Credit card money transfer to buy car...

DeanMoney

Getting a new (used) car over the next few months and looking at ways of paying for it. I'm after some opinions on this method of paying because if done right I think it could save a lot of money.

I currently have a Barclaycard with no balance and a decent credit limit, almost enough to cover the cost of the car I have my eye on (the rest of the money would come from savings and selling current car). The offer I have from Barclaycard is 0% for 18 months with one off fee of 1.9%.

So, for example if the car was £10,000 I would have 18 months to take a chunk out of the £10,190 balance before moving remaining balance to another card via a balance transfer. I plan on paying £200/month so the balance would be £6590.

The same car on finance of 8% APR (also been quoted 13% APR) would be over £12k.

After the initial money transfer to get the car it will probably take 1 or 2 balance transfers down the line but potentially saving £1000's plus with the option of paying off more some months, surely this should be the way to go.

Am I missing anything?! Has anyone used this method when buying a car?

[Deleted User]

Yes, lots of people.

Only thing to be aware of is not getting the BTs you need later on.

DeanMoney

Totally agree. I have 3 credit cards, all manageable and they seem to send me decent offers every so often so as long as these don't dry up I think it would work out!

YorkshireBoy

DeanMoney wrote: »

I would have 18 months to take a chunk out of the £10,190 balance before moving remaining balance to another card via a balance transfer. I plan on paying £200/month so the balance would be £6590.

Am I missing anything?!

A cursory glance at your summary box perhaps?...where I think you'll find they want almost £230 a month at the outset (at 2.25% of the balance).

DeanMoney

Yea the £200 figure was an estimate!

YorkshireBoy

Is the Virgin money transfer card still available? If it is, it has a cheaper fee and a longer duration, meaning a 2nd/3rd BT may not be necessary...thereby saving you even more over the term.

DeanMoney

Yorkshire, doubt the credit limit would be as high as I need with it being a new card

YorkshireBoy

You have nothing to lose and everything to gain...don't you?

Even if the limit isn't as large as you'd like, some at a 1.69% fee for 30+ months (and 1% minimums) is better than all at 1.9% for only 18 months (and 2.25% minimums).

As well as the initial savings on the fee, you'd be in a much better position in 18 months time...with needing a much smaller limit on the next card.

It's not all about now!

Tony147

Also,be aware - read the terms and conditions. I used a Barclaycard Money Transfer and didn't realise "Until you repay your transferred balance in full, you will incur interest on all your purchases at your standard purchase rate. This applies even if you repay your monthly spend in full each month." meant that I will be charged interest on any purchases FROM THE DATE OF PURCHASE until fully paid. Even if you do as I did and pay off your purchases in full plus something off the transfer. It may not seem much, but it will depend on how much you spend on average. I'm thinking about just not using the card until I've paid off the transfer amount (before the 0% offer ends).

DeanMoney

Thanks Yorkshire, I see where you're coming from now although that would mean getting a 4th card! Something to consider.

Tony, the card I would be doing the money transfer from would solely be for the car, I wouldn't be using it for purchases or anything else, haven't actually had a balance on this card for a year or so.

Thanks for replies so far, seems to be the best way to purchase a car if done properly.