Buying a car money transfer card ?

chriz1

I'm trying to work out the best and cheapest way to buy a Car which will be from a dealer. The car in question is £25k I have a an excellent credit rating and have been pre approved for a few loans with an intrest of 6.2%.

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.
Again I have been pre approved and it has an interest free period of 14 months .. then 24.9%! Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years)

Am I missing something ? Can this be done this way ? Or shall I continue to use a personal loan and just accept the extra I will pay in intrest ?

eskbanker

Have you had any indication that you'd be able to secure a 0% money transfer card with anywhere near a £25K credit limit?

TheSpectator

I'd be astonished if you got a £25k credit limit. Also, there is usually a fee for the transfer typically 3-4%.

flaneurs_lobster

It can be done

If you have a card with £25k credit limit

If the vendor will accept a credit card payment for £25k

You can find another card that will accept a £25k interest-free transfer.

Brie

I've used a card with a 0% purchase deal when buying a car but not all dealers will accept them and will want a cash transfer from your bank instead.  Or if you can get a 0% balance transfer you can buy the car with one CC and then transfer money from the other card to clear the first.

So if you can get one with a 0% money transfer you simply pay the dealer as per normal and then do a MT to your account.  Of course there is normally a fee for a MT, sometime 5%+ so you have to make sure that it is actually going to save you money.   And the 24.9% might bite you too if you can't/don't get a new CC when you need it.  

born_again

flaneurs_lobster said:

It can be done

If you have a card with £25k credit limit

If the vendor will accept a credit card payment for £25k

You can find another card that will accept a £25k interest-free transfer.

OP said

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.

Not paying dealer via CC 👍

flaneurs_lobster

born_again said:

flaneurs_lobster said:

It can be done

If you have a card with £25k credit limit

If the vendor will accept a credit card payment for £25k

You can find another card that will accept a £25k interest-free transfer.

OP said

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.

Not paying dealer via CC 👍

Ah, missed that bit. Do you need a, say, £25k credit limit to transfer £25k cash to your current account?

TheSpectator

flaneurs_lobster said:

born_again said:

flaneurs_lobster said:

It can be done

If you have a card with £25k credit limit

If the vendor will accept a credit card payment for £25k

You can find another card that will accept a £25k interest-free transfer.

OP said

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.

Not paying dealer via CC 👍

Ah, missed that bit. Do you need a, say, £25k credit limit to transfer £25k cash to your current account?

Probably more than that as they normally let you transfer only 90-95% of your credit limit.

CliveOfIndia

Yes, this will work fine in theory - as has been mentioned above, most dealers won't accept full payment by CC, but the MT option is fine.  Although, £25K is a pretty high limit for a credit card to offer, so you may find it's a non-starter anyway.

Remember there'll almost certainly be a fee for doing the MT, so factor that into your sums.

chriz1 said:

Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years

This is the riskiest part of the plan.  There's every chance that when the time comes, you find you can't get a BT card, or at least one with a large enough limit.  If that happens, you're a bit lumbered.  Even if you can do a BT, odds on there'll be another fee to pay.

So from this perspective, a standard personal loan may be a safer option.

chriz1 said:

Am I missing something ?

One obvious point is that, if you're relying on credit to be able to buy the car, a cheaper car may be a more sensible option.  But that has to be your choice, of course, it's not my place to tell you what you should and shouldn't spend your money on

Mark_d

chriz1 said:

I'm trying to work out the best and cheapest way to buy a Car which will be from a dealer. The car in question is £25k I have a an excellent credit rating and have been pre approved for a few loans with an intrest of 6.2%.

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.
Again I have been pre approved and it has an interest free period of 14 months .. then 24.9%! Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years)

Am I missing something ? Can this be done this way ? Or shall I continue to use a personal loan and just accept the extra I will pay in intrest ?

You could theoretically use borrowed money from a 0% credit card to fund your purchase, however you will likely have to pay a 3% fee for the balance transfer, so it's not completely free.

If I wanted a £25k car from a dealer, I would consider a leasing scheme.  Maybe this is another option to consider

DullGreyGuy

chriz1 said:

I'm trying to work out the best and cheapest way to buy a Car which will be from a dealer. The car in question is £25k I have a an excellent credit rating and have been pre approved for a few loans with an intrest of 6.2%.

But I'm wondering if I can use a credit card that transfers money into my bank account to buy the car.
Again I have been pre approved and it has an interest free period of 14 months .. then 24.9%! Obviously my plan before the intrest period ends would be to transfer the debt to another intrest free card and so on until I pay it off (Planning 3 years)

Am I missing something ? Can this be done this way ? Or shall I continue to use a personal loan and just accept the extra I will pay in intrest ?

How much are you needing to borrow? You say the car price but not if you have a £1k cash to put towards it or £20k to put towards it.

There is in principle nothing to say it won't work but if you are needing the full £25k then chances of getting a MT card with the £26k or so limit you'd need isnt great but in principle possible. What you are probably more at risk of is finding in 13 months time that no one is offering you a £20k BT to move the debt elsewhere and what loan rates are like in 14 months time is anyones guess.