Best way to purchase car on credit card

luiza8

Good afternoon. I am looking to buy a new car of around £15k. I have the cash but aware that I get more protection if I pay on credit card. My plan is to buy the car on the credit card and pay it off instantly.

The problem is my credit limit with my current provider is £2800. I bank with an online only bank and have my salary paid into that, rather than the bank the credit card is with.

I am going to contact my bank to see if they can suggest anything. I don't want to call up and apply for a £15k credit limit only to be declined potentially. 

Does anybody know of any temporary way to increase credit limit, or any suggestions how I can go about trying to get a card with a £15k limit (temporary limit is fine).

[Deleted User]

If the seller accepts a card, just pay a deposit with it.

It's unlikely they'll accept more than a small amount in any case.

MovingForwards

First of all check the car dealer will take full payment via a credit card, most only take small limits.

Even paying £100 on the CC and the rest in cash / debit card / bank transfer provides the same benefits as if you'd paid the £15k by CC.

eskbanker

Two things - most car dealers will be reluctant to accept full payment of that sort of amount by credit card (as they're no longer allowed to levy a surcharge to cover their additional costs in doing so), but, more importantly, you don't need to pay it all by card to qualify for the section 75 protection anyway.  Any payment, even a penny, on a purchase valued between £100 and £30K, entitles you to s75 protection for the full value of the transaction.

https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/

born_again

MovingForwards said:

First of all check the car dealer will take full payment via a credit card, most only take small limits.

Even paying £100 on the CC and the rest in cash / debit card / bank transfer provides the same benefits as if you'd paid the £15k by CC.

Even paying 1 pence will give you S75 cover. Just make sure you have receipts for the balance of payments.

MrFrugalFever

As mentioned above. S75 covers you for entire amount regardless of the amount paid on the card. There's a 3% transaction fee for use of credit card which will invariably limit the amount dealers are willing to allow you to pay with it.
 If you are looking to buy a 'new' car is the car 'new to you' or brand new and unregistered? If it's brand new and unregistered then the interest rate will invariably be very little and often less than a credit card and the debt is secured against the car not you. I would be VERY surprised if you can go from £2,800 to £15,000 in one hit. Not sure on why you would want to do it this way?

debsy42

When we bought our car I paid the whole lot on credit card (similar amount to what the OP wants), the dealer was more than happy and said they weren't allowed to charge a transaction fee anymore for credit card payments. Was good for us as we had the protection and saved us roughly £400 we would have paid previously for using the credit card.

luiza8

It's a 'new to me' 2019 car.

Thanks very much everyone for confirming the £0.01 spend on >£100. I will simply put the deposit on the credit card and pay the rest cash. I was looking into getting a PCP deal if the dealership offered a deposit contribution, then paying it off in full the day after. Some places offer it on second hand cars, some dont.

pbartlett

make sure who you pay does nor sever the link otherwise if you pay via an intermediary there will be zero protection.

J_B

When I bought my last car - just over a year ago - the max they would take was 1K on a (non-amex) C Card

So, we paid 1K on the cc, 1K on a debit card and the balance on finance to get 2 free services and extra warranty.