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I am in market to buy new car but I am a little short on money. I could finance the car but if buy on cash, I will qualify for additional savings up to $1000. Furthermore even if I finance the car directly, I will be in position to pay it off sooner in few months so why pay $1000 to finance it.

I know there are credit card offers which allows 0% APR balance transfer with no balance transfer fee. But since I don't have any current debt right now, I am not sure if I can take advantage of it? My question is can I use such offers and apply for card and buy new car with it? Mind you, car dealers need check not credit card so it has to be sort of cash advance (I don't know if it will be balance trasnfer?). Thanks.

The question was for US.

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    Do you need the new car now? If you'll be in a position to pay it off in a few months (as I interpret what you said above) why not wait those few months, save up the money and pay cash for the car? – NeutronStar May 27 '15 at 19:31
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    "I know there are credit card offers which allows 0% APR balance transfer with no balance transfer fee." These are typically made to people who are in middling financial state and carrying revolving credit card debt. If you pay off your cards every month, you are unlikely to get such an offer. Also, be aware that if you have current purchases on a credit card that you will pay off in full when the monthly statement comes, then the only way to avoid interest on purchases is to pay off the next monthly statement in full, including the 0% loan. – Dilip Sarwate May 27 '15 at 20:20
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    See this answer for some information on how 0% interest loans actually work. – Dilip Sarwate May 27 '15 at 20:22
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    @Joshua I do the car ASAP and memorial day sales are still going on. I need the car the most in summer so don't want to wait and the summer pass on me. – zadane May 27 '15 at 20:38
  • How much are you thinking of paying for a car? To begin with, whenever you pay more than about $700 for a car, you're simply throwing money in the toilet and flushing. – Fattie Jul 7 '16 at 14:14
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It really depends on the exact wording of that zero rate offer.

Some specifically state they are to be used for paying other debt. Others will have wording such as "pay other debt or write yourself a check to pay for that next vacation, or new furniture."

Sorry, it's back on you to check this out in advance.

  • That is the sticking point. I thought previously these would mean writing a check to your own bank account or clear debt but I thought congress passed some laws that it can ONLY be used for existing debt. But I will pay attention to the wording. – zadane May 27 '15 at 18:17
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    No, I've seen offers of both types, some do just what you ask, others don't permit it. – JTP - Apologise to Monica May 27 '15 at 18:19
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    @zadane if it is balance transfer when you apply - it is always to pay off another card. If it is a convenience check mailed to you - you can usually do whatever you want. – littleadv May 27 '15 at 18:19
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    Often the convenience checks have their terms printed on them (or attached to the same paper that the check tears from) that make it clear exactly how the check will be treated. I've even 2 different types of checks, each corresponding to a different offer, that were color coded, in the same envelope. – briantist May 27 '15 at 18:32
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    @zadane: I don't think I've heard of a convenience check that can be used for ordinary purhcases but is not treated as a cash advance. Are you sure the credit card offers 0% on cash advances? – BrenBarn May 27 '15 at 19:51
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You do not say what country you are in. This is an answer for readers in the UK.

Most normal balance transfer deals are only for paying off other credit cards. However there are "money transfer" deals that will pay the money direct to your bank account. The deals aren't as good as balance transfer deals but they are often a competitive option compared to other types of borrowing.

Another option depending on how much you need to borrow and your regular spending habits is to get a card with a "0% for purchases" deal and use that card for your regular shopping, then put the money you would have spent on your regular shopping towards the car.

  • A good reminder of the perennial problem on this site, that questioners often omit their jurisdiction, making it impossible to answer. – Fattie Jul 7 '16 at 14:15

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