Maths brain needed please!!

Sunshine_and_Roses

My OH and I are buying a car, have a balance of £6400 left to pay when we collect it at the weekend. Was expecting new Virgin Money cards to have arrived by now which have a credit limit of £6400 combined, but may not arrive in time.

I have a few options available to me:

Balance transfer of cash into bank account. Total amount transfer £5825, fee £233. 26 months interest free.

Pay on an existing card then balance transfer to Virgin cards. Total amount transfer £5828, fee £174. 26 months interest free.

Hope that the cards arrive before Saturday, pay £6400 between the two darts, fee waived by garage. 6 months interest free.

I have a santander 123 account so get 3% interest on balance over £3000. Have just over this now but not enough to buy the car outright.

I think the best option is to transfer into bank account, arrange standing order for minimum ppayment each month, and hope the interest over 26 months covers the fee.

Can anyone reassure or advise me? My head is frazzled!!

Dirk_Gently_2

Surely option 2 is the best - the BT fee is lower and you get the longest period of interest free to clear this debt.

And you can definitely do that now - without sweating on the postman coming with new cards and pins.

Tixy

Balance transfer of cash into bank account. Total amount transfer £5825, fee £233. 26 months interest free.

Do you mean BTs from the new Virgin accounts? Have Virgin confirmed how quickly the transfer will appear in your bank accounts? Will it be in time for you to make a payment at the weekend?

Pay on an existing card then balance transfer to Virgin cards. Total amount transfer £5828, fee £174. 26 months interest free.

Does this card(s) have any balance currently? If not then that is likely the best option for you, as the fee is lower.

Hope that the cards arrive before Saturday, pay £6400 between the two darts, fee waived by garage. 6 months interest free.

Can you afford to repay the debt within 6months? what is the purchase APR after the 6months? If you can't what is your plan for 6months time?

YorkshireBoy

Has the dealer already agreed to waive his costs for accepting payment by credit card (some £128 or so at 2%)? If so, there was at least another £128 left in negotiations.

Could you postpone the purchase for a few days until the money transfers have been completed?

Personally, I'd do straight money transfers and buy the car that way (a few days later if necessary). Indeed, that's what I did last year (when my savings were making 3-4% AER before tax and my 12 months 0% money transfer cost me 2% as an existing Virgin/MBNA customer).

Finally, re your repayment method...I'd avoid standing orders altogether and go with a minimum payment DD as my insurance policy against losing the deal and having to raid my emergency savings.

Sunshine_and_Roses

Thanks all. I have negotiated the fee being waived for credit card payment already, s that's not an issue.

I have a post office credit card which I use for spending abroad, no balance on there, and enough credit limit to pay the for the card in full. This card is in my name only, was worried that I could not transfer to another name ie half on my new card and half on partners, but seems to be acceptable.

I have some savings but I would have to be really careful for 6 months, and may have to dip into my ISA for remainder, which I did not really want to do.

YorkshireBoy

clareski wrote: »

This card is in my name only

If you go this way, make sure it's your name on the invoice...just in case there's some section 75 issues down the line!

Sunshine_and_Roses

Transfer from Virgin accounts into my bank account is overnight if done before 3.30pm. Could do this tonight or tomorrow and be in my bank by Friday.

Not sure on interest rate after 6 months, would have to check. Would rather pay out of ISA than pay credit card interest rates.

The main problem is not having the cards and pins yet, may not come until Tuesday.

Sunshine_and_Roses

YorkshireBoy wrote: »

If you go this way, make sure it's your name on the invoice...just in case there's some section 75 issues down the line!

Never thought of that, how might that affect me? OH will be registered owner of the vehicle.

YorkshireBoy

clareski wrote: »

Never thought of that, how might that affect me?

Because there wouldn't be a D-C-S relationship, necessary for section 75. There was a recent thread on here where the card company refused a section 75 claim on this issue.

OH will be registered owner of the vehicle.

Don't think there's such a thing as "registered owner" is there?

Registered keeper and legal owner do not have to be one and the same, although I'm not sure if you get complications then with insurance...because the question is usually asked "are you the registered keeper and legal owner of the vehicle?".