Paying new car part credit card

roken86

Hi all.

My housemate is about to guy and buy a new car and they are insisting on bank transfer for the full amount. 

I've told him to do at least £100 on credit card. He doesn't have one so is there any reason he couldn't use mine for the £100 to get the section 75 protection? 

Can't find any info on if the person paying the funds and owner has to be same as the credit card name. 

Any help appreciated. 

neilmcl

He wouldn't be covered for a section 75 as he's not the credit card holder, pretty much simple as that.

Think about it, how's he going to make a claim to the credit card company if he's not their customer, they simply wouldn't entertain it.

Jenni_D

(IIMU that) He couldn't use yours as he would not then be the person with the credit - it would be you. And neither of you would have any S75 protection as you weren't the purchaser of the vehicle.

Could he not apply for a credit card with a low limit? (There are several that advertise on TV and radio). And he wouldn't even need to spend £100 on it ... £1 would be enough; even 1p would be enough. (S75 protection is based on the purchase price of the goods, not how much of the purchase was made using credit. But I know why you suggested £100 - it removes one mental hurdle it you ever needed to make a S75 claim).

Ebe_Scrooge

As above, the account holder and the purchaser need to be one and the same to benefit from S75.

What's the reason he wants S75 cover - is it to guard against the retailer going bust in between paying the deposit and collecting the car?  Or to cover the car "not being as described".  If the former, potentially he could give you the cash, you buy the car for yourself, using your card for the deposit, then immediately sell it to him.  Depends how much you trust him to keep to his side of the bargain!  Far simpler is, as Jenni suggests, he just gets his own card - doesn't really matter what limit he's given.

All this assuming, of course, that the seller will accept cards.  If it's a dealer they probably will accept a small deposit on a card - most won't accept the full purchase price due to the fees they are charged. If it's a private sale then it's highly unlikely the seller will take cards anyway.

born_again

roken86 said:

I've told him to do at least £100 on credit card. He doesn't have one so is there any reason he couldn't use mine for the £100 to get the section 75 protection? 
Any help appreciated. 

In a word NO... You would break the debtor creditor link.

As a aside you do not have to put £100 on a credit card for S75, it can be any amount from 1p up.

Grumpy_chap

Jenni_D said:

he wouldn't even need to spend £100 on it ... £1 would be enough; even 1p would be enough. 
I know why you suggested £100 - it removes one mental hurdle it you ever needed to make a S75 claim).

Ignoring the details of the attempt in this case, which it seems clearly won't achieve the desired outcome, from a practical perspective I can see logical reasons why you would naturally pay £100 on CC.  That is not the case for paying a truly nominal amount.

If you are in the Car Dealer, and ready to buy, but your only means to pay a deposit is using the CC, then £100 is enough that means you are going to return and conclude the deal. 

Perfectly reasonable to say you don't have any alternative means to pay that deposit right there and then, also reasonable that you would not have everything with you to do the finance paperwork.  That Dealer doesn't want you to walk out and risk the sale if you stop by someplace else.

Offering just £1 (or 1p) is not enough of a deposit to leave the Sales Representative secure the deal is done.  In fact, they may even then smell a rat that you are not confident and only doing the CC for the token amount to secure S75 protection and then likely to be a "complainer / rejecter" ???

tacpot12

Even if you added him as a secondary card holder, this wouldn't work either. Section 75 protection only applies to the primary card holder.  

debsy42

When we bought our car I paid for it on my CC, was over £10k. Dealer said they weren't allowed to charge fees anymore for paying by CC (previously I think would have been at least £300 we'd have to pay)

Grumpy_chap

debsy42 said:

When we bought our car I paid for it on my CC, was over £10k. Dealer said they weren't allowed to charge fees anymore for paying by CC (previously I think would have been at least £300 we'd have to pay)

For that reason, many Dealers will not accept CC for any more than the deposit.

The consumer may not be charged fees, but the business still has to fund them somehow.

roken86

Thanks for the info all, he ended up doing £500 on debit card and balance via bank transfer (not sure why!!) Seems the same thing to me.