Buying a Car on Credit Card?

bery_451

eskbanker said:

bery_451 said:
Okay possible for me to negotiate on the sales price to try to lower it from lets say £5k to £4750 with the salesman then use the £250 remaining to pay for the credit card transaction fee?

Usually have much in % are credit card transactions fees that the trade merchant has to pay anyway?

You can always try negotiating, but just to be clear, you shouldn't ever be asked to pay a credit card fee as it's unlawful for them to pass this on - fees paid will vary widely, but would probably be in 1-2% territory.

Do you know if the fees are cheaper for Mastercard or Visa?

bery_451

Brie said:

You may well be able to find a cheap second hand car if you know what you want and are prepared to approach a dealer.  They often get older cars that they normally wouldn't sell on themselves but would put to auction or sell at a reduced amount to a nearby second hand car shop.  They might be willing to sell directly to you for something like the trade in price they've given the customer buying a new vehicle.  

Have a look too at the card's offers in case there's a 0% money transfer available.  Many places will be happy to take a deposit by card (maybe £100 or more.) but want the rest by bank transfer.  If there's a 0% money transfer available on the card you could do the deposit by card, pay the rest by bank transfer and then do a money transfer to the bank account for whatever amount is required - but only up to (possibly) 95% of your credit balance.  

Don't forget that whatever method you end up using you have to have a way to clear the balance off the card by the end of the 12 months or you'll be paying a very high interest rate.  

Hi yes can you point me in the right direction of where I can find those cheap second hand cars? What are second hand car shops, you mean normal used car dealers? Or where can I buy cars at trade-in prices excluding auctions?

If I do that money transfer payment you mentioned or pay the full price using my credit card then will I destroy my credit rating/report/score by doing this if I use 95-100% of my credit limit?

Desmond_Hume

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

bery_451

Desmond_Hume said:

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

Who has £5k liquidity cash burning in their pockets nowadays?

Loans means I have to pay interest, high interest because Rishi says high interest rates fights Inflation, yeah right lol, the interest rate has to be over the true inflation rate in order to fight it & bring inflation down.

Anyone that says inflation is 5% I will throw cold water on their faces lol.

DullGreyGuy

bery_451 said:

eskbanker said:

bery_451 said:
Okay possible for me to negotiate on the sales price to try to lower it from lets say £5k to £4750 with the salesman then use the £250 remaining to pay for the credit card transaction fee?

Usually have much in % are credit card transactions fees that the trade merchant has to pay anyway?

You can always try negotiating, but just to be clear, you shouldn't ever be asked to pay a credit card fee as it's unlawful for them to pass this on - fees paid will vary widely, but would probably be in 1-2% territory.

Do you know if the fees are cheaper for Mastercard or Visa?

Than what? Each other? For basic cards they tend to be the same. Only if you have World/ Infinite cards do small differences happen.

The EU capped the bulk of the charges for cross branded cards which in the UK only left AmEx own branded cards exempt from them but inevitably caused them to drop too. Post Brexit we converted the EU rules to UK

Even someone doing £100 a year of card sales can now get a 1.75% fee on all cards inc AmEx own brands via Zettle. With any decent volume of sales, inc our tiny local Indian restaurant, are paying under 1% inc AmEx but that tends to be 0.2%/ 20 BPS higher

born_again

bery_451 said:

Brie said:

You may well be able to find a cheap second hand car if you know what you want and are prepared to approach a dealer.  They often get older cars that they normally wouldn't sell on themselves but would put to auction or sell at a reduced amount to a nearby second hand car shop.  They might be willing to sell directly to you for something like the trade in price they've given the customer buying a new vehicle.  

Have a look too at the card's offers in case there's a 0% money transfer available.  Many places will be happy to take a deposit by card (maybe £100 or more.) but want the rest by bank transfer.  If there's a 0% money transfer available on the card you could do the deposit by card, pay the rest by bank transfer and then do a money transfer to the bank account for whatever amount is required - but only up to (possibly) 95% of your credit balance.  

Don't forget that whatever method you end up using you have to have a way to clear the balance off the card by the end of the 12 months or you'll be paying a very high interest rate.  

Hi yes can you point me in the right direction of where I can find those cheap second hand cars? What are second hand car shops, you mean normal used car dealers? Or where can I buy cars at trade-in prices excluding auctions?

If I do that money transfer payment you mentioned or pay the full price using my credit card then will I destroy my credit rating/report/score by doing this if I use 95-100% of my credit limit?

Forget about your score it means nothing to lenders.... They never see it. History is what counts.

Best place for a cheap car is from it's previous owner. Any used car dealer is wanting to make a profit.

So get looking on Autotrader.
Other social media sites are littered with fake adds.

Nasqueron

bery_451 said:

cymruchris said:

And in addition to the above - many used car prices are not as high as they were, they've fallen on many vehicle types, but there are still sellers selling at Covid prices. So do your research in detail before committing to purchasing a car. Prices are a bit all over the place in many respects.

Believe me a sibling of mine bought a car back in 2017 and I see the similar car with similar mileage going on autotrader trade price now for the same price that he paid back in 2017. Inflation has made used car prices at least doubled like it did with food groceries. Yeah blame it on Russia and say Putin took control of Autotrader hence the higher used car prices lol.

I remember pre-covid bangers use to go for like £250-£500 for a banger. Now they going at least £1000 for a banger. Hence why I said at the beginning its gonna be tough to find a good used car for £5k nowadays. If we were in a Recession then used car prices would come down but the Bank of England saying were not in a recession, were in a soft landing which makes it more confusing lol.

Only the Electric EV car market has crashed because car dealers are not accepting EV's for trade-in for numerous reasons!

Okay where can I find used cars at pre-covid prices excluding car auctions?

There is an element of ULEZ expansion bumping prices too for any compatible old banger as it's more desirable even if you are away from London. Covid hit supply chains too so older cars that run ok are more desirable than a car you have to repair but cannot get bits for

MattMattMattUK

bery_451 said:

Desmond_Hume said:

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

Who has £5k liquidity cash burning in their pockets nowadays?

Very few people have it in cash or in their pocket because most people do not use cash, especially for large transactions, plenty of people have that amount or more in savings.

bery_451 said:

Loans means I have to pay interest, high interest because Rishi says high interest rates fights Inflation, yeah right lol, the interest rate has to be over the true inflation rate in order to fight it & bring inflation down.

That is how loans work. Interest rates do reduce inflation, but it is more complicated than just a simplistic switch. 

bery_451 said:

Anyone that says inflation is 5% I will throw cold water on their faces lol.

Inflation is lower than 5%, it is 3.2%. Resulting to physical violence because you do not understand facts is never a good idea. 

bery_451 said:
Believe me a sibling of mine bought a car back in 2017 and I see the similar car with similar mileage going on autotrader trade price now for the same price that he paid back in 2017. Inflation has made used car prices at least doubled like it did with food groceries. 

Used car prices have not doubled, neither has food. Food is around 30% more expensive depending on the food chosen. 

bery_451 said:
Yeah blame it on Russia and say Putin took control of Autotrader hence the higher used car prices lol.

Autotrader to not set prices, the people selling via Autotrader do. 

Nasqueron

MattMattMattUK said:

bery_451 said:

Desmond_Hume said:

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

Who has £5k liquidity cash burning in their pockets nowadays?

Very few people have it in cash or in their pocket because most people do not use cash, especially for large transactions, plenty of people have that amount or more in savings.

bery_451 said:

Loans means I have to pay interest, high interest because Rishi says high interest rates fights Inflation, yeah right lol, the interest rate has to be over the true inflation rate in order to fight it & bring inflation down.

That is how loans work. Interest rates do reduce inflation, but it is more complicated than just a simplistic switch. 

bery_451 said:

Anyone that says inflation is 5% I will throw cold water on their faces lol.

Inflation is lower than 5%, it is 3.2%. Resulting to physical violence because you do not understand facts is never a good idea. 

bery_451 said:
Believe me a sibling of mine bought a car back in 2017 and I see the similar car with similar mileage going on autotrader trade price now for the same price that he paid back in 2017. Inflation has made used car prices at least doubled like it did with food groceries. 

Used car prices have not doubled, neither has food. Food is around 30% more expensive depending on the food chosen. 

bery_451 said:
Yeah blame it on Russia and say Putin took control of Autotrader hence the higher used car prices lol.

Autotrader to not set prices, the people selling via Autotrader do. 

The official (CPI) inflation rate is 3.2% yeah but it's obviously not that low in reality, the CPIH at the least is 3.8% and Core CPIH (excluding energy, food, alcohol and tobacco) is 4.7% with Core CPI up 4.2%. Even if it's slowing, it's still just less of an increase and as you say, up 25-30% over the last 2 years (Jan 22-24)

MEM62

bery_451 said:

Desmond_Hume said:

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

Who has £5k liquidity cash burning in their pockets nowadays?

Many people.  It comes from saving.  

bery_451 said:

Desmond_Hume said:

The questions being asked here are suggesting to me you should just pay cash/bank transfer/get a loan. You’re way over complicating this process. 

Loans means I have to pay interest, high interest because Rishi says high interest rates fights Inflation, yeah right lol, the interest rate has to be over the true inflation rate in order to fight it & bring inflation down.

I would argue that interest rates are not high.  They are higher than they have been for sixteen years or so but that is because for those sixteen years they were artificially low.  What you are seeing now is a return to a more historical norm.  Either way, the point is that borrowing to buy a car is not the most sensible way of purchasing it.  Paying with savings is the way to go as then you only have to deal with the cost of depreciation and not depreciation plus  interest.