0% interest credit Card & Car finance

[MK1RS Bruce]

Looking at using a 0% interest credit card to finance part of a new to us used car.

Virgin Money currently have one with 16 months interest free period on it. I am wondering if anyone has gotten one recently and what the typical limits are like for 0% interest free cards.

I have a good credit rating and affordability checks shouldn't be an issue but it just seems that 16 months interest free on a decent limit is too good to be true??

I would need about 8K I reckon.

Any pitfalls to using a credit card to pay for part of a car?

Any suggestions on other 0% cards?

[Edible Roadkill]

Those longer rates are usually on transfer rates not purchase rates. You’d likely have to zap another credit card on the purchase then transfer to the new 0% one. Never paid for a car via credit card so unsure if it’s done.

[skilly1]

Bought my windows on 0% for about £10k. Got the money though virgin CC. Used it for 16 months then transferred to another 0% card. Paid it off after 3 years with 0 interest.

You could always get 2 cards if the 1st limit is too low.

[deja.vu]

Edible Roadkill said:

Those longer rates are usually on transfer rates not purchase rates. You’d likely have to zap another credit card on the purchase then transfer to the new 0% one. Never paid for a car via credit card so unsure if it’s done.

100% completely wrong.
Lots of people offer 0% purchases.l hsbc ( one of many ) offer 20 months on purchases and 17 on transfers.
Barclaycard 22 months, MBNA 22 months, M&S 18 months.

Shall I go on?

Them trick is finding a dealer who is happy to take it

[Deep Thought]

skilly1 said:

Bought my windows on 0% for about £10k. Got the money though virgin CC. Used it for 16 months then transferred to another 0% card. Paid it off after 3 years with 0 interest.

You could always get 2 cards if the 1st limit is too low.

Car dealers wont usually take credit cards for full payment (or significant payment), which means you're in to the realms of cash transfer off the card, which i think most CC companies charge around 4% for.

But yes, ideal for what you did with it.

[Deep Thought]

deja.vu said:

Edible Roadkill said:

Those longer rates are usually on transfer rates not purchase rates. You’d likely have to zap another credit card on the purchase then transfer to the new 0% one. Never paid for a car via credit card so unsure if it’s done.

100% completely wrong.
Lots of people offer 0% purchases.l hsbc ( one of many ) offer 20 months on purchases and 17 on transfers.
Barclaycard 22 months, MBNA 22 months, M&S 18 months.

Shall I go on?

Them trick is finding a dealer who is happy to take it

That'll be the problem. Dealers work on v low net margins, a good part of which could be wiped out with the credit card interest.

If they're happy to take the hit on the fees, then there was maybe more discount to be had in the first place.

Oh, and they pretty much all charge for transfers. That HSBC card incurs a 2.99% charge for any transfers, so whilst "interest free" you're still paying notable charges.

[DSLiverpool]

MBNA give you a 83% cash transfer for 3% fee that’s it / 15 months.

[Another project]

I bought my focus st that way, I did a money transfer on a virgin cc fixed for around 18 months with a 4% fee to buy the car now I've just done a balance transfer to a new card for 20 months. Hopefully I'll get it all paid off by then

[K77 CTR]

Mercedes would only allow me to pay £1000 on credit card when I bought my car in 2021. I'd got a 0% credit card for that exact reason but wasn't doable.

[GilletteFan]

Should be able to get enough credit to transfer the full amount you are looking for. Be mindful of the payment hierarchy that many of these card companies have in place. Balance transfers are typically higher than retail purchases, so any payments you make will go to the transfer balance and not your purchase. Only use the transfer card for your transfers and a different card for your purchases. I could be wrong here. Make sure you read the T&C's. Happy free credit.

[MK1RS Bruce]

Deep Thought said:

deja.vu said:

Edible Roadkill said:

Those longer rates are usually on transfer rates not purchase rates. You’d likely have to zap another credit card on the purchase then transfer to the new 0% one. Never paid for a car via credit card so unsure if it’s done.

100% completely wrong.
Lots of people offer 0% purchases.l hsbc ( one of many ) offer 20 months on purchases and 17 on transfers.
Barclaycard 22 months, MBNA 22 months, M&S 18 months.

Shall I go on?

Them trick is finding a dealer who is happy to take it

That'll be the problem. Dealers work on v low net margins, a good part of which could be wiped out with the credit card interest.

If they're happy to take the hit on the fees, then there was maybe more discount to be had in the first place.

Oh, and they pretty much all charge for transfers. That HSBC card incurs a 2.99% charge for any transfers, so whilst "interest free" you're still paying notable charges.

So just for clarity with the above card assuming they approved a suitable limit, using £8k as an example the total "cost" would be 8000 x 1.0299 in order to get access to £8000 of cash. I would then have the xx months of 0% interest period to pay off the card balance?

[Deep Thought]

MK1RS Bruce said:

Deep Thought said:

deja.vu said:

Edible Roadkill said:

Those longer rates are usually on transfer rates not purchase rates. You’d likely have to zap another credit card on the purchase then transfer to the new 0% one. Never paid for a car via credit card so unsure if it’s done.

100% completely wrong.
Lots of people offer 0% purchases.l hsbc ( one of many ) offer 20 months on purchases and 17 on transfers.
Barclaycard 22 months, MBNA 22 months, M&S 18 months.

Shall I go on?

Them trick is finding a dealer who is happy to take it

That'll be the problem. Dealers work on v low net margins, a good part of which could be wiped out with the credit card interest.

If they're happy to take the hit on the fees, then there was maybe more discount to be had in the first place.

Oh, and they pretty much all charge for transfers. That HSBC card incurs a 2.99% charge for any transfers, so whilst "interest free" you're still paying notable charges.

So just for clarity with the above card assuming they approved a suitable limit, using £8k as an example the total "cost" would be 8000 x 1.0299 in order to get access to £8000 of cash. I would then have the xx months of 0% interest period to pay off the card balance?

Yes - with the caveat that they will do it for a percentage of your credit limit - might be 80% or 85% (did someone mentione 83%?). So to get £8K you might need a £10K limit.

[SBF]

Can often get Money Transfers on similar terms, e.g. I once made a purchase with a 0% money transfer offer over 24 months. Transferred the £5k into the bank, walked in, paid by debit card out of said bank account.

[Deep Thought]

SBF said:

Can often get Money Transfers on similar terms, e.g. I once made a purchase with a 0% money transfer offer over 24 months. Transferred the £5k into the bank, walked in, paid by debit card out of said bank account.

Yes, thats what we were talking about.

[SBF]

Deep Thought said:

Yes, thats what we were talking about.

You're right, sorry for some reason I read the thread as 'balance transfer' this whole time

[richardxjr]

MSE are saying the Virgin one is 12 months?

I personally found their credit limit lower compared to the other contenders here, MBNA (part of Lloyds) being cheapest & longest, followed by Tesco.

https://www.moneysavingexpert.com/credit-cards/mon...

[bogie]

I have a Virgin Money card, and just checked the latest deal available in the app (its all done by app, a paperless card)

2.5% until end May 2024 if taken today, so its 12-13 months at 0% with 2.5% up front fee up to 85% of credit limit.

I have a £15k limit, thinking back to when I got the card it started out at £10k and they increased it over the years even though I never got anywhere near the limit. I use it for business as no fees when abroad.

Its a 2.5% loan for 12 months, not really "interest free" in that respect.

[Deep Thought]

bogie said:

I have a Virgin Money card, and just checked the latest deal available in the app (its all done by app, a paperless card)

2.5% until end May 2024 if taken today, so its 12-13 months at 0% with 2.5% up front fee up to 85% of credit limit.

I have a £15k limit, thinking back to when I got the card it started out at £10k and they increased it over the years even though I never got anywhere near the limit. I use it for business as no fees when abroad.

Its a 2.5% loan for 12 months, not really "interest free" in that respect.

Is that for cash transfers or balance transfers?

I've a vague recollection of it being 4% when i last saw the offer pop up in the app.

[FlyingPanda]

As mentioned earlier, getting the dealer to accept a credit card for the whole lot is going to be the issue here. I have usually managed to pay a deposit on a CC, but even that usually has a max amount of about £1,000. I think the most they have ever let me put down in the past has been £4k (against a £55k car) and I only did that so that I could get the points!

[bogie]

Deep Thought said:

Is that for cash transfers or balance transfers?

Both the same rate and offer, cash or balance transfer