Will this work?

MEM62

ToReadItSanctifiesIt wrote: »

It may well take me over 4 years to repay the debt. Clearly that is not ideal, but it is a manageable low cost debt that I see as a small burden in the face of no other debts to speak of, either now nor in the foreseeable future. So that's okay?

Your problem is that you are planning to take a long time to pay off a large sum of money that you have spent on an asset with a value that will fall faster than you are clearing the debt. In the end you'll still be paying for the car long after it has gone. You will then not be able to afford your next car because you are still paying for this one.


Also, your plan assumes that interest free credit will be available to you for some time. What happens if it is not?


Your plan is not without its plus side but I think you need to plan to clear the balance before the interest-free period on the first card expires. That way you have a viable plan.

MallyGirl

and you have to think about the fact that you will still have £5k available credit when you apply for card 2 so you may not get it if your income won't support £10k worth of credit. You know you intend to transfer the balance but they cannot guarantee that you do so have to assume you will keep both.

[Deleted User]

ToReadItSanctifiesIt wrote: »

I want to buy a car for £10,000.

If you're having to dig in the sand to find £5000, maybe your "want" is beyond grasp right now?

If, on the other hand, you "need" a car, there are much cheaper ones than £10k in Auto Trader

NPHammer

I've actually done this in part towards a car purchase. From a franchised dealer.

I had a 15 months 0% purchase card. Paid £4k on it. Pay £100 a month off that over 15 months leaves £2500. Balance Transfer that to a 24 months card for as low as 1.5% transfer fee at the end. 39 months credit on 4 grand for £37.50

I'm making a significant profit on the money I would have used on the car in market leading rate savings accounts. It can be a profitable stooze.

The dealer did have a 3% credit card fee. I negotiated them waiving this as part of the deal I agreed on the car. If you don't haggle at a car dealers you need to have a word with yourself.