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

leonj

xsy77 said:

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?

Not sure but loads of dealers accept credit cards anyway it's more potential customers for them

Grumpy_chap

xsy77 said:

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?

Getting a CC that offers 19k from the outset is not easy.

Many motor traders will not accept £19k on CC.  It sounds like you are looking at a car for £25k total (£6k deposit plus £19k on CC).  Is that correct?

S75 protection is covered even if you just put the deposit on the CC (which may open up more car options)

Have you actually chosen a specific car yet?

Yesterday, you were interested in a CHr with zero percent finance.  Now understood that your partner does not like that car.

Earlier today, you were still choosing between a Golf GTE or the Audi A3 e-tron:
https://forums.moneysavingexpert.com/discussion/6302458/1st-time-pcp-advice-please-toyota-c-hr/p3

xsy77

Grumpy_chap said:

xsy77 said:

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?

Getting a CC that offers 19k from the outset is not easy.

Many motor traders will not accept £19k on CC.  It sounds like you are looking at a car for £25k total (£6k deposit plus £19k on CC).  Is that correct?

S75 protection is covered even if you just put the deposit on the CC (which may open up more car options)

Have you actually chosen a specific car yet?

Yesterday, you were interested in a CHr with zero percent finance.  Now understood that your partner does not like that car.

Earlier today, you were still choosing between a Golf GTE or the Audi A3 e-tron:
https://forums.moneysavingexpert.com/discussion/6302458/1st-time-pcp-advice-please-toyota-c-hr/p3

Hi again mate,

Yes, quite the journey over the past few days

No no, the actual specifics are: Car cost - £17.5k. I was going to do £6k deposit on that C-HR, but thats out the window now.

I did the MBNA check (Thanks to @jay1804) and am now pre-approved for an 0% card with an estimated credit limit of £9k.

Double checked with the seller and they are happy to take that amount via Credit Card. They would not budge on the price at all, not even for a cash sale.

The deal I have found is for an 2017 A3 e-tron with all the extras that I want. ACC, Carplay, Heated Seats etc.

So my plan:

1. Apply for the MBNA 0% purchase card
2. Hope its approved and hope to get circa £9k credit
3. Pay deposit to reserve car
4. Go see car and check it out
5. Try and negotiate a little face to face
6. Put maximum amount on the MBNA card and balance on my debit card
8. Sell my existing car for as much as possible
8. Pay off lump of CC debt with the funds from the car sale
7. Pay the remaining CC debt off over the next 23x months

Is my logic/plan the best way forward? The only alternative I can think of is applying for a 2nd (and 3rd) CC and splitting the full amount across the cards. But I don't fancy that in all honesty. Unless someone tells me that's the better idea?

xsy77

jay1804 said:

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/

So should I apply to a different lender than MBNA in the hope that they offer me the same amount of Credit. i.e. Tesco bank to get the extra 2 months @ 0%?

jay1804

xsy77 said:

jay1804 said:

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/

So should I apply to a different lender than MBNA in the hope that they offer me the same amount of Credit. i.e. Tesco bank to get the extra 2 months @ 0%?

Yes, thats a good idea.

Grumpy_chap

xsy77 said:

Car cost - £17.5k. 
The deal I have found is for an 2017 A3 e-tron with all the extras that I want. ACC, Carplay, Heated Seats etc.

So my plan:

1. Apply for the MBNA 0% purchase card
2. Hope its approved and hope to get circa £9k credit
3. Pay deposit to reserve car
4. Go see car and check it out
5. Try and negotiate a little face to face
6. Put maximum amount on the MBNA card and balance on my debit card
8. Sell my existing car for as much as possible
8. Pay off lump of CC debt with the funds from the car sale
7. Pay the remaining CC debt off over the next 23x months

Is my logic/plan the best way forward? The only alternative I can think of is applying for a 2nd (and 3rd) CC and splitting the full amount across the cards. But I don't fancy that in all honesty. Unless someone tells me that's the better idea?

The plan seems logical and, in the current climate, the price seems fair (highly cautious and qualified comment given the massive number of variables in consideration for a 4yo car).

As for negotiation, you may be better trying to secure extras / mats, tank fuel, warranty than lower turnover...  It seems to be a seller's market right now.

I'd probably swap the order of 3 & 4 / 5 - see the car first and only then negotiate and then pay deposit.  You may stand a better chance of negotiating face-to-face, but that will be "nil chance" if you already paid the deposit.

If you have to wait for the CC to be approved before you can offer, you may lose the car in the mean-time.  Even if card approval is "instant" online, the actual card will take a while to come through.  There will always be another car come along, though you have selected a specific model and options which is only available in a limited number of examples.