Credit Card

One of the benefits of buying with a credit card is the added protection it gives you. If you use a credit card to pay any portion of a purchase worth between £100 and £30,000, the credit card company is jointly liable for compensation if something goes wrong.

But it's not always that simple!

Not all dealers accept credit cards, and of those who do, some will only allow you to pay off a portion of your car on card.

You might also find that there’s a fee for payments made on credit card which, depending on the percentage, could add up to a substantial additional cost.

Another consideration is that credit limits rarely rise above £5000, so you’ll probably find yourself limited to either a used car or a very small new car.

Decision time

Paying for your car with a credit card can be an affordable option, but to make it work takes real discipline to ensure you have cleared all payments within the introductory period, so be sure that you’ve weighed up all the pros and cons before jumping in.