Using a CC to buy a car

uf353432

I have for some time played the credit game since previously working in finance and have used my mortgage, interest free's and g'teed CC's and of course A1 payment history to place myself in a position where I can use the credit to my advantage.

I have one query I wanted to clear up before making my next purchase.

I want to get a cheap interest loan to buy a car. I want to pay about 300 per month pay back and reckon the cheapest option is to get a CC make a transfer of the amount I need into my account (as appose to buying car on CC and dealer hitting me with 2.5% charge for using CC) pay as cash buyer (and perhaps get a better deal as a cash buyer) then pay same payment each month to clear the debt in the same time that I would have if it was a personal loan.

I reckon that it would take under 3 years to pay said debt (est 10k initial outlay) and am happy to move the CC debt to alternative cards each time the 0% runs out to keep the interest rate 0% (using Texaco 3.9% offer - or other - if 0% offers dry up).

I have applied for Egg since they offer 0% on balance tranfers and 0% on new purchases until 05/05. However if I transfer the money off the CC into my bank account - is this classed as a new purchase? (therefore getting my 0% until 05/05) or is this not included in their offer and I will need to apply for another 0% card to transfer onto as soon as the transfer goes through to my bank?

Its the last peice of the jigsaw on my cunning plan - so any feedback you offer will be greatly appreciated (especially if there is a loophole I have yet to think of!!)

Thanks in advance for your help, debs

Rafter

I'm pretty sure a balance transfer is a balance transfer whether it is to another card, a loan or a bank account or overdraft.

Never heard about egg treating different destinations differently.

Might be worth trying to find a car dealer who will at least accept the deposit on a credit card. That way if there is a problem with the car or dealer, you are covered under the consumer credit act if something goes wrong and can claim your deposit back from the card company.

Smitty

If you apply for an Egg card today and make a balance transfer to your current account, it counts as a balance transfer and you will receive it 'interest free' until 1st May 05

simonfr

I have used my credit card quite a few times to buy a car. Firstly its great cos you dont have to worry about cash n stuff and they can swipe it there and then. Its a purchase, so you dont get charged cash fee's than if say you transfered to a Current Account, and if you've got a cashback casd, you win again, as its generally a substantial purchase.

One word of warning, they will try to add the 2% or something of the purchase onto the price, tell them where to go and for them to absorb it. Ive never had to pay the 2% yet.

Simon