Car finance - Section 75

Keep_pedalling

Itasticz said:

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.   

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?

Be very careful in doing this as you are likely to incur unnecessary interest and fees. Typically you will pay 90 days interest on top of any interest owed at the point of early settlement. If you went with a PCP you would not be able to pay it off early until you had already paid off 50% of the finance through your monthly payments.

Why not simply go to a dealer who will take a CC deposit?

tasticz

Keep_pedalling said:

Itasticz said:

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.   

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?

Be very careful in doing this as you are likely to incur unnecessary interest and fees. Typically you will pay 90 days interest on top of any interest owed at the point of early settlement. If you went with a PCP you would not be able to pay it off early until you had already paid off 50% of the finance through your monthly payments.

Why not simply go to a dealer who will take a CC deposit?

With most of the car finances, there is no early repayment charge. I will check obviously. So, no 2 months interest charges like on unsecured loans. 

It does look like i'll have to go to a normal dealer than this big supermarkets. 

Cinch is another option but it is slightly overpriced by £1.5k ish but as there is no need to discuss with anyone and the website gives me the flexibility to part exchange, deposit and apply for any amount of credit, it may be my option.

Worst case ill tell the big super markets I am £1k short. get me finance for that amount for 5 years if you want to sell me the car 

DrEskimo

Keep_pedalling said:

Itasticz said:

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.   

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?

Be very careful in doing this as you are likely to incur unnecessary interest and fees. Typically you will pay 90 days interest on top of any interest owed at the point of early settlement. If you went with a PCP you would not be able to pay it off early until you had already paid off 50% of the finance through your monthly payments.

Why not simply go to a dealer who will take a CC deposit?

None of that bold is true. I think you are confusing this with VT, which is an entirely different matter 

You can pay off the entire PCP loan whenever you like. It's just a different form of HP (one with a larger final payment).

Vast majority of secure car finance I've seen has no fees for early settlement either.

But I agree. Find a car you like, secure it with a holding deposit using your CC, when you go to see it and decide you want to buy it, pay the remaining balance with direct debit. I've never had a problem, even with car supermarket places.

born_again

So just how much was the car?
Given S75 on your credit card has a max of £30K

tasticz

born_again said:

So just how much was the car?
Given S75 on your credit card has a max of £30K

£23.2k within the limit

born_again

Thanks. So long as there is a direct link to the garage selling the car, on the deposit, then it does not matter if any other finance is in place or not. But you may find that Credit Card co will point you back at any other finance co involved in the purchase. Especially if they have funded the vast amount of the loan.
But do not think of S75 as a get out of jail insurance policy. It is not..

tasticz

born_again said:

Thanks. So long as there is a direct link to the garage selling the car, on the deposit, then it does not matter if any other finance is in place or not. But you may find that Credit Card co will point you back at any other finance co involved in the purchase. Especially if they have funded the vast amount of the loan.
But do not think of S75 as a get out of jail insurance policy. It is not..

some protection is better than no protection.

born_again

tasticz said:

some protection is better than no protection.

It is, but too many people think that S75 is a Insurance that will payout for everything.

Tokmon

tasticz said:

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?

I bet if you went in there and said you want to pay £1 on credit card and the rest some other way they accept and you won't buy the car unless you can do that then i can't see them telling you no.

In the past i have paid £10 on credit card to a garage that said they don't accept credit cards at all but they did it because they fees would be so small and they didn't want to loose the sale.