0% purchase on credit cards

adi750crow

Morning All
I have been looking at buying another car recently, and was wondering if getting a 0% purchase credit card is the way to go.
Can someone tell me that if I get accepted for a card, I have the 27 months to pay it back before I get charged anything, or will there be any more charges on top.
I would only be looking at around 5K and that roughly works out on a loan of about 7% ish.


Ade

[Deleted User]

A lot depends on the fee that the car salesman will charge you. It's normally around 3%.

grumbler

If the dealer charges, it's worth checking money transfer cards.

MBNA Platinum currently offers 0% for 24 months with 1.89% fee.

JimmyTheWig

Have you got cards with decent credit limits already?
If not you may struggle to get a £5k limit.

But if you can, pretty much any fee the dealer charges is better than paying 7% interest.

adi750crow

Cheers for the reply, and can see what the dealer may charge, but I'm also trying to find out if the money I put on the card will incur any extra's..... Does zero percent over 27 months really mean that ?

Paully232000

adi750crow wrote: »

Cheers for the reply, and can see what the dealer may charge, but I'm also trying to find out if the money I put on the card will incur any extra's..... Does zero percent over 27 months really mean that ?

Yes, apart from any fee to transfer the money you will not pay anything apart from the balance for 27 months. So long as you pay at least the minimum payment each month, dont spend anything else on the card, and dont break any of the T&Cs.

adi750crow

Cheers for that ... now to see if I can get one !!

dresdendave

What is your plan for paying off the balance at the end of the 27 months?


Many people get caught out having vague plans to save the required amount before the 0% expires but then holidays, Christmas, unexpected repairs occur and suddenly they are desperately hunting for a new 0% deal to transfer their balance.


If you go down this route be disciplined and have a monthly transfer to a savings account of (approx.) the card balance divided by 27. Treat it as loan repayment that must be paid each and every month.

adi750crow

The wife's already sorted this out, we do have the cash to purchase the car outright, but I can't see the point of using my capital when I can use a banks for not much more...

JimmyTheWig

Have a read about Stoozing, OP. That's basically what you're planning on doing.
Some of us do it quite frequently