Best way to buy a car - loan or credit card?

colette01!

The car costs £16000. We don't have savings. Should we get the dealer credit, apply for a loan, and could we pay either off using interest free credit cards quickly and just transfer as the time period for interest free ends. 

CliveOfIndia

You can't use a credit card to pay off a loan.  Odds on the loan provider wouldn't accept payment by credit card.  But even if they did, it would be treated as a cash advance by the card issuer, so you'd be charged a cash advance fee, also it wouldn't qualify for the 0% promotional rate.

colette01! said:

just transfer as the time period for interest free ends. 

Even aside from my first comment, that's a dangerous gamble anyway - there's no guarantee you'd be accepted for another BT card, or one with a high enough limit, to transfer any remaining balance.

£16000 is a lot to be spending - you could get a very decent car for a lot less than that.  But if you're happy with using credit, then it's just a case of working out whether the dealer credit or a standard personal loan from a bank would be cheaper overall.

colette01!

Thanks Clive, that's very helpful. Especially the comment about getting a cheaper car. You can loose perspective can't you.

MEM62

colette01! said:

The car costs £16000. We don't have savings. 

I would question whether it is wise to be buying a £16K car when you have no money.  If you cannot afford to save then you cannot afford finance repayments.