Buying a car

ForestBluebells

Can you buy a used car on a credit card? Is it worth me getting a cashback card for this and cancelling after? I would need £17k which I checked and I should be 95% eligible for. Do I just say how much I need credit limit wise when I apply? 

pramsay13

Just check with the car dealer if they take a credit card, but some do.
As long as you have the funds to pay it off in full otherwise the interest payments will negate any cashback or rewards.
Do you already have credit card(s) with a decent limit as you're unlikely to get £17k limit first time around.

Hoenir

Given the charges. You may well find that the dealer won't accept credtit card as a form of payment. 

ForestBluebells

pramsay13 said:

Just check with the car dealer if they take a credit card, but some do.
As long as you have the funds to pay it off in full otherwise the interest payments will negate any cashback or rewards.
Do you already have credit card(s) with a decent limit as you're unlikely to get £17k limit first time around.

I have one with 7.5k limit but I don’t use it and I have another with a lower limit that I also don’t use. Just thought it might be possible to get some cash back buying the car if possible 

ForestBluebells

I forgot to add I have the cash. I was going to just buy it in cash but thought I’d see if I could earn a bit on the purchase 

fatbelly

Most dealers don't accept credit cards but some of the car supermarkets do.

If you are looking at an Amex card check that isn't excluded.

If they do accept your card then it makes sense to pay as much on the card as you can and get the added protection, but be aware cashback will be capped

400ixl

As said, most will not accept a credit card for more than the deposit.

You may find that you can get a better deal taking at least some in finance, although it may not be cash, but for example a free service pack. You then cancel the finance and pay it off in the 14 day cooling off period and keep the perk. May be a better kick back than cash back on a card and more dependable.

Grumpy_chap

400ixl said:

You may find that you can get a better deal taking at least some in finance,

The finance deals on used cars tend not to be as attractive as for new cars - still worth investigating this route.

CliveOfIndia

As others have said, it's very common for a car dealer to refuse a credit card for anything except a small deposit, due to the fees they get charged by the card issuer (expressed as a percentage of the transaction value).  Some dealers may accept full payment by card, but in my experience the vast majority won't.

ForestBluebells said:

Do I just say how much I need credit limit wise when I apply? 

Not usually - the limit they'll give you is decided by them once they've run all your data through their computer systems.  Some lenders may have an option on the application form to state how much you'd like, but even then it'll be ultimately decided by their internal systems.

born_again

ForestBluebells said:

Can you buy a used car on a credit card? Is it worth me getting a cashback card for this and cancelling after? I would need £17k which I checked and I should be 95% eligible for. Do I just say how much I need credit limit wise when I apply? 

Any dealer that takes anything like £17K on a CC is going to overcharging by a lot to cover the fee for you using the card.

This discussion crop up on a regular basis & the answers are always the same. 🤷‍♀️

SiliconChip

fatbelly said:

If they do accept your card then it makes sense to pay as much on the card as you can and get the added protection, but be aware cashback will be capped

Paying 1p on a credit card will get you exactly the same S75 protection as paying £17,000. If the dealer won't accept a credit card for a large amount then they may allow a deposit to be paid with one.