Buying a new car on visa

[Flying Fish]

Anyone tried it? Better interest rate than a personal loan. Is it possible?

 

[theasxgorilla]

If you really want to make it interesting try to get one at a balance transfer rate...then you're talking < 3% interest for 12 months. Get ready to refinance again at the end of the 12 months with a balance transfer to a new card.

 

[sam76]

I was told that if you make the minimum repayments before they are due, you dont pay any interest on the loan and can pay off your car with no interest at all.

 

[Bomba]

One thing you need to look into aswell is if there is a fee charged for using a credit card to pay for the car.

I remember when I purchased my car I wanted to pay with my card so as I could get credit card reward points just for using my card.

I cant rememer exactly how much the fee was, but I do recall it was a percentage of the purchase price.

 

[Flying Fish]

I was told that if you make the minimum repayments before they are due, you dont pay any interest on the loan and can pay off your car with no interest at all.

How does that work? so if i borrow say 20000k and then minimum repayment is 400 odd, I am still paying interest on the outstanding amount am i not?

 

[wayneL]

How does that work? so if i borrow say 20000k and then minimum repayment is 400 odd, I am still paying interest on the outstanding amount am i not?

Yes,

It is only interest free if you pay off the whole amount.

 

[Flying Fish]

Ok. But what if I claim it some how on tax. is that possible? the interest I mean?

 

[gregcourageous]

interest free balance transfers are the greatest thing ever.

I paid for a 10k holiday on my ANZ credit card, signed up for a Virgin card a week later and got a 6 month balance transfer. so i got about 6.5 month of the banks money for nothing. Best ever, I'm going to do it again soon... Maybe do a few credit card deposits into IG markets then transfer to the money another card... hmmmm...

 

[Flying Fish]

interest free balance transfers are the greatest thing ever.

I paid for a 10k holiday on my ANZ credit card, signed up for a Virgin card a week later and got a 6 month balance transfer. so i got about 6.5 month of the banks money for nothing. Best ever, I'm going to do it again soon... Maybe do a few credit card deposits into IG markets then transfer to the money another card... hmmmm...

gee that sounds great. but you still need to pay it off?

 

[motion]

Hey I knew a guy who bought his house on the CC just for the points... works a treat if you are on a good rewards plan.....Make sure you pay the bill before the due date period...

 

[Flying Fish]

Hey I knew a guy who bought his house on the CC just for the points... works a treat if you are on a good rewards plan.....Make sure you pay the bill before the due date period...

Ok so you could use credit card for deposit and avoid hefty mortagage fee from bank?

 

[nioka]

How does that work? so if i borrow say 20000k and then minimum repayment is 400 odd, I am still paying interest on the outstanding amount am i not?

Not a good idea. the interest rate is probably around 18% and added each month. If your credit rating is that bad that you resort to this you shouldn't be borrowing.

 

[Flying Fish]

Not a good idea. the interest rate is probably around 18% and added each month. If your credit rating is that bad that you resort to this you shouldn't be borrowing.

But my credit card is 13%. Why don't people sell cars like any other item? I was not meaning to take cash. Just go around to my local car salesman like a supermarket and pay for my car, like I would groceries.

 

[insider]

I'm sure if you buy a car with a credit card you will pay more... banks charge commission to businesses when customers use cards... you might be able to save yourself 5% if you paid cash...

 

[YELNATS]

I was told that if you make the minimum repayments before they are due, you dont pay any interest on the loan and can pay off your car with no interest at all.

I'm a long time cc user who basically uses cc's as a charge card. ie. I use my cc's to consolidate several debts into just one creditor and get up to 55 days interest free credit. Also I pay off all the charges when they are due, not just the minimum amounts, and therefore never pay any interest.

However, my understanding is that if you only make the minimum payment, you start paying interest on the balance outstanding from the due date. If you fail to make the minimum payment, you also start paying interest on all new charges, from the day they are incurred, until full payment is made.

regards YN

 

[skalpel]

Only use CC if you have the $ to pay the next months full payment.

S