Money for new car

Hayboy77

We need £4000 for a new car. From what I can work out it is cheaper to get a credit card than a loan. I work part time and earn £10500. I have a very good credit rating, also am on a mortgage. Would there be a card I could have a credit limit of £4000 with a 0 percent interest for as long as possible. I wanted to set up a direct debit from my bank account and pay it off every month. Any advice would be appreciated.Thank you

heartbreak_star

If you have no other debt than that card, possibly.

Why £4000? I have a nice little Getz that only cost £2k and you can also get decent cars a lot cheaper than that...

HBS x

Foxy-Stoat_3

Not sure about 0% on purchases but if you apply for a couple of cards, you can make the purchase on one, then balance transfer to the other for 0% for 1-2 years.

Make sure you make monthly payments on time and pay enough each month so you never pay interest, ie not just the minimums.

Hayboy77

We need a 7 seater, as have 3 children. Have seen a car for £5, I have £1000 towards it. Also we have moved to the sticks so wanted a 4x4. 5k seems to be the going price for what we need x

Paully232000

don't forget that the car dealer, if they accept CC as payment, will more than likely charge a fee of a few % for doing so.

Herbalus

MBNA offer a "money transfer" that pays money into your bank account for about 4% (I think). Look them up. Otherwise you're going to have to wait until you've 'saved' £4k while putting it on 0% purchase card.

If your only income is £10,500 then paying off £4k in 3 years or so is going to be quite an effort though, right?

Foxy-Stoat_3

Paully232000 wrote: »

don't forget that the car dealer, if they accept CC as payment, will more than likely charge a fee of a few % for doing so.

I think a 4% fee will be the least of the OP's costs if they make even one default on the repayments !

Paully232000

Foxy-Stoat wrote: »

I think a 4% fee will be the least of the OP's costs if they make even one default on the repayments !

True, but would be the first question i would ask though as if they don't accept CC,limits the CCs that he can apply for, and needs more than 4000 limit, which on his salary may be an issue.

Hayboy77

Maybe I would be better off getting a loan then do you think? I have written down all my ou goings and I do have enough to pay every month and I would definately set up a direct debit to pay things off. To be honest I hate borrowing money, but we have to get the car quite soon so I can wait to save the money up unfortunately

Foxy-Stoat_3

Hayboy77 wrote: »

Maybe I would be better off getting a loan then do you think? I would definately set up a direct debit to pay things off.

Yes, get a loan for your new car, and yes, you will have to set a direct debit anyway.

Pay for it over 24 months maximum, so you wont still be paying for it if/when it goes dreadfully wrong or you want to change.

PinkPoppies

As someone who has bought a big family 4 x 4 in the past (for very similar reasons to those you have mentioned), and bitterly regretted it down the line... I would strongly recommend that you weigh up other options before deciding you NEED one.

Please don't underestimate the running costs of a big 4 X 4, especially an older one in the price range you are looking at. Our diesel costs were eye watering and things like tyres are SO much more expensive to replace compared with a regular car.

There are several great family cars out there that you could pick up for half the price (or less!) which have plenty of room for three children's car seats (or three adults) in the back, with boot space too. For example- we hired a Ford C-Max on holiday once and it was incredibly roomy, even with my incredibly tall husband driving with his seat right the way back- we wished we had gone with one instead.

We too lived in the sticks so I DO understand the appeal of a 4 x 4 (we bought one after all!), but having lived with both and coped just fine with a 2 wheel drive I would urge you to very carefully consider the benefits vs the additional ongoing costs before you rule out other cars.