Cash purchase

wymondham

Is it best to buy a car with cash or credit card. I don't have a credit card but if the protection is better then it might be worth getting one? How much in % would I have to use from card/cash in order to get protected? thanks!!

Does a debit card offer the same protection?

fred990

Recently ordered a new car, paid the deposit by credit card. From what I understand (hopefully) that's good for protection. Debit card would be like paying cash I guess?

engineer_amy

as long as the car costs between £100 and £30,000 and you pay part of it on a credit card, then you have section 75 coverage and the card provider is jointly liable should something go wrong. Doesn't matter how much you put on the credit card, could only be £1 deposit and you are covered.


with a debit card, you don't have the same protection. you can do a chargeback and your bank can reclaim the money from the retailers bank, there are no guarantees of recovering the money, or the retailer could dispute this and you may still owe the money

UncleZen

Last time a bought a car, in 2016 the dealer specifically refused to take credit cards (possibly for the section 75 reason, is my theory)

Manxman_in_exile

UncleZen wrote: »

Last time a bought a car, in 2016 the dealer specifically refused to take credit cards (possibly for the section 75 reason, is my theory)

I don't think I'd buy a car from a dealer who doesn't accept CC payment

engineer_amy

UncleZen wrote: »

Last time a bought a car, in 2016 the dealer specifically refused to take credit cards (possibly for the section 75 reason, is my theory)

Theres also the processing fees charged by visa/amex/mastercard. these can be quite high, a few percent of the total transaction, could just be a blanket policy to reduce costs.


but I would question a dealer who wouldn't accept a CC, even for a deposit

Ebe_Scrooge

As above, you'll find that the majority of dealers will refuse to take the full amount on CC due to the high costs they have to pay (in the past, some would accept CC but pass the costs on to you, which they're no longer allowed to do).

But as long as the car is between £100 and £30,000, you only need to pay £1 on the card to be covered by Section 75 protection. In practice, most dealers are willing to accept the deposit payment by card (e.g. £100 or £500 or whatever it may be). But as long as you've paid at least part of the cost on the card, you're covered.

cajef

When I bought a brand new car for cash from a main Honda dealership they would only accept a CC for the deposit, the remainder had to be bank transfer or cheque and if a cheque they would only release the car after it had cleared, personally it was not a big deal and I arranged a bank transfer on the day I picked the vehicle up.