Car Purchase

SCB58

I'm buying a used car over 40k, this is being funded by trade in value of my current car of 20k, 1k deposit paid on my credit card and the balance paid via debit card. Am I covered by either section75 or 75a?
Will I get protection on the FULL purchase price?
Can anyone help with this query.

Many thanks

eskbanker

You could potentially get coverage under section 75a but only if you restructure the financing carefully to involve a qualifying loan instead of the way you've outlined, see http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#over30k

derps

To expand on your specific questions, OP, you will not be entitled to any protection under Section 75 because of the total cost of the car. Purchases up to £30k are covered (assuming the other criteria apply!) regardless of what is spent on the card, so you can spend £1 on the card and be covered for something that cost £10k! This even extends to whatever loss you suffer which potentially be more than the £10k you spent depending on the circumstances.

S.75A is about purchases financed by agreements that are created for the purpose of making the purchase. Credit cards are for ongoing use to finance various retail transactions and therefore don't attract protection of S.75A as the credit agreement isn't linked to the purchase. You would have to arrange finance as part of the purchase for S.75A to apply, such as a hire purchase agreement specifically for that car.