Best option for new car.

Aran76

eye4abargain2010 said:

A lot of things to consider if looking for the cheapest way. Savings, poor interest rates on savings etc etc.  For my last 2 car purchases I have took out a new credit car a few weeks before deciding on what car to purchase. Research car and funding first.  I have used some savings (low interest rates), part exchange to get the amount required close to the max limit on card (-£500).  Paid the balance with the credit card and got the extra purchase protection and 25 months interest free with NO FEE. Set up the direct debit for the minimum and put the card in the drawer until about 6 months before your free period runs out and keep an eye on the BALANCE TRANSFER deals with NIL fee, such as Sanatander at this time.  All subject to personal circumstances and ability to manage the debt you can shake your own hand instead of the bank manager offering you a loan or indeed the car salesman at higher rates.

The OP will have a job on their hands trying to get a car dealer to accept £10,400 on a credit card.

vacheron

Aran76 said:

eye4abargain2010 said:

A lot of things to consider if looking for the cheapest way. Savings, poor interest rates on savings etc etc.  For my last 2 car purchases I have took out a new credit car a few weeks before deciding on what car to purchase. Research car and funding first.  I have used some savings (low interest rates), part exchange to get the amount required close to the max limit on card (-£500).  Paid the balance with the credit card and got the extra purchase protection and 25 months interest free with NO FEE. Set up the direct debit for the minimum and put the card in the drawer until about 6 months before your free period runs out and keep an eye on the BALANCE TRANSFER deals with NIL fee, such as Sanatander at this time.  All subject to personal circumstances and ability to manage the debt you can shake your own hand instead of the bank manager offering you a loan or indeed the car salesman at higher rates.

The OP will have a job on their hands trying to get a car dealer to accept £10,400 on a credit card.

I've managed it before. Policy can vary hugely depending on the dealer and if you are dealing with a large chain, franchise or a small independent.

My last car (second hand, main dealer) was split over 3 different cards.
 
Plus, even if they charged you 3% to cover their card processing costs, if you have a 30month 0% CC deal, that is effectively just over 1% per year, still far better than most other finance optons.

macman

You can't surcharge for using a credit card, not since 2018. The dealer can of course refuse to accept a card, but they can't charge more than they would for cash of other finance.

foxy-stoat

macman said:

You can't surcharge for using a credit card, not since 2018. The dealer can of course refuse to accept a card, but they can't charge more than they would for cash of other finance.

Maybe thats why I see a lot of "admin fees" added to the sale price - they may choose to discount the "fee" for cash or keep it for the folk who want to pay by credit card.  

As for the OP's dilemma - I do not think they will be happy to drive a car worth £1600 and owe it out right when they can just get a massive loan - why not.

vacheron

macman said:

You can't surcharge for using a credit card, not since 2018. The dealer can of course refuse to accept a card, but they can't charge more than they would for cash of other finance.

Yes, I knew that would be the next comment, but there is nothing wrong with offering a dealer £10,300 for a £10,000 car and then paying by card anyway. We are talking about a negotiated price car dealer purchase here, not a supermarket shop.

CocoM2020

But who is to say he could get a credit card with that limit (I know he may already have one), especially with a 0% rate as I thought companies were tightening things. Plus he still has a £3400 loan as well. 

foxy-stoat

CocoM2020 said:

But who is to say he could get a credit card with that limit (I know he may already have one), especially with a 0% rate as I thought companies were tightening things. Plus he still has a £3400 loan as well. 

When they sell the £7600 car they bought a couple of years ago they will easily get £5,000 - they will use that to clear the loan.  Hopefully the loan on their credit file (now cleared) wont hinder the next load of finance for over 10K.

Niv

MinuteNoodles said:

I've a better idea. 
Sell the car, pay off the loan, use the £1600 left over to buy a car outright. Save what you would have been making in payments in a savings account, in 3-4 years but a much newer car in cash.

Nice in theory, doesn't work for all in practice. I am not allowed a car older than 7 years or over 100k. Not a lot matches that for £1600.

foxy-stoat

Niv said:

MinuteNoodles said:

I've a better idea. 
Sell the car, pay off the loan, use the £1600 left over to buy a car outright. Save what you would have been making in payments in a savings account, in 3-4 years but a much newer car in cash.

Nice in theory, doesn't work for all in practice. I am not allowed a car older than 7 years or over 100k. Not a lot matches that for £1600.

Agreed, still plenty of cars for less than half the OP's budget.
My work car policy is 10 years and 100K, looking at MG6's next year - less than 5K for sub 50K 5 year old car.  Probably a poop car but better than my current daily Corsa.

Niv

foxy-stoat said:

Niv said:

MinuteNoodles said:

I've a better idea. 
Sell the car, pay off the loan, use the £1600 left over to buy a car outright. Save what you would have been making in payments in a savings account, in 3-4 years but a much newer car in cash.

Nice in theory, doesn't work for all in practice. I am not allowed a car older than 7 years or over 100k. Not a lot matches that for £1600.

Agreed, still plenty of cars for less than half the OP's budget.
My work car policy is 10 years and 100K, looking at MG6's next year - less than 5K for sub 50K 5 year old car.  Probably a poop car but better than my current daily Corsa.

I didn't and don't dispute that..