Car brokers and Section 75

ms1122

We're looking for a new car, and the prices offered by some car-brokers are very tempting. Some of the car-brokers only introduce you to a main-dealer, and in that case I'm quite confident (from what I have read) that you can get good financial protection via section 75. However, the best deals appear to be from broker where you buy from a financial company, but the car is still "supplied through a main dealer". My question is, are you still protected by Section 75 in this case.

To give some background: I think I read somewhere that if you book flight tickets through a travel agency, and the airline goes bankrupt, that you are not covered by Section 75 (because you deal with the agency, not with the airline).

wealdroam

You haven't said so, but are you planning on paying part of the purchase price using a credit card, or some other form of credit?

If so, and you actually pay the selling dealer, then as you say, you may be covered by 'Section 75'.

'Section 75' actually comes from Section 75 of the Consumer Credit Act 1974, so if the 'financial company' you mention is offering credit under the Consumer Credit Act 1974, you may be covered.

Might be an idea to have a look at MSE's Section 75 Refunds article for further detail.

ms1122

Thanks for your reply. Yes, the idea is that we would pay the deposit on credit card, and indeed, if we would pay the deposit to the dealer that will be supplying the car, then I think we are covered by Section 75.

However, if we buy via the "finance company" or "from the broker themselves", we would still "pay cash" (so not take out a loan), but several of these websites mention that the car would be supplied by/through a main dealer.

So what is not clear is: do we get the car from (and pay) the broker/finance company? Or do we pay the broker/finance company, who then pays the main dealer to supply the car (in which case I doubt we would be protected by Section 75)?