Hi - I would opt for the Loan. Its a fixed rate over a fixed period, and the actual amount you pay back difference is minimal. The creditcard deal looks ok. What would you do, pay with another credit card's cheque, then transfer the balance on to the 3.7%?

Hello Ziknik Thank you for your advise.

Which credit card are you using? I could do with a new car myself. 3.2 life of balance is a great offer. A credit card balance transfer of 3.2% for the life of the balance is a better option than a loan because it will be lower interest. The best loan rates around are over 5%. ALSO: The credit card has other advantages. You can increase your repayment any time you want or pay different amounts every month to reduce your balance faster and pay less total interest. You must pay a minimum payment of around 2-3% depending on the card Terms and Conditions. Check your card T&Cs. AND: The credit card minimum payment will probably be less tahn the loan repayment if you find yourself short of money for a few monthe. £7.5K over 4 years is around £190 per month. A 2 % minimum payment on a credit card of 7.5k is £150 for the first month and will reduce every month. BUT: The 3.2% interest only works if you currently owe nothing on your card and you don't expect to spend anything on it. If you already owe the credit card company (say) 2K at 15.9%, then you are better off with a loan because (genrally) the credit card company will charge you 15.9% on the 2K causing this high interest rate debt to increase every month. You will also be charge interest on the 3.2% debt but, they will take your monthly payment off the 7.5K at 3.2% causing the low interest rate to debt to decrease. Effectivley you will find that you have cost you self a lot more than the loan. Same is true if you spend on the card after you have taken out the low rate balance transfer. ALSO: Make sure you don't go over your crdit card limit. Stay a couple of hundrerd (at least) below your credit limit. Balance transfers don't get an interest free period (purchases usually get 59 days interest free on them). If you take a 7.5k balance transfer from a card that has a 7.5k limit (a responsible lender would not let you do this) you will be over your credit limit by the time your statement arrives because of the interest. This will means you get charged and probably loose the special balance transfer rate.

Hello Whitbybunny The credit card company will just transfer the money direct to my bank account I can then write a cheque for the car.

You state that the rate is 3.2% for balance transfers, so do you have an existing credit card that you will purchase the car on and then switch the balance to the new card with the 3.2% rate. As it is a balance transfer rate, that is the only way you would benefit from it. You need to look at the purchases rate.....

Could someone advise me. I intend to purchase a car for £7500 I can get a personal loan at 6.2% but my credit card company are offering 3.2%APR on balance transfers for the life of the transfer no transfer fee. If I make the same monthly payment amount over 4 years as request by the loan company would I pay the credit card off in the same amount of time?