Buying a car with a credit card

500miles

I don't currently have a credit card or any other debt but I am forced to look at replacing my car and am wondering if a 0% credit card is the best means of doing this? I have a deposit of £4800 made up of savings and likely trade in and can afford £200 a month repayment. I have applied for a bank of scotland platinum mastercard which came through my door offering 0%p.a. interest for first 9 months on purchases. I have no idea how much of a credit limit they might offer me.

Does this mean (credit limit willing) I can put £7200 (36 months*£200) of debt onto it, pay £200/month and transfer the balance of the debt to another 0% balance transfer card when the 9 months runs out? I have an application form for a capital one card that came through my door offering 0% interest on balance transfers for 15 months. If I keep this up for 3 years the debt will be cleared. Am I forgetting anything? How easy is it to get 0% credit cards?

Any advice gladly received by debt novice.

PS. I have posted this on the credit card thread as well, except that I think I want a vw touran, preferably under 4 years old and diesel. Is this a good idea and feasible with my budget?

alwaysonthego_2

Though it sounds good, if you have never had a credit card before you will be very lucky if they lend you a huge amount of money. Normally with a credit card you may at first get £1000 and they will keep increasing it, whether you want it or not.

dzug

I don't think you are forgetting anything. How easy they are to get I've no idea. As you haven't had a card before, maybe not very.

However you may find car dealers somewhat reluctant to accept a credit card for the full purchase price of a car - deposit no problem, but £7200 no way.

500miles

Last time I bought a car (8 years ago) I payed £6500 with a debit card without any complaint from dealer. Credit card would only be used for any balance over £4800 deposit. What do dealers want? Cash in a brown envelope?

dzug

500miles wrote: »

Last time I bought a car (8 years ago) I payed £6500 with a debit card without any complaint from dealer. Credit card would only be used for any balance over £4800 deposit. What do dealers want? Cash in a brown envelope?

Debit card no problem - they only pay a flat rate processing fee of maybe 50pence whatever the amount charged to the card.

Credit card they are up for a % of the amount charged. They'd at least want to factor that into the price they are charging you.

alwaysonthego_2

maybe you could transfer the money to your current account from your credit card

500miles

alwaysonthego wrote: »

maybe you could transfer the money to your current account from your credit card

Thanks but I don't think this would work with the "0% interest on purchases" deal.

alwaysonthego_2

500miles wrote: »

Thanks but I don't think this would work with the "0% interest on purchases" deal.

It did on my abbey card, there was a offer on balance transfers 0% for 12 months, there was a small fee. I wanted to transfer it to pay off my virgin card but because there were both mbna they wouldn't do it, but said it applied to transfering money into your current account. Hope this helps

Diggla

I recently bought a van with my credit card and was charged a handling charge of 2% by the dealer.
Paid the balance in full when I received the credit card bill.