If I buy a car from a dealers should I pay by credit card?

RedBalloon

Obviously I would pay the balance off immediately but do credit cards offer any extra protection in this circumstance?

TIA

Inactive

I think that you will find the dealer will charge an additional surcharge for paying by CC of around 3% of the total.

vikingaero

Most dealers will charge as Inactive has said, although they will allow the deposit to be paid by CC without charge.

If the dealer goes bust then you can reclaim your deposit from the CC company. But I think if you want to rely on the CC indemnity (section 75?) for faulty goods then some exclude vehicles.

RedBalloon

Many thanks.......

thescouselander

Inactive wrote: »

I think that you will find the dealer will charge an additional surcharge for paying by CC of around 3% of the total.

Not always, it depends on the dealer. When I changed the car last I paid with a credit card at no extra cost.

Inactive

thescouselander wrote: »

Not always, it depends on the dealer. When I changed the car last I paid with a credit card at no extra cost.

Well they obviously lumped the 3% in to the price of the car then.

motorguy

Inactive wrote: »

Well they obviously lumped the 3% in to the price of the car then.

+1

Was thinking that. If the dealer was happy to give away that much of his profit margin so easily (£300 on a £10K car), he must have had a lot to work with. :eek:

Dick_Van_Dyke

If you pay over £100 by credit card you are protected by the consumer credit act for the full purchaase.

Therefore put a deposit or nominal amount on the credit card at 3% fee and pay the rest in some other manner.

Hintza

!!!!!!_Van_Dyke wrote: »

If you pay over £100 by credit card you are protected by the consumer credit act for the full purchaase.

Therefore put a deposit or nominal amount on the credit card at 3% fee and pay the rest in some other manner.

This is always quoted but I do wonder if this in fact correct with cars. I just can't see dealers willing to take the risk of a chargeback. Or does other consumer law in reality cover the dealer?

ahillsy

Also, some dealers won't charge a fee for CC up to a certain limit (which I've found to be £1000). I wanted to stick as much on CC as possible, to pay off in full with the next bill, just to have it sitting in my savings account longer

derrick

Hintza wrote: »

This is always quoted but I do wonder if this in fact correct with cars. I just can't see dealers willing to take the risk of a chargeback. Or does other consumer law in reality cover the dealer?

Chargeback is not the same as Section 75.

Whilst this might not be a total authoritative source WHICH? ADVICE, I would be pretty sure they won't be wrong. By only paying as little as £1. on the CC you are covered for the whole amount under S75.and won't incur much in the way of CC fees.

Quote;- "However, you don’t have to have paid the full amount on your credit card – the card company is liable even if you made only part of the payment (a deposit, say) on your card. And this part-payment can be as little as £1. It is the value of the goods you are buying that is key, not the amount paid on the card. "

And from the same source more relative to this thread;- "For example, if you bought a car from a small local dealer and paid a £500 deposit with your credit card and the balance of £4,000 by cheque, you would be covered for the whole £4,500 under section 75 if the dealer went bust before you received the car."