Consumers turn to credit cards to buy cars
With the personal loan market in turmoil, consumers are increasingly buying large products on credit cards.
With the personal loan market in turmoil, consumers are increasingly buying large products on credit cards. Car dealers are reporting increased levels of buying by credit card, with loan declines the main reason. It is becoming increasingly difficult to source prime loan finance direct from banks, as the main high street financial organisations repair their balance sheets.
With credit limits of up to £15000 on some credit cards, a new or used car is well within the reach of the average consumer on a personal card. And with a proliferation of 0% balance transfer cards on the market, it is easy to switch the balance to another card without paying any interest. Some customers do this two or three times, paying very little at all for their car for up to 2 years.
In these times when car buyers are hard pressed to afford the latest model, it seems a bit of creative switching is helping to smooth out the ride.
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