Credit card car purchase, when to apply?

SamJ35

This may be an obvious question, but I’m looking at buying a car on a credit card, using a 0% money transfer. I have been pre-approved with MBNA. 

I’m viewing the car tomorrow and have not yet applied for the card (in the event I don’t want/like the car and then have 9k credit card with a ticking promo offer).

what should be my best course of action? View the car, leave and then apply for the credit? I assume it will take a few days for the card to arrive to enable the money transfer? Or can I money transfer before having possession of the credit card?

thanks 

robber2

Your first task should be to confirm that the seller will take credit card payment. Most wont.

jsmith9

1. check the seller will take credit cards as said above

2. don't sign anything or pay a deposit as pre-approval is not the same as actually getting 9k of money transfer facilities. You can ask the seller to informally 'hold' the car for a few days but it is up to them if they will do this

3. apply for the money transfer and wait until it is certain and see what you actually get

4. then buy the car

dr_adidas01

SamJ35 said:

This may be an obvious question, but I’m looking at buying a car on a credit card, using a 0% money transfer. I have been pre-approved with MBNA. 

I’m viewing the car tomorrow and have not yet applied for the card (in the event I don’t want/like the car and then have 9k credit card with a ticking promo offer).

what should be my best course of action? View the car, leave and then apply for the credit? I assume it will take a few days for the card to arrive to enable the money transfer? Or can I money transfer before having possession of the credit card?

thanks 

Just because you have been pre-approved doesn't mean you are guaranteed to be accepted by MBNA after they complete a full credit search they may still decline you.

Your best option would be to see if you like the car, and if you do ask if you can leave a refundable deposit on the car.  That way you have secured the car then can apply for the card to see if you are accepted. Also be aware that if you are accepted that you can only transfer up to 93% of your credit limit to your bank account not the full credit limit.

You can only request a money transfer either via the app, online account management or via phone call, so you would have to wait until your account is set up to do it.

eskbanker

SamJ35 said:

I’m looking at buying a car on a credit card, using a 0% money transfer. 

robber2 said:

Your first task should be to confirm that the seller will take credit card payment. Most wont.

jsmith9 said:

1. check the seller will take credit cards as said above

If OP is using a money transfer (in the usual sense of the term), that presumably means they're planning to withdraw funds from the credit card to a bank account in order to purchase via a debit card or bank transfer, i.e. the seller won't be aware that there's a credit card involved at all.

robber2

eskbanker said:

If OP is using a money transfer (in the usual sense of the term), that presumably means they're planning to withdraw funds from the credit card to a bank account in order to purchase via a debit card or bank transfer, i.e. the seller won't be aware that there's a credit card involved at all.

Fair point but the OP did state "I’m looking at buying a car on a credit card". 

No doubt (s)he will be along shortly to clarify.

SamJ35

eskbanker said:

SamJ35 said:

I’m looking at buying a car on a credit card, using a 0% money transfer. 

robber2 said:

Your first task should be to confirm that the seller will take credit card payment. Most wont.

jsmith9 said:

1. check the seller will take credit cards as said above

If OP is using a money transfer (in the usual sense of the term), that presumably means they're planning to withdraw funds from the credit card to a bank account in order to purchase via a debit card or bank transfer, i.e. the seller won't be aware that there's a credit card involved at all.

Yes apologies for the confusion. It’s a money transfer credit card with MBNA. So a money transfer in the typical sense, and would pay the dealer via bank transfer. The dealer does accept credit cards but charges 3+% fee. The money transfer fee on the card is 2.99%

SamJ35

dr_adidas01 said:

SamJ35 said:

This may be an obvious question, but I’m looking at buying a car on a credit card, using a 0% money transfer. I have been pre-approved with MBNA. 

I’m viewing the car tomorrow and have not yet applied for the card (in the event I don’t want/like the car and then have 9k credit card with a ticking promo offer).

what should be my best course of action? View the car, leave and then apply for the credit? I assume it will take a few days for the card to arrive to enable the money transfer? Or can I money transfer before having possession of the credit card?

thanks 

Just because you have been pre-approved doesn't mean you are guaranteed to be accepted by MBNA after they complete a full credit search they may still decline you.

Your best option would be to see if you like the car, and if you do ask if you can leave a refundable deposit on the car.  That way you have secured the car then can apply for the card to see if you are accepted. Also be aware that if you are accepted that you can only transfer up to 93% of your credit limit to your bank account not the full credit limit.

You can only request a money transfer either via the app, online account management or via phone call, so you would have to wait until your account is set up to do it.

Thanks for this. And recognise I may not be accepted, hence viewing the car before and speaking to the dealer about going away to arrange finances/payment was my thought. I’ll ask about a refundable deposit so they remove it for sale. 

The 93% shouldn’t be a problem as it’s less than the credit limit they’ve said I’m eligible for; also recognising this is not guaranteed. 

I imagine it will be a few days after application that the account will be ready, but an open conversation with the dealer may help to sort that out. 

Ebe_Scrooge

SamJ35 said:

Yes apologies for the confusion. It’s a money transfer credit card with MBNA. So a money transfer in the typical sense, and would pay the dealer via bank transfer. The dealer does accept credit cards but charges 3+% fee. The money transfer fee on the card is 2.99%

A couple of points to add to what's already been said.

Firstly, if you're planning on going the money-transfer route, be aware that you won't be covered by S75 protection.  If you want the S75, then pay a small amount on credit card, and pay the balance in "cash".

Secondly, dealers are not allowed to impose a fee for paying by credit card - this was outlawed a couple of years ago.  If they're saying they will charge a credit card fee, I'd be questioning how legitimate they are in general.........  Unless they're meaning they charge a fee for business credit cards, which they are still allowed to do.

TadleyBaggie

SamJ35 said:

Yes apologies for the confusion. It’s a money transfer credit card with MBNA. So a money transfer in the typical sense, and would pay the dealer via bank transfer. The dealer does accept credit cards but charges 3+% fee. The money transfer fee on the card is 2.99%

If they are charging a 3% fee (banned) and forcing you to do a bank transfer (no protection), then you should seriously consider if you want to continue with this transaction.

SamJ35

Yeah all very good points about the credit card fee. Did not occur to me on the phone that it was a banned practice. They said that credit cards purchases under £1k did not have a fee but everything over did at about 3%. I’ll question it when I speak with them.

They are a reputable dealership locally; my parents have purchased from them before and were very happy with the car and the service (also paid by credit card but was pre-2018). 

Thanks everyone for the advice