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    • neilymac
    • By neilymac 11th May 18, 8:05 AM
    • 10Posts
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    neilymac
    buying a car with a 0% credit card
    • #1
    • 11th May 18, 8:05 AM
    buying a car with a 0% credit card 11th May 18 at 8:05 AM
    I'm looking to buy a new (to me!) car, and looked at various finance options.

    it seems if I use a 0% interest on purchases Credit Card, I will in effect get a fee free loan as long as I pay it off within the interests free period?

    any reason why I shouldn't do this?
    I phoned a national car sales company (Evans Halshaw) to see if there would be any charges for using a credit card, and if they take credit cards as payment.
    They advised that they don't make any charges themselves, but "pass on the transaction fee that my credit card company will charge, which could be between 2-5%, depending on which credit card company it is".
    Can they do that? I thought the rules had changed this year?

    any info appreciated (apologies if people have asked this before- I did a forum search but am using my phone and couldn't see it properly!)
Page 1
    • minimike2
    • By minimike2 11th May 18, 8:46 AM
    • 2,034 Posts
    • 1,535 Thanks
    minimike2
    • #2
    • 11th May 18, 8:46 AM
    • #2
    • 11th May 18, 8:46 AM
    You are correct, the retailer is not able to charge you any additional fees for using a credit card.
    • wannabefrugal
    • By wannabefrugal 4th Jul 18, 6:45 PM
    • 26 Posts
    • 70 Thanks
    wannabefrugal
    • #3
    • 4th Jul 18, 6:45 PM
    • #3
    • 4th Jul 18, 6:45 PM
    I just bought a car on my 0% card this week, or rather I put half on the credit card and half on a debit card. The car dealer will swallow the 2% fee.
    So yes,I effectively have a fee-free loan, to be paid at my leisure,(until 0% deal runs out) and cashback on top.
    • cloud_dog
    • By cloud_dog 5th Jul 18, 9:44 AM
    • 3,904 Posts
    • 2,348 Thanks
    cloud_dog
    • #4
    • 5th Jul 18, 9:44 AM
    • #4
    • 5th Jul 18, 9:44 AM
    I've purchased our last 4 (maybe 5) cars on 0% CC.

    Another play on the same concept, and this is where they may not accept payment by CC, is to take out a 0% CC for purchases and use it to make all your day-to-day purchases and save the money you would have repaid in to a savings account. Then use the saved cash to purchase the car.

    Obviously this may take some time (depending on how much you spend on a CC). We spend approx 19k on CC so less than a year for us when I did it that way.

    To do any of this you must be controlled in your debt management and ensure you can make repayments.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Thrugelmir
    • By Thrugelmir 5th Jul 18, 8:35 PM
    • 61,076 Posts
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    Thrugelmir
    • #5
    • 5th Jul 18, 8:35 PM
    • #5
    • 5th Jul 18, 8:35 PM
    The car dealer will swallow the 2% fee.
    Originally posted by wannabefrugal
    Or the price you agreed upon was inflated enough to cover the cost to the dealer.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Carrot007
    • By Carrot007 5th Jul 18, 8:46 PM
    • 1,728 Posts
    • 1,475 Thanks
    Carrot007
    • #6
    • 5th Jul 18, 8:46 PM
    • #6
    • 5th Jul 18, 8:46 PM
    any reason why I shouldn't do this?
    I phoned a national car sales company (Evans Halshaw) to see if there would be any charges for using a credit card, and if they take credit cards as payment.
    They advised that they don't make any charges themselves, but "pass on the transaction fee that my credit card company will charge, which could be between 2-5%, depending on which credit card company it is".
    Can they do that? I thought the rules had changed this year?
    Originally posted by neilymac

    Reason one why you should not do this...


    Evans Halshaw.


    as long as you understand the only thing that will occur to the car before you get it is a cleaning and a fake MOT then you will be fine. Expect to book it in for a servicing immidieatly and maybe a belt change that they said was done but have no proof (if applicable, most cars they sell are not that old).


    Also no, your CC will not put on a fee unless they have some sick way of making it a cash transaction. Be prepared to refuse if the value they enter is not what you expect to pay.


    That said I have bought from EH and paid on a CC myself (no charge occured), but this was many years ago and I was aware what I was doing! (as in the car was a bargain compared to elsewhere as it seemed to not sell and had been moved around, it has not been fine for over 100K)
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