Credit card restrictions for new car

taconite2

I was hoping to put down a deposit for a new car on a PCP finance deal using a 0% purchase credit card.

The idea was to use the cash I already have to put in a savings account rather than spend it on the interest for the finance scheme.

I've been told due to regulations they have to limit this to £1000.

I understand the system is there to protect people who clearly can't afford a new car but it's quite restrictive for people who can and just want to do clever things to avoid extra interest.

Any ideas? Is there a way to get cash off a credit card with minimal fees?

[Deleted User]

The limit for what is £1000?

ndf9876

taconite2 wrote: »

Any ideas? Is there a way to get cash off a credit card with minimal fees?

Money transfer to your bank then pay for the car that way - but you obviously don't get the S75 protection.

My suggestion would be to pay a deposit of over £100 on the credit card, then use the remaining balance on the card to do a money transfer. That is, of course, assuming you get 0% on balance transfers AND money transfers.

ndf9876

!!! wrote: »

The limit for what is £1000?

I think OP is saying that the car dealer will only accept a maximum of £1000 paid on a credit card.

taconite2

ndf9876 wrote: »

I think OP is saying that the car dealer will only accept a maximum of £1000 paid on a credit card.

Correct - they said something like they are being told they kinda have to now....maybe to cover their asses...

taconite2

ndf9876 wrote: »

Money transfer to your bank then pay for the car that way - but you obviously don't get the S75 protection.

My suggestion would be to pay a deposit of over £100 on the credit card, then use the remaining balance on the card to do a money transfer. That is, of course, assuming you get 0% on balance transfers AND money transfers.

Thanks - think I know what you mean there! Will look into this!

[Deleted User]

They can accept - or not - any amount they want. They'll be less inclined to accept large sums now the costs can't be covered by a fee.

[Deleted User]

It's because of the charges involved with processing credit card transactions.

I'm sure they either have to accept them (to any value) or not at all.

taconite2

They said it was due to irresponsible borrowing rules...

But it could be due to processing fees. But then I said could I use several 0% cards and put £1000 on each and they said no....

It's kinda annoying though. It's forcing people to use more finance to buy the car....What happens if I had 50k in cash in a briefcase?

ndf9876

https://www.moneysavingexpert.com/car-finance/buying-a-car-credit-card/

The relevant bit :

"Firstly, many dealers won't accept credit cards. Or, some will accept them, but will only allow you to pay a limited amount. Since 13 January 2018, companies can no longer charge a fee for accepting credit cards - though it's possible some dealers will refuse payment by credit card as they can no longer pass on the processing fee."

[Deleted User]

taconite2 wrote: »

It's kinda annoying though. It's forcing people to use more finance to buy the car....What happens if I had 50k in cash in a briefcase?

That would be ok. As long as the notes aren't bloodstained.