Buying a car, possible with credit card?

MK55

Hi,

I'm buying a car next friday it's £4000 and the bank have approved a loan with an apr of 18%:eek::eek:
After speaking to my friend who is selling it, it is currently on finance so i am going to ring the finance company with my friend their and pay off the remaining balance so i know the car is mine, however i have been thinking....

I have a 0% barclaycard until august 2013 could I use a credit card to pay off the loan??

I could then do a BT next year, but tbh i'm hoping to have it cleared, within 16 months so even 4 months of interest at 7.9% is better than a devilish 18%.:j:j

What do you all think?

Thanks,

patd1967

We sold our sandwich shop in 1996 and the purchaser paid £12k by card and paid it off in just over a year,they said it was cheaper than a loan

Eonel

Dealer will usually add a surcharge (2.5%) for paying by credit card. But even so, the maths would seem to show it is worthwile.

If dealer does not add a surcharge then the chances are you are paying too much

Remember to pay off your credit card as if it were a loan - not just the minimum payments !

Buzby

Check with the dealer first, as mine refused any payment bY CC for purchases (but not for servicing, accessories and the like).

chanz4

Its not a dealer, read the ops post it says finance company

Eonel

chanz4 wrote: »

Its not a dealer, read the ops post it says finance company

Fair point. Anecdotally a finance company will also take a credit card if you pay a surcharge. But never tried it myself.

Also not sure if the finance company will be concerned that the card paying off the finance is in a different name to the holder of the finance.

zerog

Eonel wrote: »

Remember to pay off your credit card as if it were a loan - not just the minimum payments !

If it's 0%, then min payments are fine as long as OP is disciplined.

chanz4

Peugeot finance wouldn't let you

MK55

Thanks for the info guys :-)

The agreement with the car garage is through blackhorse finance. Have scoured the Internet but can't see if they accept credit card payments.

I've accepted my bank loan as I have 14 days to cancel and I buy next Friday so can either pay with credit card if they accept, if not I'll use the loan. Makes me cry with the APR though!! :eek::eek:

Will let you all know, thanks for help & advice :j:j

Curr946

Just thought I would point out the obvious, the car is Unlicky to be of equal value to the outstanding debt on it. Have you looked at eBay etc?

MK55

Curr946 wrote: »

Just thought I would point out the obvious, the car is Unlicky to be of equal value to the outstanding debt on it. Have you looked at eBay etc?

The car is an 07 mini it has £2500 with the finance company, my friend is selling it to me cheap at 4k as they have just landed a job in Dubai, and they had 9 days to sell it. Lucky me :j:j