Credit Card for second hand Car Purchase?
Discussion
So I've been given my first ever credit card with a higher than expected credit limit, meaning that I have a buffer between selling my current car and purchasing a new one meaning I can start car shopping earlier than I expected (yay!).
Having not had a credit card before I don't have much of an idea how to go about purchasing (or rather part purchasing) a car on one.
It'll be roughly 40/60, on the card, the rest in cash/debit card, I take it that with a dealer with C.C facilities this shouldn't be an issue, but what if the dealer doesn't offer that option/I go for a private sale?
Am I stuck paying the crazy interest on drawing out Cash, or is there some way around this (as you do some sort of bank transfer using a CC)?.
I'm only looking to borrow on the card for a month or two at the most and then clear a chunk off the balance through the sale of my current car and finish the rest with my wages.
Any ideas?
Having not had a credit card before I don't have much of an idea how to go about purchasing (or rather part purchasing) a car on one.
It'll be roughly 40/60, on the card, the rest in cash/debit card, I take it that with a dealer with C.C facilities this shouldn't be an issue, but what if the dealer doesn't offer that option/I go for a private sale?
Am I stuck paying the crazy interest on drawing out Cash, or is there some way around this (as you do some sort of bank transfer using a CC)?.
I'm only looking to borrow on the card for a month or two at the most and then clear a chunk off the balance through the sale of my current car and finish the rest with my wages.
Any ideas?
There are always some 0% balance transfer deals about, sometimes you can get a card with 0% on cash advances.
Remember CCs charge interest monthly, so even if you withdraw cash, you can minimise interest by paying off the cash advance ASAP - A card charging 18% annually isn't going to be that expensive for a month....
Remember CCs charge interest monthly, so even if you withdraw cash, you can minimise interest by paying off the cash advance ASAP - A card charging 18% annually isn't going to be that expensive for a month....
You'll surely be able to borrow more cheaply using a personal loan, won't you? Even if you get a loan with an early repayment option the interest rate will still be cheaper than a standard credit card rate - unless you have a 0% new transactions deal, in which case it makes sense while that lasts.
I paid for car with a credit card once (pre-financial crisis when in their wisdom my bank gave me a credit limit of £18k!). I did it to get the reward points that I could put toward flights, but immediately paid off the balance with other funds. I don't recall the dealer charging anything for the privilege - if there was a charge, it was a fiver or something fairly trivial.
I paid for car with a credit card once (pre-financial crisis when in their wisdom my bank gave me a credit limit of £18k!). I did it to get the reward points that I could put toward flights, but immediately paid off the balance with other funds. I don't recall the dealer charging anything for the privilege - if there was a charge, it was a fiver or something fairly trivial.
I cannot imagine any dealer not charging you for this unless he's already done you over so much in the deal he can afford to laugh it off. Why would they accept a 1-2% loss simply through your choice of card? Every time I have asked to use a credit card I have been told that will be absolutely fine... for a 2% charge.
Axionknight said:
Mound Dawg said:
Sounds like the financial equivalent of "Hey dudes, watch THIS!"
Agreed. Go on lad - get in debt!I am putting not even half the total amount on the card to buy a tangible asset that will retain the majority of its value and have a very clear and concise plan to pay off the balance realistically within a month or two, and yet the PH financial adviors act as if I've just asked if I can put the finance deposit for a new white BMW 116d on it or something
.Good point fox on the fees, its not something I had thought of but I am not overly concerned at two percent.
279 said:
...the PH financial adviors act as if I've just asked if I can put the finance deposit for a new white BMW 116d on it or something .
You pitched the thread a bit wrong. You should have left out the story and just asked for advice on the best method to use a credit card to part fund a private purchase..It would also have helped if you'd mentioned it was for a TVR or something. If you're serious about getting that advice. Ask at the bank, or on money saving expert or somewhere.
Bennet said:
You pitched the thread a bit wrong. You should have left out the story and just asked for advice on the best method to use a credit card to part fund a private purchase.
It would also have helped if you'd mentioned it was for a TVR or something. If you're serious about getting that advice. Ask at the bank, or on money saving expert or somewhere.
If anything I thought the 'story' would have made it clear that I've got a plan to pay off the balance in a matter of weeks and don't really need long term advice to stay out of debt, just what the low down was when specifically purchasing a car on one (especially regarding private sales/no cc facilities.)It would also have helped if you'd mentioned it was for a TVR or something. If you're serious about getting that advice. Ask at the bank, or on money saving expert or somewhere.
Its for a v12 twin turbo or v8 supercharged Merc (or something equally bonkers), but I thought if I mentioned that I'd be hounded with patronizing "Well if you can't afford to buy it outright, how are you going to deal with running costs?" or similar.
I have never bought a car on credit card, but I have 2 cards that both run 0% interest on balance transfers for a small fee.
In the past I have used this method to reduce interest charges, by transferring the balance between the two cards.
These days though my balance is always paid off straight away, as I enjoy a debt free life.
In the past I have used this method to reduce interest charges, by transferring the balance between the two cards.
These days though my balance is always paid off straight away, as I enjoy a debt free life.
t you dont need. Good luck! Bought my car second and from a dealer and they'd only accept a relatively small amount on the credit card, can't remember the exact amount but I think it was something like £1-2k. I paid the deposit in the credit card and the rest on debit. Certainly worth asking as if they do only accept a small amount you ought to be able to negotiate a fee for putting more on it, and you can then check that against the rates the banks would give you for a couple of months loan.
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