket.com and comparethemarket.com. Best regards,
ii

dealer_wins

A 20K loan which you will pay £25K+ on, for a £20K car that will be worth £15K in a year.

Madness at its best!!