Buying a car

luckybert

I'm going to buy a car shortly and need to borrow about 10k.

Just thinking of the best way to do this and what my options are?

Should I use a credit card and keep switching the balance to 0% cards? Can this work?

Or just get a loan out with a low apr.

[Deleted User]

Do they accept cards?
Can you get a loan?
What rate is suggested by the eligibility checkers?
How long will it take you to repay?
How much do you save each month?

luckybert

I haven't seen a car I like yet so no idea if they take CC - is that not normal then - I haven't bought a car for a few years.

Yes I can get a loan

I think Sainsburys do 2.8% currently

I can repay over 2 or 3 years.

[Deleted User]

A lot won't- and those that do will generally have higher prices than those that don't.

2.8% is a representative rate. You need to consider what you might be offered.

Use an eligibility checker to get a better idea of hat options you may have.

luckybert

Thanks seems a loan is the best way, I'll only be paying back £400 ish over 3 years.

[Deleted User]

That depends on what rate you get.

If Sainsbury's offer you 15.9%, it'll be a lot more.

luckybert

15.9%? Why would they offer that rate?

foxy-stoat

1. Do the eligibility checker to see an indication if you will be accepted.

2. Apply for the lowest interest rate loan you can.

3. Start a new thread on here complaining that you didn't get offer the 2.9% rate.

4. Take out the loan they offer you and start a new thread when you cannot afford the repayments.

or

4. Take out a HP finance on an overpriced car and start a new thread when you cannot afford the repayments or if your involved in a total loss and do not have enough money to settle the finance.

5. Start a new thread a year after you buy the car due to a fault or 6 and ask how to reject it.

I think I have covered it all.

If you have a few months worth of savings @ £400 a month then I am sure you will be fine....if you have no savings at all you will probably be back.

Good lucks

[Deleted User]

luckybert wrote: »

15.9%? Why would they offer that rate?

Because rates are based on risk.

51% of successful applicants get the headline rate. The rest get something higher.

That's why I've been encouraging you to try an eligibility checker. You need to apply somewhere appropriate to your risk levels.

foxy-stoat

https://forums.moneysavingexpert.com/discussion/5948596/new-car-options

Stick with your £1500 focus - no need to borrow £10,000 when you have zero savings.

dresdendave

foxy-stoat wrote: »

https://forums.moneysavingexpert.com/discussion/5948596/new-car-options

Stick with your £1500 focus - no need to borrow £10,000 when you have zero savings.

Surely he can't have zero savings? If he can comfortably afford a £400 monthly loan repayment then wouldn't it mean this amount is building up in his account each month?