Car finance - Section 75

tasticz

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many car dealers will accept deposit on credit card. This would have made life easy so in terms of getting finance and paying it off.

• If I purchase a car on finance and pay it off in full, do I still have section 75 protection or is it only there when he "finance" is running live that protection exists?

• If protection only exists during finance term, can I pay 95% of the finance amount in cash to finance company and request them to reduce the monthly payment for the remaining 5% so that it is paid over 48/60 months so that way I have section 75 coverage for full?

What is the best approach please?

Grumpy_chap

tasticz said:

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many will accept deposit on credit card.

As I understand it, many car dealers will accept deposit by credit card, a small sum such as £500. 

The dealer won't often want much more on CC because of the charges.   Equally the dealer won't want a purchaser willing to commit to walk out without doing so when the customer only has  CC upon the person.

tasticz

Grumpy_chap said:

tasticz said:

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many will accept deposit on credit card.

As I understand it, many car dealers will accept deposit by credit card, a small sum such as £500. 

The dealer won't often want much more on CC because of the charges.   Equally the dealer won't want a purchaser willing to commit to walk out without doing so when the customer only has  CC upon the person.

I have updated my post, can you shed some light on validity of section 75 protection if i was to take finance and pay it off in full? Do i still get 6 years protection if i pay in full?

Keep_pedalling

tasticz said:

Grumpy_chap said:

tasticz said:

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many will accept deposit on credit card.

As I understand it, many car dealers will accept deposit by credit card, a small sum such as £500. 

The dealer won't often want much more on CC because of the charges.   Equally the dealer won't want a purchaser willing to commit to walk out without doing so when the customer only has  CC upon the person.

I have updated my post, can you shed some light on validity of section 75 protection if i was to take finance and pay it off in full? Do i still get 6 years protection if i pay in full?

If you are talking about cancelling in the first 14 days then no you are not covered.

tasticz

Keep_pedalling said:

tasticz said:

Grumpy_chap said:

tasticz said:

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many will accept deposit on credit card.

As I understand it, many car dealers will accept deposit by credit card, a small sum such as £500. 

The dealer won't often want much more on CC because of the charges.   Equally the dealer won't want a purchaser willing to commit to walk out without doing so when the customer only has  CC upon the person.

I have updated my post, can you shed some light on validity of section 75 protection if i was to take finance and pay it off in full? Do i still get 6 years protection if i pay in full?

If you are talking about cancelling in the first 14 days then no you are not covered.

what would be the best way forward then? Pay the balance off after 14 days?  Can I pay full balance or should I only pay 95% or what should I do to get this protection?

If possible, I want to pay the least interest but get the protection if possible. I have cash to pay in full for car. otherwise, it is cash down no credit lol

Grumpy_chap

tasticz said:

Grumpy_chap said:

tasticz said:

Just following on from my other post: https://forums.moneysavingexpert.com/discussion/6285420/big-motoring-world-pressurised-selling-addons-wasted-2-5-hrs#latest


I don't think any or many will accept deposit on credit card.

As I understand it, many car dealers will accept deposit by credit card, a small sum such as £500. 

The dealer won't often want much more on CC because of the charges.   Equally the dealer won't want a purchaser willing to commit to walk out without doing so when the customer only has  CC upon the person.

I have updated my post, can you shed some light on validity of section 75 protection if i was to take finance and pay it off in full? Do i still get 6 years protection if i pay in full?

Sorry, I can't comment on that as I do not know.

I simply commented on the part where I have an understanding - willingness, or otherwise, of Dealers to accept CC for deposit. Obviously, that can vary between Dealers, so exact policy needs to be confirmed with the Dealer involved.

DrEskimo

I don't understand why you are considering taking out the finance if they are not offering any incentives for it.

Put the holding deposit on a credit card and then tell them you want to purchase the rest via direct debit.

tacpot12

My understanding is that if you buy a car on HP, the dealer actually sells the car to the finance company, and the finance company lets you use the car and buy it by making payments (you onlyown the car when you have made the final payment). So you have actually bought the car from the finance company and all your consumer rights are with them and not the dealer.

The contract between the dealer and the finance company will allow the finance company to return the car under certain circumstances, but this is of no concern to you as you will have your rights under the Consumer Credit Act 2015 to return the car to the finance company. What they do with the car after that is their problem.

I would expect these Consumer Rights continue after the finance deal has ended because the finance company sold you the car, so they remain laible just like a dealer would remain liable after you had paid a dealer for the car in full.  I've no idea how a claim for mis-representation work as the finance company hasn't made any representation to you - effectively they used the dealer to do all their marketing for them. 

The upshot of this is you need to read any finance paperwork VERY carefully, and possibly pay a solicitor to explain your rights under differnt situations. This seems to be incompatible with a limited time offer to the dealer. Your best hope is to get the dealer to email you a copy of the finance agreement so that you can study it before deciding whether to buy on HP, or with cash from the dealer. Once you know you ave happy to sign such a contract, you can then make a limited time offer. Just make sure that the contract you sign is exactly the one you have seen and had checked. (I would print out the copy you are sent and a copy of this with you - you should only sign the copy you have checked - the dealer will belly-ache about this, but don't sign anything they give you - only sign the  copy you have checked - it's up to them to get the finance company to accept it).   

Paying the deposit on credit card and buying the car direct from the dealer seems to offer the best of both worlds as you have the additional S75 protection and the dealer is also clearly responsible to you as well. I expect that the S75 protection continues after the credit card balance is cleared as people make S75 claims without having to prove that they still owe some amount of the payment that was made using their credit card.   

You might find this link useful: Car finance (financial-ombudsman.org.uk)

Keep_pedalling

tacpot12 said:

My understanding is that if you buy a car on HP, the dealer actually sells the car to the finance company, and the finance company lets you use the car and buy it by making payments (you onlyown the car when you have made the final payment). So you have actually bought the car from the finance company and all your consumer rights are with them and not the dealer.

The contract between the dealer and the finance company will allow the finance company to return the car under certain circumstances, but this is of no concern to you as you will have your rights under the Consumer Credit Act 2015 to return the car to the finance company. What they do with the car after that is their problem.

I would expect these Consumer Rights continue after the finance deal has ended because the finance company sold you the car, so they remain laible just like a dealer would remain liable after you had paid a dealer for the car in full.  I've no idea how a claim for mis-representation work as the finance company hasn't made any representation to you - effectively they used the dealer to do all their marketing for them. 

The upshot of this is you need to read any finance paperwork VERY carefully, and possibly pay a solicitor to explain your rights under differnt situations. This seems to be incompatible with a limited time offer to the dealer. Your best hope is to get the dealer to email you a copy of the finance agreement so that you can study it before deciding whether to buy on HP, or with cash from the dealer. Once you know you ave happy to sign such a contract, you can then make a limited time offer. Just make sure that the contract you sign is exactly the one you have seen and had checked. (I would print out the copy you are sent and a copy of this with you - you should only sign the copy you have checked - the dealer will belly-ache about this, but don't sign anything they give you - only sign the  copy you have checked - it's up to them to get the finance company to accept it).   

Paying the deposit on credit card and buying the car direct from the dealer seems to offer the best of both worlds as you have the additional S75 protection and the dealer is also clearly responsible to you as well. I expect that the S75 protection continues after the credit card balance is cleared as people make S75 claims without having to prove that they still owe some amount of the payment that was made using their credit card.   

You might find this link useful: Car finance (financial-ombudsman.org.uk)

You are still buying the the car from the dealer, you pay them the deposit and the finance company pays them the rest.

Your consumer rights allow you to cancel the finance agreement in the first 14 days, and cancelling the finance contract means in effect it never existed. 

tasticz

DrEskimo said:

I don't understand why you are considering taking out the finance if they are not offering any incentives for it.

Put the holding deposit on a credit card and then tell them you want to purchase the rest via direct debit.

because places like car giant / big motoring world don't accept credit card payment for the car but happily take it for the add-ins. so the other option is to finance a small amount for the car to get that additional coverage?

tasticz

tacpot12 said:

Paying the deposit on credit card and buying the car direct from the dealer seems to offer the best of both worlds as you have the additional S75 protection and the dealer is also clearly responsible to you as well. I expect that the S75 protection continues after the credit card balance is cleared as people make S75 claims without having to prove that they still owe some amount of the payment that was made using their credit card.   

Thanks. This line is interesting as this is exactly what I am thinking of. 

Keep_pedalling said:

tacpot12 said:

My understanding is that if you buy a car on HP, the dealer actually sells the car to the finance company, and the finance company lets you use the car and buy it by making payments (you onlyown the car when you have made the final payment). So you have actually bought the car from the finance company and all your consumer rights are with them and not the dealer.

The contract between the dealer and the finance company will allow the finance company to return the car under certain circumstances, but this is of no concern to you as you will have your rights under the Consumer Credit Act 2015 to return the car to the finance company. What they do with the car after that is their problem.

I would expect these Consumer Rights continue after the finance deal has ended because the finance company sold you the car, so they remain laible just like a dealer would remain liable after you had paid a dealer for the car in full.  I've no idea how a claim for mis-representation work as the finance company hasn't made any representation to you - effectively they used the dealer to do all their marketing for them. 

The upshot of this is you need to read any finance paperwork VERY carefully, and possibly pay a solicitor to explain your rights under differnt situations. This seems to be incompatible with a limited time offer to the dealer. Your best hope is to get the dealer to email you a copy of the finance agreement so that you can study it before deciding whether to buy on HP, or with cash from the dealer. Once you know you ave happy to sign such a contract, you can then make a limited time offer. Just make sure that the contract you sign is exactly the one you have seen and had checked. (I would print out the copy you are sent and a copy of this with you - you should only sign the copy you have checked - the dealer will belly-ache about this, but don't sign anything they give you - only sign the  copy you have checked - it's up to them to get the finance company to accept it).   

Paying the deposit on credit card and buying the car direct from the dealer seems to offer the best of both worlds as you have the additional S75 protection and the dealer is also clearly responsible to you as well. I expect that the S75 protection continues after the credit card balance is cleared as people make S75 claims without having to prove that they still owe some amount of the payment that was made using their credit card.   

You might find this link useful: Car finance (financial-ombudsman.org.uk)

You are still buying the the car from the dealer, you pay them the deposit and the finance company pays them the rest.

Your consumer rights allow you to cancel the finance agreement in the first 14 days, and cancelling the finance contract means in effect it never existed. 

I am not proposing to cancel the transaction within 14 days though.

I will happily pay that interest accrued for 14 days and pay it off in full in 15th day if it gives me the section 75 protection for 5 years

or pay 95% balance and keep 5% but I wonder if the finance company will allow me to reduce the monthly payment so it lasts 60 months.

Does protection continue once the balance is paid off?