Using a Credit Card to Buy a Car

In most cases, using a credit card to buy a new car will not make the best financial sense, as the interest rates offered by many cards may be as high as 20%. However, there are a number of cards that offer flat rates of as low as 5.9%, although these may come without the standard interest free period offered by most cards.

You may also be able to use a credit card that offers an introductory 0% APR for up to 12 months, giving you slightly more time to pay off the balance without incurring excessive charges. If you do your homework carefully, you may be able to 'hop' between credit cards whilst you are paying off the sum, taking advantage of low or zero percentage offers for balance transfers.

Advantages

The advantage of using a credit card is that the credit card issuer is jointly liable with the dealer if the car has any faults (this applies to any purchase between £100 and £30,000). However, not all dealers will accept credit cards, and many will charge an extra 1 to 3 % fee for doing so.

You can find out more about this type of purchasing option on InterCreditCards .

Click here to read more from InterCars.co.uk