Buying a car on cc

chergar

I am just after a wee bit of advice please. We plan on buying a car in the next few months and are wondering if it is a good idea to pay for it on our cc and then get a 0% balance transfer card to transfer it over to. The car will probably be about £6k and we don't really want to take out finance for it but we can make the same payment every month as though we were paying finance (so probably more than the min. payment) iyswim.

I am just wondering if it is easy enough to get a bal. transfer card with a limit of £6k and if you have to t/fer your balance on opening the card as ideally I would like to have the card in my possesion before buying the car on our old card and t/ferring it over.

After the initial 0% period runs out we would look into getting another card again, does this affect your credit rating badly or as we won't be missing payments will it actually help our rating.

I am so confused and could really use some help guys Thanks.

ziknik

Most cards allow a few months for you to make the balance transfer at the promotional rate. e.g. virgin allow 3 months from account opening. Then give you 15 months at 0%

http://uk.virginmoney.com/credit-card-v3/

I don’t think there is an upper limit for transfers, but obviously, you must stay within your credit limit.

There’s no real harm in applying for the card and seeing what limit they give you. You can always change you mind and return it if the limit is not high enough.

I believe it does harm you credit rating if you for apply for loads of cards at the same time but I don’t feel it has ever harmed me (yet, and I’m only guessing).

Don’t bank on being able to get another 0% credit card to balance transfer again. How will you feel if you end up paying 26% interest in 15 months time? Do you really really need the car right now?

CLAPTON

why not save up for the car.. then you avoid paying any interest or BT fees?

but if you must then the MBNA cards allow BT to your current a/c for a fee of course

missile

Not many garages will accept £6K on a credit card.

ziknik

Many garages will charge another 3% credit card fee on top of the price.

NickX

Could go for an SBT(Super Balance Transfer) card such as Egg or any administered by MBNA (such as Virgin), they will allow you to transfer cash direct to your Current Account, although there will be a fee.

However, if you offer cash to the car dealer you may get a discount equivalent to the amount of the fee, thereby getting interest free credit.

I have bought many cars on credit, there is no need to save up for a car when you can borrow the money interest free. If you have to save up, then by the time you have the money the model may not be available any longer, and the equivalent model could cost even more.

Naturally if you are using credit to buy cars, you just need to ensure that you have a plan to repay the funds.

BenL

JCT600 in Bradford accepted a CC 2 weeks ago from me for £3300.

They added 2% on and I get the SkyCard Points to my card and my g/f is now balance transferring to her new 0% card as its her card.

owitemisermusa

BenL wrote: »

JCT600 in Bradford accepted a CC 2 weeks ago from me for £3300.

They added 2% on and I get the SkyCard Points to my card and my g/f is now balance transferring to her new 0% card as its her card.

That works out as a £66 charge - excellent value in my opinion. Beats having the £3300 included in their finance package which would undoubtedly cost you more. I think that it's not a bad idea at all using a CC as long as you get a 0% card etc.


WRT saving up for a car, my opinion (and hopefully gameplan) is as follows:

Part ex value + any small saving contribution + 0% CC payment, then whatever left can go on finance.


OWM

neverdespairgirl

NickX wrote: »

I have bought many cars on credit, there is no need to save up for a car when you can borrow the money interest free. If you have to save up, then by the time you have the money the model may not be available any longer, and the equivalent model could cost even more.

No reason, apart from not borrowing? Credit needs to be paid back, interest or no.

And if the model isn't available any more, something else will be! Car prices have gone down, not up, over the last decade or so.

NickX

neverdespairgirl wrote: »

No reason, apart from not borrowing? Credit needs to be paid back, interest or no.

And if the model isn't available any more, something else will be! Car prices have gone down, not up, over the last decade or so.

Yes credit does need to be paid back, but in the right circumstances it can be managed efficiently.

I know buying cars is not in keeping with Money Saving advice with the depreciation and maintenance etc, but everyone has one weakness - mine is cars. I once bought an Aston Martin for £35K and used a credit card for a large part of the purchase price - never paid a penny interest by rate tarting the debt on 0% cards.

And I'm afraid I disagree on the car prices, second hand prices may have dropped, but the prices of brand new cars have increased more that the rate of inflation over the last 10 years.

chergar

Thank you all for your advice and words of wisdom which I can now sit down and discuss with hubby.:T