Section 75 for used car on parent's credit card?

wendel17

Season's greetings and thanks in advance for any replies. 

I'm hoping to buy an approved used car in the next few days from a dealership. Ideally, I would like to benefit from Section 75 protection by making some of the payment on a credit card... but I have never had one, and there isn't enough time to get one posted out before the likely purchase. 

If I pay a nominal amount towards the car on my dad's credit card, would that offer any Section 75 protection? I have read the advice article on MSE that mentions it is a grey area. 

He is helping me buy the car already with some money as a gift. I may add him to my car insurance policy as a named driver, in which case he will "benefit" from the car himself as the main cardholder, even if it is purchased in my name, not his. 

Any thoughts or advice on this, please? Many thanks. 

Manxman_in_exile

I'm not certain it is a grey area.

If cardholder A uses their credit card to buy a "gift" for person B, I don't think either can make a s75 claim.  Cardholder A has no benefit from the gift (of course you can argue about this but it probably won't work) and it's not person B's card.

I'm pretty certain the advice previously in the MSE article was wrong.  It gave as an example exactly what you are talking about and said you could make a s75 claim.  It then linked to an ombudsman decision that said the exact opposite.  Whether it's been corrected I don't know...

RobM99

How about - Dad buys the car, allows you to use it, then buy it from him for the same price later on? (I suspect this might be a bit 'Baldrick').

born_again

wendel17 said:

Season's greetings and thanks in advance for any replies. 

I'm hoping to buy an approved used car in the next few days from a dealership. Ideally, I would like to benefit from Section 75 protection by making some of the payment on a credit card... but I have never had one, and there isn't enough time to get one posted out before the likely purchase. 

If I pay a nominal amount towards the car on my dad's credit card, would that offer any Section 75 protection? I have read the advice article on MSE that mentions it is a grey area. 

He is helping me buy the car already with some money as a gift. I may add him to my car insurance policy as a named driver, in which case he will "benefit" from the car himself as the main cardholder, even if it is purchased in my name, not his. 

Any thoughts or advice on this, please? Many thanks. 

Even if on the  insurance. It will not wash with his CC when the invoice is in your name.

S75 is not used very often, as people think & is not a insurance policy covering everything.

Even using the option @RobM99 said is going to fail if it happens after you have bought it off your father. As they no longer own the car, they have no claim against the CC.

RobM99

Even using the option @RobM99 said is going to fail if it happens after you have bought it off your father. As they no longer own the car, they have no claim against the CC.

..which is why I said "after a while" as in weeks, not 20 minutes!

wendel17

Thanks both! Interesting points you each raise. Sounds like I'll have to buy it in my name without the S75 protection or ask my dad to do it in his name, then buy the car from him a year or so down the line. 

sheramber

Have  you checked that the dealer accepts credit cards?

born_again

RobM99 said:

Even using the option @RobM99 said is going to fail if it happens after you have bought it off your father. As they no longer own the car, they have no claim against the CC.

..which is why I said "after a while" as in weeks, not 20 minutes!

Well in that case. It's still pointless. As S75 is only really of use after all your consumer rights have gone.

ontheroad1970

it does work if you have an uncooperative dealer that won't give you your statutory rights.

macman

sheramber said:

Have  you checked that the dealer accepts credit cards?

Most would accept £100.01 on a card and the rest on a debit card if that were the only deal on offer from the OP.

MarvinDay

macman said:

sheramber said:

Have  you checked that the dealer accepts credit cards?

Most would accept £100.01 on a card and the rest on a debit card if that were the only deal on offer from the OP.

Provided that all the other conditions for S75 are complied with, they don't have to take £100.01 for S75 to apply. The £100 minimum is only for the price of the item and not the amount that has to be funded by credit.

You could pay as little as 1p on a credit card or direct finance agreement to ensure that the credit provided could be held liable should there be a problem with the goods.