Not very pistonheads.
Discussion
1scott12007 said:
To cut a long story short I need a new car, I have just started a new job and I have been approved for a loan with my bank. Although I can't be given the loan until out of my 6 month probation which is a little frustrating but understandable. I don't have enough savings to buy a car cash at the moment, I have seen a car for sale but I am £500 short (private seller), I have a credit card with plenty available would this be a bad idea to take cash out from branch to cover the rest. This would not be able to be paid off for 3 months. Would taking cash off the card be any different from paying the same amount over chip and pin? Sorry if these seem very naive questions!
(credit card is 16.62% apr)
Are you saying you approached the bank for a loan of £500 or the full amount of the car?(credit card is 16.62% apr)
If the former I wouldnt even have thought about a loan - just taken out the cash against my CC over two days as its probably the most straightforward way of getting credit. If you pay it off in 3 months it will cost very little and there is no chance of being turned down at the 11th hour etc.
Of course - you need to be sure that the £500 is the ONLY £500 this happens to and you don't get in the habit of loading cards in such a way. Can be a somewhat slippery slope if you aren't strict with yourself.
I had applied for a loan of £5000 I had seen a car I wanted to buy for this amount. With the loan being subject to me passing probation I have been looking at a temporary car for a few month to tied me over for a year (£1500). I just wanted to make sure taking cash out of a credit card would not cost me a fortune.
If you're spending that little, and going through a private seller, I'd be very cautious. Even if you are careful about the car you're buying, it's an old car and things are more likely to go bang on old cars than new ones. I would not want to be in the position of getting into debt to buy a car that doesn't have a warranty if I really needed a car to get to work.
R8VXF said:
Check the rate for cash withdrawals, it usually is a lot higher than the headline rate. A balance transfer is usually interest free with a small arrangement fee in the region of 3-5%. So 20-25 quid total.
So I would be better to do a balance transfer to my current account than walk into branch and withdraw the cash from CC.Edited by 1scott12007 on Sunday 1st March 20:02
1scott12007 said:
R8VXF said:
Check the rate for cash withdrawals, it usually is a lot higher than the headline rate. A balance transfer is usually interest free with a small arrangement fee in the region of 3-5%. So 20-25 quid total.
So I would be better to do a balance transfer to my current account than walk into branch and withdraw the cash for CC.Regardless of whether what you plan to do is a good idea or not, withdrawing cash on a credit card costs you extra in fees, and is bad for your credit rating.
If you have time, it would be better to put £500 worth of normal spending (that you would use your debit card for) on the credit card, and then take the £500 out of your current account.
If you have time, it would be better to put £500 worth of normal spending (that you would use your debit card for) on the credit card, and then take the £500 out of your current account.
Check theres no cash charge on your CC. Theres usually a premium for doing this and will charge for every month until paid off.
Plenty of cheap cars about. What have you been looking at? What are your criteria and are you willing to drive something with less "street cred" but get you where you want to go....
Some of the Sheds on here are pretty decent and I found a few older cars with sub 30k on them that apart from being obviously dated, drove and smelt like new.
Plenty of cheap cars about. What have you been looking at? What are your criteria and are you willing to drive something with less "street cred" but get you where you want to go....
Some of the Sheds on here are pretty decent and I found a few older cars with sub 30k on them that apart from being obviously dated, drove and smelt like new.
Not bothered about street credit at all its a 10 mile commute each way. I just need something trouble free I'm constantly scouting gumtree eBay classified on here. Nothing seems to be with 50 miles of Bournemouth that hasn't got 150k on the clock and a full MOT for under £1000. The bank have told me intrest is daily as appose to monthly on a balance transfer although no apparent fee for the transfer. Does this sound correct?
My understanding is 16.6% is applied over 365 days as opposed to over 12 month this way?
(Please excuse my naivety again!)
My understanding is 16.6% is applied over 365 days as opposed to over 12 month this way?
(Please excuse my naivety again!)
Edited by 1scott12007 on Monday 2nd March 13:24
Personally Id search Autotrader for anything Japanese, Honda Toyota etc. Under 60k and around 10 years old. Loads of cars owned by OAP's that have been serviced every year and done minimal miles.
I bought a Civic 5 door with 24k on the clock for £1200 a few years ago. When I finished using it I sold it for similar money. Went through 2 mot's without advisories as well!
Look on the bangernomics posts on here and see what others have done. A £500 car doesnt always mean a £1000 bill!
I bought a Civic 5 door with 24k on the clock for £1200 a few years ago. When I finished using it I sold it for similar money. Went through 2 mot's without advisories as well!
Look on the bangernomics posts on here and see what others have done. A £500 car doesnt always mean a £1000 bill!
1scott12007 said:
Not bothered about street credit at all its a 10 mile commute each way. I just need something trouble free I'm constantly scouting gumtree eBay classified on here. Nothing seems to be with 50 miles of Bournemouth that hasn't got 150k on the clock and a full MOT for under £1000. The bank have told me intrest is daily as appose to monthly on a balance transfer although no apparent fee for the transfer. Does this sound correct?
My understanding is 16.6% is applied over 365 days as opposed to over 12 month this way?
(Please excuse my naivety again!)
I'm sorry but that's BS! Within a minute I found 1800 cars under £1000 for sale within 20 miles of the city centre all trade sales so will come with some warranty. Including a nice £595 Fiesta with 12 month mot 2001 89,000 miles. That could easily give you 12 months trouble free motoring while you save up. My understanding is 16.6% is applied over 365 days as opposed to over 12 month this way?
(Please excuse my naivety again!)
Edited by 1scott12007 on Monday 2nd March 13:24
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