Buying a car with a credit card from a dealer...

CentreStage

Hello everyone

Tomorrow I'm going to buy a new car. I've taken out a loan to buy it and the cash is now sitting in my account.

My question is, if I pay for part of the car with my credit card, do any / all of the credit card guarantees kick in?

This is a second hand vehicle and I'm buying it from a dealer. I don't know whether that makes any difference. Does "Section 75" still apply to this purchase?

Thank you for your help in advance.

sfax

You only need to pay part of it on a credit card and yes, you will be covered by Section 75. Others may be able to give you more details

YorkshireBoy

sfax wrote: »

Others may be able to give you more details

The price of the vehicle needs to be less than £30K.

lisyloo

Yes section 75 kicks in, but you only have to spend a small amount on the card to qualify.
If you pay the whole lot you may well find the dealer wants to charge a fee circa 2.5% for covering the costs.

The only problem is that if you then pay the rest with another method e.g. debit card, then the credit card company may expect you to use the card with the maor method of payment first (debit cards don't do section 75 but can do chargebacks).

I had a dispute last year and Capitalone who'd I'd spent £1 with said they would expect me to go to the debit card company first, although of course you can't for section 75.

I would plan to pay a small amount on the CC.

poppasmurf_bewdley

When I bought my present car, I paid a £500 deposit by credit card to secure my rights under section 75 and to ensure that if anything happened to the dealer between putting down the deposit and collecting the car, I would be protected.

I think it's a very sensible thing to protect yourself by doing this.