Loan / Credit card for car purchase

HazMan112

I wanted to see if I will be able to do the following

get a 0% interest on spending card, which give 20 or so odd months to repay off the credit. but also then do a balance transfer as Im hoping to clear the credit over the course of 36 months. 
I want to try and keep the interest to a minimum. Can this be done? if so, what do I need to watch out for? 

Alternatively, Tesco 6.1% loan for upto 15k.


If the first suggestion isnt viable, what would be another way of buying a car worth 14k with keeping interest to a minimum.

Thank you 

retiredbanker1

Always look at the dark side - What if Tesco don't want to lend to you at 6.1% or at any rate?
What happens if you do not manage to balance transfer before the amount is repaid?

Do you have any savings to fall back on?
Have you done a budget to see if this is affordable?

Brie

Not every car place will want you to pay off the entire car with a CC.  Then again you are unlikely to get a CC with £14k credit available.  So likely you may have to have one CC with maybe £4k on it (CC1) with a 0% purchase, another card (CC2) with another £5k 0% BT possible and then another (CC3) with the balance.    Put £4k on CC1, put as much as possible on CC3 and the BT the max from CC3 to CC2 and pay the balance on CC3.  

But this all then goes back to the issue of 3 different unrelated banks willing to risk you having that much total credit.  

Of course if they do please ensure that you have all the cards set up to pay at least the minimum monthly DD else your 0% deals will fail and CC3 will incur fines - all of which will rack up the cost of the borrowing much higher than the Tesco loan.

Grumpy_chap

HazMan112 said:

I wanted to see if I will be able to do the following

get a 0% interest on spending card, which give 20 or so odd months to repay off the credit. but also then do a balance transfer as Im hoping to clear the credit over the course of 36 months. 
I want to try and keep the interest to a minimum. Can this be done? if so, what do I need to watch out for? 

Alternatively, Tesco 6.1% loan for upto 15k.


If the first suggestion isnt viable, what would be another way of buying a car worth 14k with keeping interest to a minimum.

Thank you 

Why are you buying a car for £14k on credit?

Do you have a current car that works and can be kept, so you can save up the funds for a new car?

Can you have a lower cost car that will meet your needs?

HazMan112

retiredbanker1 said:

Always look at the dark side - What if Tesco don't want to lend to you at 6.1% or at any rate?
What happens if you do not manage to balance transfer before the amount is repaid?

Do you have any savings to fall back on?
Have you done a budget to see if this is affordable?

I do have savings saved up in case anything like that happens.
I have budgetted for this and its within my means.

I just wanted to know which was was best going forward.

HazMan112

Brie said:

Not every car place will want you to pay off the entire car with a CC.  Then again you are unlikely to get a CC with £14k credit available.  So likely you may have to have one CC with maybe £4k on it (CC1) with a 0% purchase, another card (CC2) with another £5k 0% BT possible and then another (CC3) with the balance.    Put £4k on CC1, put as much as possible on CC3 and the BT the max from CC3 to CC2 and pay the balance on CC3.  

But this all then goes back to the issue of 3 different unrelated banks willing to risk you having that much total credit.  

Of course if they do please ensure that you have all the cards set up to pay at least the minimum monthly DD else your 0% deals will fail and CC3 will incur fines - all of which will rack up the cost of the borrowing much higher than the Tesco loan.

Hey thanks for the detailed reply - prob not worth having 3 separate CC for this, the tesco 6.1 is probabily the best option.

Grumpy_chap said:

HazMan112 said:

I wanted to see if I will be able to do the following

get a 0% interest on spending card, which give 20 or so odd months to repay off the credit. but also then do a balance transfer as Im hoping to clear the credit over the course of 36 months. 
I want to try and keep the interest to a minimum. Can this be done? if so, what do I need to watch out for? 

Alternatively, Tesco 6.1% loan for upto 15k.


If the first suggestion isnt viable, what would be another way of buying a car worth 14k with keeping interest to a minimum.

Thank you 

Why are you buying a car for £14k on credit?

Do you have a current car that works and can be kept, so you can save up the funds for a new car?

Can you have a lower cost car that will meet your needs?

- Its just merely a question of whats the best of what doing things, thats all.
- I do have a current car, but its on its way out. Its still driveable but for how long Im unsure.
- The reason why this car is a better choice is due to my work demands, it gives good MPG for motorway runs and gives me good storage capacity.

Inbetweeners

You are not guaranteed to get the Tesco loan at 6.1% - what if they offeryou say 10.1%?