Buying a car on card.

Printer

Hi.

i am purchasing a car in march. I have 2/3rds of the cost but need to borrow another 5k.

I have a few options but i do think i have an excellent credit rating so i should be able to get a 0% card.

I have 2 options.

the tesco 0% for 16 months
The MBNA card 4% for 23 months.

I have a MINT card with a limit of 5k currently and always pay it off in full. I ave from day one.


now both of these new are via options (probably MBNA is better for me) but is it better for me to purchase the car on the MBNA card or buy it in my mint and balance transfer the money to MBNA?

Also, how likely am i to get the MBNA to 5k? will it be easy or impossible?

stephane_2

Don't forget that most dealers will charge a fee for paying by credit card....some will charge 3% to 4%....

YorkshireBoy

It's unlikely the dealer will take a £5K payment fee free...unless you can call it a 'deposit'. Even so, I would imagine they'll limit this deposit to £1K or so.

Some people will no doubt post that they've paid more than this on their cards, but my view is that if a dealer is willing to waive his 3% (or whatever) merchant fee then there was more haggling on price that could have been done.

In answer to your MBNA question, no-one here can answer it...although they are known to give some of the higher limits.

If you do go the MBNA money transfer route, be sure to at least pay something on a credit card...just to get the section 75 protection it affords.

chattychappy

Based on those figures, I'd put it on Tesco (and get some vouchers!) and then after 16 months BT any balance that's left to a new card. Yep that would likely be a 3%, but only on a much reduced (hopefully) balance.

The MBNA "4% for 23 months" is likely to be APR 4% - ie the rate of 4%. So over 23 months it would be nearer 8% (though on a declining balance).

Yep, car dealers will want a % for accepting CC, even if they don't on the deposit. Once they've got your deposit, there is no incentive for them to let you pay by CC given they are charged a fee. Don't accept a salesman's verbal promise that they won't charge a fee either.