New Card needed for £19k purchase (Car) - Advice please

xsy77

Hi guys,

I have found a used car I would like to buy and thinking that sticking it (or at least some of it) on a CC would be a good shout.

I've read through the site, and other sites for the guidelines and I'm happy with everything so far.

What I'm not sure of is which card to apply for that might give me the higher limit. Is there anyway to see what amount of credit I might be offered without actually applying?

If not, can someone recommend a couple of 0% lenders that I should apply to? I assume its a bad idea to just apply for them all and choose the one who offers most?

daveyjp

Have you had confirmation the dealer will take a credit card for more than about £500?

jay1804

It depends if the dealer takes credit card payments and how much they will take, most won't take the full amount on card because of the fees.

A money transfer would be an easier option as you will have the cash in your bank.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

If you use the eligibility checker on MBNA's website they tell you your estimated credit limit, if you're likely to be accepted.

xsy77

daveyjp said:

Have you had confirmation the dealer will take a credit card for more than about £500?

I have yes

jay1804 said:

It depends if the dealer takes credit card payments and how much they will take, most won't take the full amount on card because of the fees.

A money transfer would be an easier option as you will have the cash in your bank.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

If you use the eligibility checker on MBNA's website they tell you your estimated credit limit, if you're likely to be accepted.

Thanks for this, I will have a looksy:)

Ebe_Scrooge

Firstly, it's highly unlikely that a dealer will accept the full amount on card, as per the previous poster.  Secondly, a £19k limit on a new card is a big ask, even if your credit history is top notch.  Thirdly, there's no way of knowing what limit you'll be offered until your application has been processed and accepted.

What's the reason for wanting to pay for it on card?  If you're looking for S75 protection, then as long as you pay any amount (it can even be 1p) on card, and the rest by bank transfer or whatever, then you'll be covered.  If you're looking to make use of a 0% purchase rate, then in all probability you'll be snookered by the fact the dealer will be unlikely to accept anything more than a small deposit on card.

jay1804

xsy77 said:

daveyjp said:

Have you had confirmation the dealer will take a credit card for more than about £500?

I have yes

jay1804 said:

It depends if the dealer takes credit card payments and how much they will take, most won't take the full amount on card because of the fees.

A money transfer would be an easier option as you will have the cash in your bank.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

If you use the eligibility checker on MBNA's website they tell you your estimated credit limit, if you're likely to be accepted.

Thanks for this, I will have a looksy:)

If they will take the full payment on card, then a purchase card would be better as there are no fees for you, if the card provider treats the transaction as a purchase.

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

Ebe_Scrooge

xsy77 said:

daveyjp said:

Have you had confirmation the dealer will take a credit card for more than about £500?

I have yes

Hmmm, the cynic in me says that the car is over-priced then.  If the dealer accepts 19 grand on card, he'll be paying some fairly hefty fees.  He's not allowed to pass those on to you directly ....... but I wonder if he'll "recoup" those fees my some other method?

Cynical, moi ???????  Lol

xsy77

Ebe_Scrooge said:

Firstly, it's highly unlikely that a dealer will accept the full amount on card, as per the previous poster.  Secondly, a £19k limit on a new card is a big ask, even if your credit history is top notch.  Thirdly, there's no way of knowing what limit you'll be offered until your application has been processed and accepted.

What's the reason for wanting to pay for it on card?  If you're looking for S75 protection, then as long as you pay any amount (it can even be 1p) on card, and the rest by bank transfer or whatever, then you'll be covered.  If you're looking to make use of a 0% purchase rate, then in all probability you'll be snookered by the fact the dealer will be unlikely to accept anything more than a small deposit on card.

The main reason is just basic money management. I have the savings to pay cash but would rather not snooker myself incase I need the cash for a new roof or something as similarly expensive in the near future. S75 is a nice bonus to have.

I was offered a 0% PCP deal on another used car but the Mrs didn't like it so we are here now

Ebe_Scrooge said:

xsy77 said:

daveyjp said:

Have you had confirmation the dealer will take a credit card for more than about £500?

I have yes

Hmmm, the cynic in me says that the car is over-priced then.  If the dealer accepts 19 grand on card, he'll be paying some fairly hefty fees.  He's not allowed to pass those on to you directly ....... but I wonder if he'll "recoup" those fees my some other method?

Cynical, moi ???????  Lol

I did ask the question about putting the difference (after a £6k deposit) on a CC and the dealer said yes. I asked about fees and they said none. I will ask again though!

Ebe_Scrooge

xsy77 said:

Hmmm, the cynic in me says that the car is over-priced then.  If the dealer accepts 19 grand on card, he'll be paying some fairly hefty fees.  He's not allowed to pass those on to you directly ....... but I wonder if he'll "recoup" those fees my some other method?

Cynical, moi ???????  Lol

I did ask the question about putting the difference (after a £6k deposit) on a CC and the dealer said yes. I asked about fees and they said none. I will ask again though!

Sorry, to clarify.  Any trader who accepts payment by credit card will be charged a fee by the credit card company - it's a percentage of the transaction value.  In the olden days, most car dealers would pass the fee on to you.  These days they're not allowed to by law - but they'll still be charged the fee by the card company.  It may be perfectly legitimate, and they're just willing to swallow the fee to get your business.  But that's the reason most traders simply refuse to accept credit cards for anything more than the deposit - they don't mind paying the fee on a few hundred quid, but for a few thousand it starts to become more significant.

xsy77

Ebe_Scrooge said:

xsy77 said:

Hmmm, the cynic in me says that the car is over-priced then.  If the dealer accepts 19 grand on card, he'll be paying some fairly hefty fees.  He's not allowed to pass those on to you directly ....... but I wonder if he'll "recoup" those fees my some other method?

Cynical, moi ???????  Lol

I did ask the question about putting the difference (after a £6k deposit) on a CC and the dealer said yes. I asked about fees and they said none. I will ask again though!

Sorry, to clarify.  Any trader who accepts payment by credit card will be charged a fee by the credit card company - it's a percentage of the transaction value.  In the olden days, most car dealers would pass the fee on to you.  These days they're not allowed to by law - but they'll still be charged the fee by the card company.  It may be perfectly legitimate, and they're just willing to swallow the fee to get your business.  But that's the reason most traders simply refuse to accept credit cards for anything more than the deposit - they don't mind paying the fee on a few hundred quid, but for a few thousand it starts to become more significant.

Yeh I get it. He didn't seem too fussed about the CC but maybe he just wants the sale. Should I try and haggle the price a bit more you think?

Ebe_Scrooge

xsy77 said:

Yeh I get it. He didn't seem too fussed about the CC but maybe he just wants the sale. Should I try and haggle the price a bit more you think?

Now that's a tricky one.  In theory, you could try asking what he'll knock off if you don't pay by card.  But then that's him effectively giving a discount for cash - which they're not allowed to do these days.  Just making an assumption here - it's possible that if the car was up for £19K, he would have been prepared to drop the price a bit for a cash sale.  But for a card sale, he'll stick to his guns and won't drop the price.  I know it's all just semantics, at the end of the day.  Bottom line, he knows how much profit he needs/wants to make from the sale.  Whichever way round that happens, he's unlikely to drop below the "net" sale price, if you see what I mean.