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.

 

[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

 

[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.

 

[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.

 

[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

 

[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

 

[DJMK4]

In general, I would say if you can avoid having a credit card, then do. Life is better when you don't owe anyone money. If you're doing it because you need the £2k, then just buy a £2k cheaper car, or wait until you've saved £2k. Avoid borrowing money whenever and wherever possible.

I dont need to save, although I am saving monthly, i have quite a bit of savings behind me




And yes correct, i have not used a credit card in years

because i want to put some of it on the card and pay it off, spread the cost over 3-6 months

I am going to use money from savings. But that said, my savings are earning interest at the moment

 

[DJMK4]

Like I said guys. I may not even end up using it. In which case I'll probably just close it. It will not end up being used for other purchases

 

[DJMK4]

Hi all received the 0% card today.

Although in the back of my mind I dont think many places are going to accept it. And I don't really want to have a card that may effect car finance application and in the back of mind traders who are only going to let me stick £500-1000 on it for the purchase.

Also. If I have a 0% card with a 4k limit. Is this going to have an effect If I say want to apply and put some on car finance company ? I assume car finance may do a credit check and see a recent credit card application .

I am looking to pay a deposit and lump sum but my main aim if I purchase is to get the balance down asap.

With car finance companies these days, if you make bigger overpayments can you have them recalculate and bring down the monthly the monthly payments ?


I have 21 days apparently to make up my mind on if I keep the card or cancel it without it effecting my credit rating. Apparently cancelling after 21 days or closing the account effects your credit rating. Can anyone confirm this?

 

[DJMK4]

Wife and I bought a used car from a Ford garage last October, they let us put only £250 on our credit card, but even part payment of an item gives you that credit card protection, the rest they insisted was on debit card... owing to the percentage fee's for the amounts they permit on CC

But if you use car finance doesn't this cover you with section 75 ? Or can you use your card and say pay £500 or £1000, if there is any problem ie catastrophic turbo failure , garage won't sort it. You have protection ? But you have only paid £250 on the card ? What is it protecting against if you have only put the £250 on the card ?.

 

[DJMK4]

Yeh I am reading now. Ok, it was more the question around applying for credit card and car finance at the same time if there will be issues

 

[DJMK4]

Just putting £100 on a credit card or other form of credit gives you full protection if something goes wrong with the purchased item and the seller is unreasonable, or if for example the retailer goes bust between you paying and taking possesion of the item.
IIRC there is an upper limit (25k or something?) if it's a part payment but basically if the garage tried to get out of their legally mandated warranty or something the credit company (be it card or finance) can basically fight for you or refund what you've paid.

I never pay for anything that isn't going to be walking out the door with me, or that is high value without using the credit card for at least part of the purchase.

When one of the carpet places went bust years ago my parents had paid for carpet, fixings, delivery and fitting, the company tried to get my parents to accept just the carpet and collect it with no refund for the other goods and services they'd paid for, the credit card basically said "yeah that's not on, fill this form in and we'll cancel the payment. For now it's not counting towards your credit limit or payments".

Ok cheers all