We need to replace one of our cars (getting scrapped - no trade in value). We're looking to spend £8000-£10000 on a replacement. We could fund this out of savings but this would leave us with a very low rainy day fund which makes both of us uncomfortable so we are planning to buy on credit.
Some dealerships are offering PCP deals etc on new cars at 0% but this isn't generally an option on used cars. We are considering trying to finance it on a 0% credit card. If we can get an eg 20 month interest free deal we would plan to pay off 250 pcm, clearing 5k in the interest free period. We would then either balance transfer to a new deal to continue to pay off or clear from savings at that point. Of course we would also have the option of selling the car to clear the debt provided we ensure we pay the balance of at a higher rate than the car depreciates at.
DH is the higher earner so would be applying for a credit card for this rather than me. He has excellent credit history. He currently has two credit cards which he uses fairly frequently but always pays off in full every month - they are generally just used to make it easier to see what is being spent on what if that makes sense and to seperate out purchases. My concern is whether the access to credit he already has is going to make it difficult to get accepted for a new card with a high enough limit. One of the cards has a limit of 11k (zero balance currently). Is it best to close one of these accounts first or request a limit reduction? Can he apply saying the plan would be to close one of the older accounts on acceptance?
Would appreciate any advice on both the general idea and the technicalities of trying to get an interest free card in place.