Are you or ar you not covered ?

steveyt_2

Need to settle an argument please....

If i went to a car dealer and paid in advance for a car on CREDIT CARD that the dealer was going to purchase from the car auctions and the car never materialised or the man himself went out of business, would i still be covered under Section 75.

My friend says no due to using a 3rd party if you like but i believe i would as you have genuinely made a purchase with all the necessary receipts for proof of purchase.

Thanks in advance.....

[Deleted User]

Yes, you'd be covered.

steveyt_2

Thanks. People at the bank told my mate he would not be covered, but to me, if you have a genuine receipt that the payment went through even if it was not a direct purchase with the car auctions themselves then you have still entered into a contract and if the goods never show up then i say you can claim the money back.

[Deleted User]

You'd be buying from the dealer, not from the auction house.

Same way you'd be covered if you ordered a TV from Dixons and it didn't turn up. They buy them from China or wherever, but that's not your problem.

steveyt_2

Really interested in other peoples views on this please.....

[Deleted User]

You would be covered, so long as the car's total price is between £100 and £30,000.

You have a contract with the dealer to buy the car. You paid the dealer for the car. End of story.

Whether the dealer is buying it from the auctions, the manufacturer, Auto Trader, Uncle Bob, some guy down the pub, or whatever, is of no interest to you (or the credit card company) in this matter.

I believe that the only exception would be if you had signed a contract effecting that this "dealer" was actually acting as a broker, and arranging the sale between you and the auction house - but I suspect that would only apply in a rare case.

steveyt_2

Thanks for the last mail Billbennet...... this car dealer is a sole trader that can acquire cars and can buy direct from the auctions. If my friend was to pay him a deposit for a car (ON CREDIT CARD) and then when he gets the car he pays the balance on arrival (in the same way you would put a deposit down on a kitchen and pay the rest on completion).

My mate would get a receipt when paying on credit card and another receipt on the cars arrival.

I say if the car doesn't arrive or the man goes out of business then he still would be covered via the credit card but if anyone thinks different can you please state why. Thanks !

jonesMUFCforever

If you don't believe the advice here get your friend to phone up his credit card provider and ask?

Are you sure this is not some kind of homework question?

Anthorn

Need to look at this in more detail: If the dealer purchased the car from the auction in your name or as your authorised agent, you are not covered. But if the car was the dealer's property and you bought it direct from the dealer then you are covered.

In this case an agreement was made with the dealer to buy a car at the auction and payment tendered to the dealer before the car was acquired. Therefore the dealer was acting as the agent of the purchaser and there is no cover under S.75 whether the car was actually acquired or not.