0% Credit card for part payment (car) - good idea or not

[DJMK4]

Hi all,

Maybe looking to sign up for a credit card (not had one in many many years) as generally I dont need them.

But looking to purchase a used car soon. if i get one from a trade garage or dealership im looking to make the purchase with a deposit, possible part ex, possible combined some from savings and I was maybe thinking 1-2k on a 0% Card

Is it worth it ? i hear some places wont take the full amount on and may take only a part payment.

If this is something that is worth doing, would a 0% on purchases card be better or 0% money transfer (with the money transfer it could be sent to my bank then i could pay them either via debit card or bank transfer (or cash) although id ideally like it to be digital.

 

[MrRockliffe]

Credit card for the added protection. Section 75 from memory?

 

[NooBish AbbZ]

I looked into doing this for the whole price of the car, but the dealership I was buying from wouldn't take it.

Rather than taking a 8-9% loan, I took 3 credit cards using Money Transfers for around £15k. I can't remember the fees, but the total fee was around £750. All of them had 0% periods of around 12-20 months, and plan to bounce them in order to pay over 2 years(all at 0%) Taking into account the fees, the 'interest rate' is equivalent to about 4.5%. Or lower if I spread it over longer provided no further fees.

So, it can be done, and I'm sure yours would be way easier than mine! I believe some dealers don't like taking credit card due to the credit card fees.

When I looked into it initially (ie buying a car using credit card) I wasn't sure if the transaction would be seen as a purchase (therefore 0% on purchases) or a transfer

 

[DJMK4]

I wouldnt be looking at multiple cards to be honest,

as said ill probably look at one and maybe use it to put what ever they accept on it, hopefully they accept £1 or £2k maybe and i can sort the rest by deposit, maybe part ex, some savings and rest by small finance.



So 0% money transfer card maybe a better option over a 0% purchase card


Wondering if anyone does a combined 0% on purchase and money transfer so i have either option.

I will have to look, although wasnt sure if it would be wise then having a credit card and a potential finance on my report, even though I would be looking at paying it down quickly if possible

 

[BUDFORCE]

I bought my last car (£8k) on a credit card.

Well worth doing if you can.

You shouldn't be afraid of credit cards if your are sensible with money.

If you pay them off in full every month, they cost you nothing, and many will you rewards or cashback etc

I basically put all of my spending through my credit card, get the rewards, and pay it in full, the added protection is the icing on the cake.

The credit card companies will hate customers like me.

 

[OldKitMan]

Assuming the car is under £30k then at least pay the deposit on it to get the Section 75 protection. A lot of garages wont take full payment on a CC but some do especially if it's completely ordered online, a handy hint is that if you've never seen the car and can complete all the paperwork remotely then you have distance selling in your favour as well which means you can return it during the first 14 days for any reason.

 

[Feek]

Just remember that a lot of places won’t take credit cards for cars because of the fee they have to pay.

Big dealers are more likely to accept them but small independents, not likely at all.

 

[DJMK4]

OK thanks all,

I will look at applying for a card to potentially use it as a part payment method,

although i guess if i want protection, it would have to be a 0% purchase card, I guess id get no protection if i done a money transfer.

 

[bobuk]

Check with the company you are buying from, most car dealers wont accept credit cards.

 

[DJMK4]

Check with the company you are buying from, most car dealers wont accept credit cards.

I have no idea who im buying from at the moment,

Its a bit bleak on the search front so until i find something, i wont know

Aleast if i apply for a card, i can have it ready just in case.

 

[Raymond Lin]

If you can use the card for its credit and NOT pay back interest, stick to payment terms. You get all the benefits and zero cost.

Do it. There is no downsides.

People who don't like credit card thinks the downside is the spiral debt from overspending. That is not the fault of the credit card, that is the fault of the person.

When I got my car years ago I put £2k on credit card and the rest with cash. You only need £100 to be spent on it for S.75 protection. So you can say "can I put a deposit down on my card" and give him a credit card for that.

 

[tom_e]

although i guess if i want protection, it would have to be a 0% purchase card, I guess id get no protection if i done a money transfer.

Correct but you do only have to spend a quid on the CC to have cover as long as the total value is over £100 and under £30k

 

[DJMK4]

OK,

Just applied for a Barclaycard

Approved with a 0% on purchases for 21 months

£4k limit

Should be with me in 5 days, and will keep it aside as a backup


Hopefully if i find something they would accept a couple of k on a card

Now i just need to look around, although the hunting is not really great at the moment


If i dont end up using the card for a car purchase ill probably end up closing the card account

 

[NooBish AbbZ]

Yeah, I'll echo wht loads of people say. Credit cards are a great financial tool if you ensure you get the benefits without the negatives (interest)

If I didn't get 1% cashback on my debit card I'd be using a credit card with rewards for every penny I spend in a month, with a standing order to clear the balance every month.

Good luck with the hunt What're you looking for?

 

[CaptainRAVE]

I bought my last car (£8k) on a credit card.

Well worth doing if you can.

You shouldn't be afraid of credit cards if your are sensible with money.

If you pay them off in full every month, they cost you nothing, and many will you rewards or cashback etc

I basically put all of my spending through my credit card, get the rewards, and pay it in full, the added protection is the icing on the cake.

The credit card companies will hate customers like me.

That’s exactly what I do. I used to also have an emergency credit card that wasn’t set to automatically pay in full each month.

 

[413x]

I've always loved credit cards. They are so useful for so many things. And allow you to spread cost of big and/or emergency payments over time and not have to scrabble around for the end of the month.

I perpetually have at least 1 0pc credit card just in case. As well as for planned things.

Obviously don't do this if you're bad with money. But if you are good with money.. You're passing up so many benefits not having one.

Just had a vet bill for 3k, may grow to 4-5k. But I have that space on my 21 month 0pc credit card. Sure it's **** but meant I don't hasn't to think about money while thinking about my boys health. I know I can cover that money over 21 months no problem. If not is needed to raid the isa.

 

[pc-guy]

Pay at least £100 on credit card on any purchase is great idea. Protection is fantastic.

0% purchase is no brainer. Just be mindful that some dealership won’t let you put too much on the credit card.

Places like car giant etc just don’t like credit card payment at all.

 

[DJMK4]

Good luck with the hunt What're you looking for?

Literally have no idea

My car 4 + years ago was a 3 series BMW Diesel

the car i have now is a 1 series BMW diesel (Coup)





I like BMW's but i am getting abit sick of the same issues cropping up at the same miles

I am really hating the knocking, and the gearbox/clutch / transmission issues i keep getting on them




EIther looking at a BMW, or Audi at the moment

Literally no idea, cant decide based on the search results

 

[Defy Belief]

If you pay them off in full every month, they cost you nothing, and many will you rewards or cashback etc

I basically put all of my spending through my credit card, get the rewards, and pay it in full, the added protection is the icing on the cake.

The credit card companies will hate customers like me.

I do the same, Amex pay me about £300 on an annual basis with the 1-2% cashback I get, only time I don't use it is when it's not accepted! Never paid a penny in interest but gained a lot..

 

[tom_e]

When I got my car years ago I put £2k on credit card and the rest with cash. You only need £100 to be spent on it for S.75 protection. So you can say "can I put a deposit down on my card" and give him a credit card for that.

Pay at least £100 on credit card on any purchase is great idea. Protection is fantastic.

You can stick a quid on your credit card and get S75 cover as long as the cash price of the item is between £100 and £30k

Problems with goods and services: section 75 and chargeback

Having problems with goods and services bought with a loan, debit card or credit? Here's our general approach to complaints from consumers on these issues.

www.financial-ombudsman.org.uk

Section 75 applies if:

• you paid some or all the cost by credit card, with a point-of-sale loan, or with certain catalogue shopping accounts
• the cash price of the goods or services is more than £100 but not more than £30,000

It’s important to note that:

• it's the cash price of the goods or services that matters, not what you paid on your credit card or loan – for example, Section 75 applies even if you only made part of the payment using credit