How to pay when buying from a garage?

wazza2004

Sister looking to buy a used car from a dealer or a car warehouse. She wishes to pay outright and not take out finance. Can she pay the full amount on credit card? If she can pay part of the purchase using the credit card what is the minimum? She is looking to buy a car up to £11k. We think we will get more protection using credit card. I believe some dealers might charge a fee.

Thanks in advance for any replies.

wazza2004

Forgot to mention that we will pay off the credit card bill within the month so not accruing any interest.

jaydeeuk1

Probably let you put on £500 and then anywhere between 2.5 and 5% fee after that. Still cheaper than any none 0% finance.
You don't need to put whole balance on to get protection, £100 is enough I believe.

Edit - just read you have enough to pay it off after 2 months, so I'd either pay £100 on card and rest cash/debit, or if they offer their own finance and will give you a better price (and you aren't able to negotiate a match) take the finance and then pay it off immediately, again put £100 deposit on card

jellie

jaydeeuk1 wrote: »

You don't need to put whole balance on to get protection, £100 is enough I believe.

You don't need to put £100 on a credit card to get the protection - the item has to cost more than £100.

bod1467

I think there might be a minimum spend of £1, but the above is right ... it's only the cost of the item that needs to be more than £100. (I think there's an upper limit too, but unless you're buying a Ferrari then it's unlikely to apply).

jaydeeuk1

Ah right, knew the £100 figure was in there somewhere.

ElefantEd

Dealers often charge extra if you pay by credit card (2% or so). Not insignificant if the car is costing you £10k! So if you have the cash, debit card would be cheaper, and if the dealer is reputable then having to do a chargeback is highly unlikely.

vansboy

To save you the dealer applying a surcharge, for using the card, it would probably be best to deposit on the card...usually no surcharge at this stage..then balance by bank transfer.

What I will say though, is depending on the dealer, as well as the age of the vehicle, if it is still a reasonably new car, why aren't you buying from a franchised dealer, of the brand you are buying?

If you did have problems, even later in ownership, any chance of goodwill payments from the brand would be lost, once you are outside of their 'loop'.

It may well be worth re-thinking the supplier, if you are already anticipating issues.

VB

Rain_Shadow

bod1467 wrote: »

I think there might be a minimum spend of £1, but the above is right ... it's only the cost of the item that needs to be more than £100. (I think there's an upper limit too, but unless you're buying a Ferrari then it's unlikely to apply).

The item has to cost no more than £30k and you have to have paid no more than £25k on the credit card.


Not quite Ferrari territory.

agrinnall

When I bought my (new) car the dealer had no charge for credit card use up to £1000, so I paid the £250 deposit with a credit card and the balance on collection with a debit card.

wazza2004

vansboy wrote: »

To save you the dealer applying a surcharge, for using the card, it would probably be best to deposit on the card...usually no surcharge at this stage..then balance by bank transfer.

What I will say though, is depending on the dealer, as well as the age of the vehicle, if it is still a reasonably new car, why aren't you buying from a franchised dealer, of the brand you are buying?

If you did have problems, even later in ownership, any chance of goodwill payments from the brand would be lost, once you are outside of their 'loop'.

It may well be worth re-thinking the supplier, if you are already anticipating issues.

VB

I am sorry but your last two paragraphs confused me. You are saying she should only buy from a franchised dealer because they can offer more benefits?