Extra protection of consumer credit act?

teabelly

If you were intent on buying a used car and did the following when would the consumer credit act not apply?

Paid refundable holding deposit (£500 for example) with credit card, paid for vehicle in full with cash/bankers draft. Deposit then refunded to credit card.

As above but borrowing the full amount to pay for the vehicle via personal loan. Deposit then refunded to credit card.

As above but paid for car in full with debit card or bank account transfer instead of cash/bankers draft and credit card holding deposit refunded.

Does borrowing the full purchase amount via a personal loan give you any extra protection? Would using the dealer's finance facilities offer more protection still or wouldn't it matter?

The whole used car purchase thing seems like a potential for total headache so I wanted to make sure when extra protection applies and whether there are any circumstances where you'd think you'd be ok but won't be or vice versa.

InsideInsurance

You are presumably talking about S75 protection?

For it to apply then there must be a direct connection between the finance and the purchase and as such a personal loan doesnt provide anything as the cash goes to you first and not to the merchant.

Remember you only need to have paid towards the vehicle with a credit card for protection to apply and so even if you paid £1 by CC and the balance by cash/bankers draft then you are protected in the same way as if you had paid for all of it by CC (though without the merchants high fees)

Also remember that if by paying the full amount you enter into an arranged overdraft you are also protected (assuming your over draft isnt too large to be covered by the CCA)

I personally dont know the rules on refunded holding deposits but I for the sake of paying £1 on CC for the car itself and the 2p fee the car company may charge for doing this wouldnt hang my hat on it alone

molerat

Paying part with a CC is the preferred clear cut no argument CCA protection method.

Dr._Shoe

I would pay the deposit by credit card and then use the returned deposit to offset the balance so therefore having no refund to the credit card. Having said that, a refund is the equivalent to paying the balance in full, isn't it?