Credit card to buy a car..
Discussion
At the moment, my daily drive is a 1986 Landrover 110, which as much as I love... Isn't practicable for my needs right now. I'm a self employed tree surgeon, I'm starting to contract to different companies rather than finding my own 'jobs' as such.
I'm looking to buy a car in the £3k range (looking at clk's), I'm thinking about putting 2k of my money into it and then the rest and the insurance on a credit card.
I've never even looked into credit cards so haven't the slightest clue about them at the moment. Is this a good idea? Am I stupid? A lot of banks seem to be offering interest free cards but I'm not sure what the limit is on them. Can you just draw the cash out if you're buying a car privately and not from a dealer?
I'm looking to buy a car in the £3k range (looking at clk's), I'm thinking about putting 2k of my money into it and then the rest and the insurance on a credit card.
I've never even looked into credit cards so haven't the slightest clue about them at the moment. Is this a good idea? Am I stupid? A lot of banks seem to be offering interest free cards but I'm not sure what the limit is on them. Can you just draw the cash out if you're buying a car privately and not from a dealer?
Most a garage has ever let me put on a credit card was £500 i think.
But if you can get a 0% for X months and pay for the insurance and some of the balance, then go for it.
Just set up a direct debit every month for an amount and job's jobbed.
Most applications are for a £1200 credit limit, but you can set it as high as they will let you (one card of mine had a £700 limit, another has £8k)
But if you can get a 0% for X months and pay for the insurance and some of the balance, then go for it.
Just set up a direct debit every month for an amount and job's jobbed.
Most applications are for a £1200 credit limit, but you can set it as high as they will let you (one card of mine had a £700 limit, another has £8k)
0% New Purchases is exactly that- 0% interest on things you've bought for X months (minimum monthly payments apply).
Most tend to be around the 12-18 months
0% Balance Transfers is transferring balance from one/multiple cards onto the new card (for a small fee) and that has no interest on the amount on the card. Again, minimum monthly payments apply.
These tend to be for longer periods (20-30 months), and is a good way of avoiding people like Wonga and loan sharks.
Some have offers on both for the same card, so make sure you read the small print, keep up the repayments, and don't forget your Baby Oleg on the way out.
Most tend to be around the 12-18 months
0% Balance Transfers is transferring balance from one/multiple cards onto the new card (for a small fee) and that has no interest on the amount on the card. Again, minimum monthly payments apply.
These tend to be for longer periods (20-30 months), and is a good way of avoiding people like Wonga and loan sharks.
Some have offers on both for the same card, so make sure you read the small print, keep up the repayments, and don't forget your Baby Oleg on the way out.
Forget it. I tried this. I couldn't find a single dealer who didn't want to charge a 5% credit card fee to process the car. I ended up getting a bigger loan over a longer period and buying a better car. Don't get too bogged down by the APR, look at what you're paying over the term, the difference is rarely a lot.
Little Butch said:
At the moment, my daily drive is a 1986 Landrover 110, which as much as I love... Isn't practicable for my needs right now. I'm a self employed tree surgeon, I'm starting to contract to different companies rather than finding my own 'jobs' as such.
I'm looking to buy a car in the £3k range (looking at clk's), I'm thinking about putting 2k of my money into it and then the rest and the insurance on a credit card.
I've never even looked into credit cards so haven't the slightest clue about them at the moment. Is this a good idea? Am I stupid? A lot of banks seem to be offering interest free cards but I'm not sure what the limit is on them. Can you just draw the cash out if you're buying a car privately and not from a dealer?
Spend the weekend reading moneysavingexpert.com. Get a 0% money-transfer deal. Be VERY alert with your planning. Never ever miss a payment or overlap the free period.I'm looking to buy a car in the £3k range (looking at clk's), I'm thinking about putting 2k of my money into it and then the rest and the insurance on a credit card.
I've never even looked into credit cards so haven't the slightest clue about them at the moment. Is this a good idea? Am I stupid? A lot of banks seem to be offering interest free cards but I'm not sure what the limit is on them. Can you just draw the cash out if you're buying a car privately and not from a dealer?
I just got a motorbike on my card. Tesco gave me 18 months interest free on the purchase. Very straightforward to be honest. As others have said you can get transfer the debt to another card with no interest on transfer and then have another couple of years interest free. There will be a small fee to transfer of 2 or 3% but that's not so bad.
I like it as I can pay off more or less monthly as I need and I couldn't borrow 5 grand and cheaper!
I like it as I can pay off more or less monthly as I need and I couldn't borrow 5 grand and cheaper!
Worth putting at least £100 on a C/card for section 75 protection.
Sis-in-law got money back for a Smart Car they bought which turned out to have had an engine rebuild that was dangerous (there were things pressing down on brake lines, wiring looms etc!)and the dealer "disappeared", their £200 deposit on a CC saved them from a major loss.
http://www.which.co.uk/consumer-rights/regulation/...
Sis-in-law got money back for a Smart Car they bought which turned out to have had an engine rebuild that was dangerous (there were things pressing down on brake lines, wiring looms etc!)and the dealer "disappeared", their £200 deposit on a CC saved them from a major loss.
http://www.which.co.uk/consumer-rights/regulation/...
Get CC from someone offering very long balance transfer AND money transfers.
Transfer cash direct to bank account, remove cash, pay for car.
Pay card off monthly, if interest free period ends before you have paid off, transfer to another card with a new offer.
I've been doing this for the last 10 or so years. (Not with the same purchase I hasten to add)
If your credit rating is good the card providers will happily give you a decent limit after your first card.
Ensure you close the card once you have finished with it so you can reapply again after 6 months should they have a particularly tasty offer.
The only extra cost you will incurr is the %fee the providers charge when transferring between cards - usually 2.5% but you only have to do this once every 18 months - 2 years on the longer cards.
Transfer cash direct to bank account, remove cash, pay for car.
Pay card off monthly, if interest free period ends before you have paid off, transfer to another card with a new offer.
I've been doing this for the last 10 or so years. (Not with the same purchase I hasten to add)
If your credit rating is good the card providers will happily give you a decent limit after your first card.
Ensure you close the card once you have finished with it so you can reapply again after 6 months should they have a particularly tasty offer.
The only extra cost you will incurr is the %fee the providers charge when transferring between cards - usually 2.5% but you only have to do this once every 18 months - 2 years on the longer cards.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff