credit card to buy car

jonesy18

Hi I am looking for some advice.

I want to get a new car next month (2nd hand), the car I want is about £6k, and ideally i'd like to get £6k on a loan or credit card to buy it, so I can pay it back this year and then own the car as I don't have that funding at the moment.

I have just cleared and closed 2 credit cards, one about £1200 and the other £900.

I still have one with a 2k limit with about £ £1200 on which is paying for my work van (i'm self employed)

For the last 3 months I have put in more than £750 into my account, usually alot more. (over last 6 months I have averaged £1200.)

other credit I have is phone (paid by my business)
littlewoods (should I close?) don't want to use again.
£500.00 credit card, forgot I even had need to close
and £300 store card which I also don't use.

Hopefully next month my credit report will show the closed
account's and considerably less % of credit being used.

What's my best option for obtaining the credit I want I could go for £4k and find the other 2 I need, any advice would be very helpful.

My credit score at present is 823 and fair, I missed payment on closed CC as I thought DD was setup this was about 2 months ago.

I was thinking about HSBC's flexi loan as that's who i'm with...

redhotpepper

Hi,
I was also thinking of using a credit card to buy a car. In short unless you apply for one you do not know how much your credit limit will be. But your first application is should be the best chance. Further applications reduces your chance.
I applied for tesco credit card 18 months 0% on new purchases. I was given a credit limit of 11,100. However, the car dealer said that there is a 3% card processing fee. In the end for my situation I decided that a personal loan of £20,000 at 5% APR was best one for me. I was buying a car for £30,000 and was putting down 10,000.

InsideInsurance

Based on your previous limits then the prospects of getting a 0% APR card with the limit you need doesnt look good. Also remember that car companies normally charge a percentage fee for credit card payments beyond the initial deposit.

A loan may be a better route but again the details you doesnt suggest that lenders will be tripping over themselves to lend to you. May be worth checking with a provider that does a soft search first as not to further damage your history by applying and being rejected

lisyloo

Well done jonsey for getting your finances sorted.
Could you manage with a cheaper car for the time being.
Long term it may be financially better.
I bought a £200 car in May and there is nothing wrong with it (except dents).
Just a thought.

I'm not saying you have to stay with a small or rubbish car for a long time, just that it might be a more sensible way to approach things rather than spending money you don't have at the moment.
When you take out a loan you should consider how it would be paid in the event of sickness/accident redundancy. That;s antoher reason it makes sense to live within your means.

jonesy18

Hi thanks for the reply's.

Chances are that it will be privately bought, but aiming to pay back very quickly, just want the car now.

Its a car I've always wanted, and they have come right down in price.

will try the soft search idea and see where I get.

I think the main stumbling block will be that i'm self employed

cheers Jonesy.

Claree__x

With regards to the credit card processing fee - I've managed to get this waived on a few ocassions. If they really want your sale they'll find a way to do it.

YorkshireBoy

Claree__x wrote: »

With regards to the credit card processing fee - I've managed to get this waived on a few ocassions. If they really want your sale they'll find a way to do it.

Of course they will...by inflating the price at the outset.

If the dealer is prepared to absorb, ie lose, 2-3% on the sale, then there was at least 2-3% more room for negotiation on the purchase price...wasn't there?

Of course if you don't have the money available for a cash purchase then anything you get will be a bonus, but as I said above you're paying 3% to save 3%.

Claree__x

YorkshireBoy wrote: »

Of course they will...by inflating the price at the outset.

If the dealer is prepared to absorb, ie lose, 2-3% on the sale, then there was at least 2-3% more room for negotiation on the purchase price...wasn't there?

Of course if you don't have the money available for a cash purchase then anything you get will be a bonus, but as I said above you're paying 3% to save 3%.

Sure.
My point was that folk will happily pay the 3% charge without questioning it. I negotiated to a price I thought was reasonable and then negotiated again when the CC fee was mentioned - so I ended up paying what we'd originally agreed.

Yes, I could have went away and came back and called and hummed and hawed about it, but I was happy with what I got, which is the main thing surely?