Credit Card to buy a car?

leavereality

So early next year thinking about buying a Car, I dont do loans for PCP, I like to buy the car out right.

So I just thought, you can get 24month intrest free cards and could I put part of the value of my next car on that credit card, I usally get £3000 in credit,  this would allow me to keep £3,000 in my saving account and contiue to earn intrest until the free intrest rate runs out in 24months.

So basiclly do car dealer / credit card firms allow you to do this?

Cheers

DullGreyGuy

Credit card companies yes - though obv you'll be making the 23 monthly payments so not all £3,000 sits there for 24 months.

Dealerships no - as credit cards charge a percentage fee most will only allow you pay a deposit or a relatively small amount via CC and require the rest to be settled by another method.

If you are doing this for the interest rate aspect rather than the S75 protection you could look at a money transfer card with a 0% offer but most will have a fee attached so will eat into your interest profits.

martinbainbridge1975

you may find some dealers limit the amount they will accept on a credit cards, partly linked to section 75 rights as it can complicate matters concerning statutory rights - how I do not know.

when I got my current car I had a £3000 deposit, £500 was paid by credit card to hold the car, however the collection of the car was delayed due to time taken for a cheque funds to clear - the dealer would not accept a credit card for the other £2500 

pramsay13

We bought our last car using a combination of 2 credit cards so some dealers will accept them fine. 

MrFrugalFever

It is unlikely that the dealer will accept the full amount on CC due to transactional fees but I would imagine some of it yes.

DullGreyGuy

martinbainbridge1975 said:

you may find some dealers limit the amount they will accept on a credit cards, partly linked to section 75 rights as it can complicate matters concerning statutory rights - how I do not know

No, the dealer will like you having S75 rights as it means if you have a problem you go after your bank rather than them and it comes from your bank's pocket but you only need to spend £0.01 on the credit card to get those rights as long as the item is over £100 (and under the upper limit).

Once you've paid your minimum payment the rest to them is just fees. 

Now if you want to be cynical then not accepting a CC for the rest may enable them to sell you finance for the rest for which they'll receive appropriate commission. 

Richard1212

We have used a debit card a few times or a credit card sometimes to buy a brand new car outright from main dealers----it inevitably means a phone call from debit/credit card holder to bank or credit card admin, followed by the latter talking to the car sales rep or manager ; but it hasn't failed and is completed in my own experience within 5 or 10 minutes.
Enjoy your new car and your New Year.

Nebulous2

I've found dealers happy to take a £500 deposit by credit card, but not any more than that. 

martinbainbridge1975

DullGreyGuy said:

martinbainbridge1975 said:

you may find some dealers limit the amount they will accept on a credit cards, partly linked to section 75 rights as it can complicate matters concerning statutory rights - how I do not know

No, the dealer will like you having S75 rights as it means if you have a problem you go after your bank rather than them and it comes from your bank's pocket but you only need to spend £0.01 on the credit card to get those rights as long as the item is over £100 (and under the upper limit).

Once you've paid your minimum payment the rest to them is just fees. 

Now if you want to be cynical then not accepting a CC for the rest may enable them to sell you finance for the rest for which they'll receive appropriate commission. 

they got diddly squat commission from me as the dealer finance rate was a rip off, I would never use dealer finance on a used car these days as the rates have rocketed.

as suggested above will likely have been merchant fees on the card transactions

leavereality

thanks for the feedback. Guess it worth me applying for one of them credit cards then. I buy/shopping in March, where delears are usally sweating to get rid of the older stock because new numberplates come in.

stehouk

I'm looking for a car now, i've got the RBS 0% 22mth no fee balance transfer card and i've got a Halifax money transfer offer of  no fee but 12mths at 5.9%, i intend to transfer the money to my bank account and then balance transfer it to RBS, i am hoping to only have to pay the interest for a day.