Protection on purchase of new car under section 75a

Sandtree

Manxman_in_exile said:

The only thing I can see is in 75(a)(5) where it says the loan must be exclusively to finance the purchase of specific goods.  Could it be argued that a loan for £1 can't be exclusively for the purchase of specific goods whose value is in excess of £30k?  But so long as the £1 doesn't contribute to the purchase of anything else(!) I don't see why it can't be exclusively for the purchase of a £30+k car?  (ie you can't buy anything else with the loan, but the loan doesn't have to fund the full price)

Certainly my reading of that is you can't buy a car for £40,000 and get a loan for £45,000 and use the surplus for something else. Hopefully @born_again will confirm their intent

born_again

Sandtree said:

Manxman_in_exile said:

The only thing I can see is in 75(a)(5) where it says the loan must be exclusively to finance the purchase of specific goods.  Could it be argued that a loan for £1 can't be exclusively for the purchase of specific goods whose value is in excess of £30k?  But so long as the £1 doesn't contribute to the purchase of anything else(!) I don't see why it can't be exclusively for the purchase of a £30+k car?  (ie you can't buy anything else with the loan, but the loan doesn't have to fund the full price)

Certainly my reading of that is you can't buy a car for £40,000 and get a loan for £45,000 and use the surplus for something else. Hopefully @born_again will confirm their intent

Way out of my league is S75A as not related to cards... Hence the quote from the Gov.
You would need someone that works in the finance area. 


My guess, and I would agree with your legal take, would be it would only cover the purchase But you would not get any extra cash as the loan would purely be for the purpose of the car purchase. 

Grey_Critic

You say you are paying cash - I trust that is either Dedit Card - Cheque - Bank Transfer. Paying in cash is illegal under Money Laundering Regulations.

AdrianC

Grey_Critic said:

Paying in cash is illegal under Money Laundering Regulations.

No, it isn't.

born_again

Grey_Critic said:

You say you are paying cash - I trust that is either Dedit Card - Cheque - Bank Transfer. Paying in cash is illegal under Money Laundering Regulations.

Really? 🤦‍♂️

Sandtree

Grey_Critic said:
Paying in cash is illegal under Money Laundering Regulations.

Better tell my corner shop, they only take cash!

Accepting cash is never illegal in itself... you must do appropriate checks to ensure the source of the funds and what are appropriate checks go up as the amount of cash goes up but there are people who buy much more expensive thing than cars with cash