buying a car on a credit card
Discussion
Seemed like crazy suicide to me but last night at a party one guy was saying how he always bought his cars on a CC, by taking up the free 18 month Zero interest period on a credit card, taking the money interest free then paying it of at the end either with payments he had saved in an ISA and got tax free interst on or with another loan.
Is he, and in turn I, missing something?
I have 12 months left on my car's finance at 4.1% (taken out when that rate was less than my ISA was paying) and I was thinking of paying it off in cash but now........
Is he, and in turn I, missing something?
I have 12 months left on my car's finance at 4.1% (taken out when that rate was less than my ISA was paying) and I was thinking of paying it off in cash but now........
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You'd have to have a large credit limit to cover a decent car though.
When I bought mine, I put £1000 deposit on the CC - as it was convenient, and also was told (but not sure) that the CC company would have part liability under the CCA should things go wrong (presumably only up to their exposure). Any more would've cost 2% fee.
When I bought mine, I put £1000 deposit on the CC - as it was convenient, and also was told (but not sure) that the CC company would have part liability under the CCA should things go wrong (presumably only up to their exposure). Any more would've cost 2% fee.
AndyAudi said:
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You can obtain cash from a 0% balance tranfer card and use than to pay the garage rather than using the credit card directly.I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
Mattt said:
You'd have to have a large credit limit to cover a decent car though.
When I bought mine, I put £1000 deposit on the CC - as it was convenient, and also was told (but not sure) that the CC company would have part liability under the CCA should things go wrong (presumably only up to their exposure). Any more would've cost 2% fee.
Section 75: Pay at least £100 for something (even only a deposit) and the credit card company is jointly and severally liable to the debtor. There's an upper limit of 30k as to what they're liable to.When I bought mine, I put £1000 deposit on the CC - as it was convenient, and also was told (but not sure) that the CC company would have part liability under the CCA should things go wrong (presumably only up to their exposure). Any more would've cost 2% fee.
I had the money to buy my car with a low cost loan, but took out a 4% intro cashback card before buying - even with the 1% CC surcharge the dealer charged still got over £1500 cashback
As for large credit limit I had an arrangement with the dealer that I could make 3/4 payments and would collect on last payment.
As for large credit limit I had an arrangement with the dealer that I could make 3/4 payments and would collect on last payment.
Edited by bigburd on Sunday 27th September 12:33
fandango_c said:
AndyAudi said:
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You can obtain cash from a 0% balance tranfer card and use than to pay the garage rather than using the credit card directly.I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
Vron said:
fandango_c said:
AndyAudi said:
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You can obtain cash from a 0% balance tranfer card and use than to pay the garage rather than using the credit card directly.I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
IL_JDM said:
fandango_c said:
Vron said:
fandango_c said:
AndyAudi said:
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You can obtain cash from a 0% balance tranfer card and use than to pay the garage rather than using the credit card directly.I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
Abbey, 0% for 15 months
HSBC/Natwest/RBS, 0% for 15 months
MBNA Platinum 0% for 13 months
IL_JDM said:
fandango_c said:
Vron said:
fandango_c said:
AndyAudi said:
Whilst possible, I recon that if you find a garage willing to accept the cc, they're making enought of a profit off of you already to cover the fee from the CC company.
I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
You can obtain cash from a 0% balance tranfer card and use than to pay the garage rather than using the credit card directly.I get cash back on my card so thought I'd give it a go only to be told it would cost me an extra 2%, as they'd been on the receiving end of hefty charges with others like me trying to maximise cashbacks & airmiles already.
Abbey, 0% for 15 months
HSBC/Natwest/RBS, 0% for 15 months
MBNA Platinum 0% for 13 months
Nationwide 0% for 13 months
Halifax 0% for 13 months
Post Office 0% for 12 months
All of which have around 3% transfer fee
Edited by IL_JDM on Monday 28th September 12:19
The transfer fee erodes the benefits available.
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