Buying a new car with partial payment on credit card

anthony_saver

Hello,

I've got a question about buying a new car. I don't need finance, so I'll be a cash buyer paying for most of the balance with a debit card. The trouble I can see with this is that if the dealer or the manufacturer (VW in my case) goes bust before my car is delivered then I'll be left high & dry. With all this talk about GM, Ford and other car companies in trouble, I'm having to entertain this thought.

If I make a partial payment of £500 with a credit card, would the consumer credit act oblige the credit card company to refund £500 if the car wasn't delivered to me - or the full amount for the car? The dealer charges 2.5% on credit card purchases above £500 so that's a disincentive for transferring money from my bank account to my credit card account in order to pay in full using the credit card.

I want to avoid car finance because VW aren't offering 0% deals these days.

Anthony

cash-magnet

I stand to be corrected but I think the minimum payment of £100 will get you some support of your credit card company as that is the minimum to "activate" Section 75 protection on purchases. You only need to pay this much on your card, and it avoids that nasty 2.5% surcharge. Perhaps others with more knowledge can expand on this more please?