Buying a Car on Credit Card?

bery_451

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. 

Are you Rishi Sunak undercover on MSE ?

Those are well versed political vote for me answers 

bery_451

born_again said:

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.

Okay will doing that affect how my credit history will look then? If so then you saying there's a actual human that takes time by reading your credit history off a screen or printed papers before making a decision on whether your eligible for credit? Or is there like a Algorithm or Ai bot that makes the decisions based on your credit score? How do you explain potential borrowers getting instant decisions on their screens straight away after they submitting their credit applications online? I remember applying for credit online way back in 2006 & got a instant decision on screen straight away indicating its impossible for a human to give that decision manually. Remember this was way back in 2006 & now its 2024 lol. 

What if somebody who is very rich who does all their transactions using their debit card because they don't need 'credit' because they already have the cash liquidity, this rich person will have no credit history so if this rich person applies for a credit card then he/she be declined? Does living in a certain affluent postcodes improve your credit history/report? For rich people who do get credit for the purpose of offsetting their taxes because credit debt can be shown as liabilities on their balance sheets to fool the taxman then how do you explain rich people getting credit cards with like £50k-£100k credit limits on them? Postcodes have nothing to do with higher credit limits?

I can look for private sellers on autotrader but do they take credit cards though?

Gandalf644

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?

So, I take it from your response above, you do not have the £5k stashed somewhere to pay off the card before interest becomes payable. Plus some of your other responses are starting to ring alarm bells.

Even at zero percent, splurging £5k on the card all at once, means you will have to make average payments (or save to pay off later ((stooze)) -  minus the monthly minimum payment) circa £416 per month to avoid paying interest.  

You really do need to clear the card at the end of 12 months because:

 

1.        You cannot guarantee you will be able to get a further 0% card to ‘balance transfer’ any outstanding balance to.

2.        Any interest payable after 12 months may dwarf what you would pay if you had taken out a personal loan to buy the vehicle.

 

Notwithstanding the difficulty in finding a car dealer who will accept £5k on a credit card in the ‘cheap runabout’ market, If you cannot guarantee to pay off the balance within the interest free period, have you ‘priced up’ a personal loan for the whole car vs what you will pay in interest on the credit card after the 0% offer ends?  Credit card APR’s are generally much higher than personal loans APR’s (For example Natwest are offering me £5K at 6.9%). You do need to do the sums.

Also, what savings/cash have you got for repairs etc? A car costing £5K will be old and/or have very high mileage. In such cases repairs should be expected commensurate with the age/price of the vehicle. You may be lucky to get a 3 month or occasionally 6 month warranty from a dealer – but do prepare for the worst as even warranties can be limited in what they cover.  

Section 75 cover can be quite limited in these sorts of cases and can be subjective. It is not a warranty or guarantee of fault free running.  

Finally, have you ‘costed in’ things such as insurance, fuel, consumables (tyres etc), MOT  and yes, repairs whilst also paying off the card?

MattMattMattUK

bery_451 said:

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. 

Are you Rishi Sunak undercover on MSE ?

I cannot stand the man and do not think that any of the current Conservative Party (or most of Labour) are fit for office. 

bery_451 said:

Those are well versed political vote for me answers 

They are factual answers, in contrast to your statements which were not factually correct. 

Nasqueron

bery_451 said:

born_again said:

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.

Okay will doing that affect how my credit history will look then? If so then you saying there's a actual human that takes time by reading your credit history off a screen or printed papers before making a decision on whether your eligible for credit? Or is there like a Algorithm or Ai bot that makes the decisions based on your credit score? How do you explain potential borrowers getting instant decisions on their screens straight away after they submitting their credit applications online? I remember applying for credit online way back in 2006 & got a instant decision on screen straight away indicating its impossible for a human to give that decision manually. Remember this was way back in 2006 & now its 2024 lol. 

What if somebody who is very rich who does all their transactions using their debit card because they don't need 'credit' because they already have the cash liquidity, this rich person will have no credit history so if this rich person applies for a credit card then he/she be declined? Does living in a certain affluent postcodes improve your credit history/report? For rich people who do get credit for the purpose of offsetting their taxes because credit debt can be shown as liabilities on their balance sheets to fool the taxman then how do you explain rich people getting credit cards with like £50k-£100k credit limits on them? Postcodes have nothing to do with higher credit limits?

I can look for private sellers on autotrader but do they take credit cards though?

Lenders ask their preferred CRA for the data on your file and run it through their systems automatically, provided there is nothing they don't like on there like say they auto reject anyone with a default, then yeah they can make decisions pretty much immediately. They don't look at the credit score though, just the data. They have their own scoring system based on income and data on your file.

A truly rich person might struggle applying for credit yes based on lack of credit history but then again they'd be more likely to have private banking or wealth managers etc or just be able to show their income and avoid that

Credit rating is tied to a person not an address. A bankrupt could live in a wealthy area and get less credit than a well off person in an old council house (e.g. Bob Crow). If you move, your credit history follows, the place you live has no impact. Rich people cannot offset taxes by having credit card debts any more than you can. People with 50k-100k credit limits are very wealthy and can show they have the funds to back the card, though really the people you are talking about effectively have no limit on their cards as they use premium cards only available to people with high net worth

Auto trader is a middle man, the person selling wouldn't take credit cards

CliveOfIndia

bery_451 said:

If so then you saying there's a actual human that takes time by reading your credit history off a screen or printed papers before making a decision on whether your eligible for credit?

No.  The lender pays a fee to whichever CRA they use.  The CRA sends them a feed with all the data they hold on you.  The lender feeds that into their scoring algorithm.  The computer spits out "Accept" or "Decline".  Since it's all computerised, it takes seconds for the whole process to complete.

bery_451 said:

Or is there like a Algorithm or Ai bot that makes the decisions based on your credit score?

As above, all the algorithm does is churn your data through its horribly complicated routines and spits out an answer.  Your score means nothing.

OK, not strictly true.  The score dished out by the CRAs means nothing.  The lender's own algorithm will generate a score - an internal score that is seen only by the lender.  Since each lender has very different lending criteria, risk appetites and target customer profiles, there cannot possibly be a one-size-fits-all score.  That's one reason why the score generated by the CRA is meaningless - they do not know what a particular lender's algorithms look like, any more than you or I do.

bery_451 said:

What if somebody who is very rich who does all their transactions using their debit card because they don't need 'credit' because they already have the cash liquidity, this rich person will have no credit history so if this rich person applies for a credit card then he/she be declined?

Very possibly, yes they would be declined for credit.  Unless they talk very nicely to their private wealth manager at Coutts

bery_451 said:

Does living in a certain affluent postcodes improve your credit history/report?

Absolutely not - your address is not considered as part of the decision-making process.  Well, only inasmuch as a lender likes to see a relatively stable address history (i.e. if you move house every 6 months for several years, this may make them jittery).  But whether you live in a slum or millionaires row makes no difference to whether you're likely to be accepted or not - the only data that's used is your income and your credit history.

bery_451 said:

I can look for private sellers on autotrader but do they take credit cards though?

No, a private individual will not take payment by credit card - do you have the facility to take card payments?  I mean you personally, not if you happen to run a corner shop or small business that takes cards.

In fact, if a supposedly private seller did accept cards, there's a good chance they're actually a trader masquerading as a private seller, which would ring very loud alarm bells.

bery_451

Nasqueron said:

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

You mean bumping prices for petrol cars cause most petrol cars are ULEZ compatible. Diesel cars under 2015 reg plates are not ULEZ compatible yet because of this high Inflation problem our £gbp currency is facing even these non-ulez diesel cars have gone up in price too.
. 
Yeah right covid hit used cars supply chains hence their price increases because we import used cars on boats  Stop hiding the real problem which is Inflation currency devaluation like what Rishi Sunak does to fool us to vote for him to get him elected for the 1st time. The fool has caused the high inflation mess in the 1st place especially with his furlough schemes.

born_again

bery_451 said:

born_again said:

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.

Okay will doing that affect how my credit history will look then? If so then you saying there's a actual human that takes time by reading your credit history off a screen or printed papers before making a decision on whether your eligible for credit? Or is there like a Algorithm or Ai bot that makes the decisions based on your credit score? 

I can look for private sellers on autotrader but do they take credit cards though?

Credit history is not missing payments. Nothing to do with actually borrowing.
Any decisions are made in the 1st instance by systems. Systems can throw them out for physical checks.

Private sellers will not take credit cards, as they have no facility to do so.

bery_451

Nasqueron said:

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)

Okay so from what you said of an increase 25-30%, what was the official CPI inflation rate 2 years ago? Was CPI 25-30% officially 2 years ago? Then from there ask yourself will you believe cooked up CPI inflation rate numbers to keep certain politicians & central bankers in power or to get votes?

All that money Rishi is spending on Wars abroad, ask yourself is that inflationary or disinflationary & his comment to increase GDP to justify the massive debt this country has is crazy. Us getting taxed does not add to the national debt amount, what adds to the debt? Its the bank of England and their money printers printing money out of thin air then loaning it to the rishi & his government to spend on proxy wars which is the very definition of Inflation!

Phoenix72

Somewhat deviated from the original question?