Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Please help - financing a car purchase, what’s best?!

19 replies

twolittleboysonetiredmum · 03/04/2018 22:14

So we have to buy a new (to us) car. We need to spend approx 10k to get what we need. We have approx 5k to put towards this in cash and maybe 500-1k as part ex in our broken old car. I’d assumed that we could just pay the rest (so maybe 5k) on a credit card, transfer to an interest free and clear within a year or two hopefully. However I’ve been reading around and seems most car dealers don’t take ccs for over a certain amount. Is that true? If so, would we do better to withdraw the cash from the cc? Take on car finance? Get a bank loan? I liked the idea of being able to manage how much I paid each month with the cc as it could vary and would hopefully clear it quicker. I’m not sure what to do and would appreciate some wise words! Thanks

OP posts:
IsDaveThere · 04/04/2018 13:20

Do you have a credit card with a limit high enough? I must say that I haven't heard that car dealers will not take CC's over a certain amount but then again I haven't bought a car from a dealer for years. Maybe phone a couple and ask?

Withdrawing cash from a credit card is NOT a good idea, especially not for that amount. You will be charged a massive fee probably and higher interest, unless you can get a new card that offers money transfers (into your bank account) and has a high enough limit in it.

Original poster
twolittleboysonetiredmum · 04/04/2018 14:02

Yes our credit card has a high enough limit which is why I just assumed I could use it.
Good point re cash. We’ve not bought from a dealer before so just basing it on what I’ve read online

OP posts:
Toomanycats99 · 06/04/2018 06:51

I bought a new (to us) car 2 years ago and credit card was limited to deposit amount I think. I just got a bank loan as assumed it would be better rate than through car garage. Did with my bank and was pretty easy. Half hour on phone and using an interactive website where I electronically signed stuff. We borrowed £5k as well. Incidentally it turned out the rate from dealer was about the same as the bank so would not have been much different.

MrsTylerJoseph · 06/04/2018 06:54

If you’re anywhere near a Bristol st motors dealer they’re doing 0% deposit this week including on second hand cars.

MrsTylerJoseph · 06/04/2018 06:54

Sorry, 0% finance. Don’t know if there’s limits or not, just saw an ad the other day.

BBCK · 08/04/2018 14:37

I have used my credit card to buy cars. No problem as long as you credit limit is high enough. Do not take out a car loan, get a personal loan as they are much cheaper as long as you borrow over 7500

Notyetthere · 08/04/2018 15:13

We recently bought a car for £10k from a dealer. We paid 7k cash and put the 3k balance on credit card. They said there was no limit anymore on how much you could put on cc. They also didn't charge the fee they normally do as it is now not allowed to charge people a fee for paying for things on credit card.

Original poster
twolittleboysonetiredmum · 08/04/2018 15:15

Have checked with dealer and definitely can’t use credit card. I’ve applied for a low apr personal loan and not heard back. The car finance is 6.9%. Are there any loans that would be an instant or quick response?

OP posts:
LizzieDarcy1907 · 08/04/2018 15:19

DD got a loan for her car through Sainsburys bank. Instant decision online and 2.9% apr.

Madonnasbiggestfan · 08/04/2018 15:27

Can you not find a car for £5k. In this day and age I would advise not taking out any loans.

Original poster
twolittleboysonetiredmum · 08/04/2018 15:31

Yes we could get a car for 5k. However we have done that with our past few cars and have ended up with cars we can’t trust after a few years that invariably cost a lot to keep going. Our most recent has broken down with all 3 chn in the car on the way back from a holiday and is not worth repairing. We’re hoping in buying a newer car to not end up here again so soon

OP posts:
mercurymaze · 08/04/2018 15:33

I have a car with Ford options. pay a couple of hundred each month then upgrade after three years just had to put down a deposit

mercurymaze · 08/04/2018 15:34

Means you can upgrade before car gets knackered!

whiskyremorse · 08/04/2018 19:31

I paid £8k on my credit card for a car, after paying the deposit on the same card. They weren't at all bothered.

Original poster
twolittleboysonetiredmum · 08/04/2018 20:10

Maybe it depends on the dealership? I’ve no idea. I’d much rather pay it on credit card

OP posts:
scaredofthecity · 09/04/2018 12:02

We negotiated paying on CC. I think it's just because it costs them more and they lose the chance of a credit deal with you.
What about transferring cc balance to current account. My CC company keeps advertising this to me but I'm not sure how it works, or if you have to pay.

Notyetthere · 09/04/2018 14:08

Mine was with Toyota where they didnt have a problem with me paying the balance on credit card.

dickiedavisthunderthighs · 09/04/2018 14:26

I bought my last car on my credit card. I think you should look for a different dealer.

whereiscaroline · 09/04/2018 14:40

You can sometimes do a "money transfer" from a credit card. It's like a balance transfer but they put the money straight into your current account. Worth seeing if you have a good money transfer rate on offer? Avoid withdrawing cash directly using your credit card - fees for this are often sky high.

New posts on this thread. Refresh page
Swipe left for the next trending thread