Credit Card to buy a car

geewhiz

Hi, I'm thinking of buying a new car and need to borrow £9000 over 5 years.

A loan would cost me £1600 in interest, is there any reason why I can't get a new 0% card every year and pay the same monthly amount but pay it off quicker.

I've not done exact calculations but it would appear cheaper than the loan even taking into account a 3% charge each year for the balance transfer.

Has anyone done this before or is there a calculator available for it ?

Thanks

RavingMad

Your idea is sound in theory but you might find it a bit more difficult to put in practice. Finding a card that will give you a £9000 limit will be your first hurdle.

lwcus78

I found a company who would let us use a credit card but they wanted to charge an extra 3% too.

Phantom_Flan_Flinger

lwcus78 wrote: »

I found a company who would let us use a credit card but they wanted to charge an extra 3% too.

That's the fee that they're charged from the CC company. All they're doing is passing that fee on to you.

jonesMUFCforever

geewhiz wrote: »

Hi, I'm thinking of buying a new car and need to borrow £9000 over 5 years.

A loan would cost me £1600 in interest, is there any reason why I can't get a new 0% card every year and pay the same monthly amount but pay it off quicker.

I've not done exact calculations but it would appear cheaper than the loan even taking into account a 3% charge each year for the balance transfer.

Has anyone done this before or is there a calculator available for it ?

Thanks

Who have you applied to and what rate did you get offered?
What is your credit files like?

If they are A1 spotless then you should be able to get a personal loan for between 6 and 7 % APR.
If you have spare cash then you should also be able to overpay to further reduce the final interest charged.

vansboy

We bought Mrs V her Mx5 on our Thomas Cook Card - when it was MBNA & a generous limit. Also the attraction of the holiday points worth 1.5% was worth having.

We did the 'deal' to buy & offered to pay deposit there & then on understanding that no surcharge would be made. we got this agreed, so it can be done.

We cleared the balance, though, as it wasn't a low or 0% rate.

You might be able to do it, on 0% card, then transfre balance, assuming you timed it right!!

VB

dipsy

vansboy wrote: »

We bought Mrs V her Mx5 on our Thomas Cook Card - when it was MBNA & a generous limit. Also the attraction of the holiday points worth 1.5% was worth having.

We did the 'deal' to buy & offered to pay deposit there & then on understanding that no surcharge would be made. we got this agreed, so it can be done.

We cleared the balance, though, as it wasn't a low or 0% rate.

You might be able to do it, on 0% card, then transfre balance, assuming you timed it right!!

VB

whats the holiday points thing, I have been with MBNA for years and don't know about it, I have a £6900 limit and usually use about £1500 a month but pay it off in full each month..... why haven't they offered me this?

Maybe its another case of being loyal ends up costing you

geewhiz

ejones999 wrote: »

Who have you applied to and what rate did you get offered?
What is your credit files like?

If they are A1 spotless then you should be able to get a personal loan for between 6 and 7 % APR.
If you have spare cash then you should also be able to overpay to further reduce the final interest charged.

I've not applied to anyone yet but have a good credit rating and always pay off the visa before interest is charged so won't have any problems getting a loan or a new credit card.

Will probably end up with a loan but I was just looking to save a bit of cash and maybe pay it off quicker with a credit card by making lump sum payments to it with bonus money or spare cash etc

benf90

dipsy wrote: »

whats the holiday points thing, I have been with MBNA for years and don't know about it, I have a £6900 limit and usually use about £1500 a month but pay it off in full each month..... why haven't they offered me this?

Maybe its another case of being loyal ends up costing you

They said they paid with a Thomas Cook credit card. MBNA offer many different types of credit cards, from both their own branded ones to ones for sponsoring football clubs or charities.

Looking on the Thomas Cook website the card is provided by 'Thomas Cook Personal Finance Ltd'. I'm sure someone will correct me if I'm wrong, but as that poster said "when it was MBNA" I presume the card used to be provided/serviced by MBNA but now it is provided/serviced by Thomas Cook Personal Finance Ltd.

So, you wouldn't have got or been told about the holiday points/pounds thing because:

1. You probably didn't have the card with the Thomas Cook logo on it
2. Presumably it is no longer serviced by MBNA so why would they promote a card they have nothing to do with?

A list of MBNA cards is available here:

http://www.mbna.co.uk/creditcards/index.html

Thomas Cook credit card details here:

https://www.thomascookcreditcard.com

If you're getting nothing at all from your current credit card maybe it is time to look at alternatives. There's a couple of cash back cards for instance that will give you 1% cash back on all your spending, meaning that you could be missing out on £15 a month.

jonesMUFCforever

geewhiz wrote: »

I've not applied to anyone yet but have a good credit rating and always pay off the visa before interest is charged so won't have any problems getting a loan or a new credit card.

Will probably end up with a loan but I was just looking to save a bit of cash and maybe pay it off quicker with a credit card by making lump sum payments to it with bonus money or spare cash etc

I hear this every day but have no reason to doubt you.

Just remember times are hard and getting credit is getting harder. Yes you probably will get a loan but at what rate? Who knows.
If you get quoted on the net at say 10% APR take the printed quote to your bank who have a retention unit that might match or even beat it.

geewhiz

ejones999 wrote: »

I hear this every day but have no reason to doubt you.

Just remember times are hard and getting credit is getting harder. Yes you probably will get a loan but at what rate? Who knows.
If you get quoted on the net at say 10% APR take the printed quote to your bank who have a retention unit that might match or even beat it.

Any time i've applied for a loan online I've just filled out a form and they've paid the money to my account, not found it difficult at all.

I've been quoted 7.1% from my own bank but will shop around.

Cheers