0% purchase or loan

Dtrewolla

Looking at buying a car weighing up finance option. Will put a deposit down but looking at how to cover £6k - £7k balance.
Do 0% purchase cards allow that amount or would a loan be better?

Jfk1988

Most dealers will not take a credit card for that amount. 

CliveOfIndia

Dtrewolla said:

Do 0% purchase cards allow that amount

The credit limit you're offered on any card will be based purely on the lender's assessment of you as an individual, taking into account factors such as your income and credit history.

But as above, the vast majority of car dealer will refuse to accept a credit card for anything other than a small deposit, due to the fees they get charged by the credit card issuer.

You could possibly look at a money transfer card, though there's usually a fee to pay for doing the transfer.  And you'd have to make absolutely sure you can clear the balance in full by the time the promotional rate expires. 

Dtrewolla

Dtrewolla said:

Looking at buying a car weighing up finance option. Will put a deposit down but looking at how to cover £6k - £7k balance.
Do 0% purchase cards allow that amount or would a loan be better?

Thanks - I hadn't thought about whether or not the dealer would even accept a credit card to that value, looking more like the loan option.

DullGreyGuy

Dtrewolla said:

Dtrewolla said:

Looking at buying a car weighing up finance option. Will put a deposit down but looking at how to cover £6k - £7k balance.
Do 0% purchase cards allow that amount or would a loan be better?

Thanks - I hadn't thought about whether or not the dealer would even accept a credit card to that value, looking more like the loan option.

Speak to the dealer in question... most dont, there has even been some reporting that their dealer accepts no cards at all, but there are also those saying they bought their £7k car on a card so clearly a minority do accept them. 

What limit the lender will give you depends on your personal circumstances, the highest single limit I've had on a new card was just under £30k but literally the same day another bank had offered a card with a £900 limit based on a soft search.

es5595

Be open with the dealer from the outset that £7k will be on a credit card and that’s non-negotiable as you simply can’t afford it otherwise. You’ll be surprised how many will take it rather than watch a sale walk away!