Car finance just to get s75 protection

powerful_Rogue

Good morning,

Looking at buying a used car, however the dealership don't accept credit cards. I was hoping to pay a small amount on the credit card, and the rest debit card.

They do however offer finance through Blue Motor Finance.

If I was to take out HP finance and then pay it off shortly after, I would be covered for s75? Is it best to leave the policy in place for at least 14 days?

I asked the company if there are early repayment charges, and they said 'No early repayment charges as such' - So im presuming that will be something to do with paying interest?

MattMattMattUK

powerful_Rogue said:

Good morning,

Looking at buying a used car, however the dealership don't accept credit cards. I was hoping to pay a small amount on the credit card, and the rest debit card.

They do however offer finance through Blue Motor Finance.

If I was to take out HP finance and then pay it off shortly after, I would be covered for s75? Is it best to leave the policy in place for at least 14 days?

I asked the company if there are early repayment charges, and they said 'No early repayment charges as such' - So im presuming that will be something to do with paying interest?

You need to read the finance contract with regard to early repayment charges, "No early repayment charges as such" sounds very much like they know there would be an additional cost but are not going to tell you, leaving you to figure it out for yourself.

In theory yes you would get S75 protection from the vehicle finance. 

My opinion in this situation is that if you distrust this garage enough already, especially as they do not accept credit cards for deposits and are concerned about S75 then I would probably not buy from them.

powerful_Rogue

MattMattMattUK said:

powerful_Rogue said:

Good morning,

Looking at buying a used car, however the dealership don't accept credit cards. I was hoping to pay a small amount on the credit card, and the rest debit card.

They do however offer finance through Blue Motor Finance.

If I was to take out HP finance and then pay it off shortly after, I would be covered for s75? Is it best to leave the policy in place for at least 14 days?

I asked the company if there are early repayment charges, and they said 'No early repayment charges as such' - So im presuming that will be something to do with paying interest?

You need to read the finance contract with regard to early repayment charges, "No early repayment charges as such" sounds very much like they know there would be an additional cost but are not going to tell you, leaving you to figure it out for yourself.

In theory yes you would get S75 protection from the vehicle finance. 

My opinion in this situation is that if you distrust this garage enough already, especially as they do not accept credit cards for deposits and are concerned about S75 then I would probably not buy from them.

Thank you.

I don't have any reason to distrust the garage, but it's always nice to have that added protection where possible 'just incase'.

DrEskimo

Just do the holding deposit on credit card and rest on debit/BACS. 

Assuming the used car is less than £30k, that would be fine. 

The finance may charge you up to 2months interest as part of early settlement. 

powerful_Rogue

DrEskimo said:

Just do the holding deposit on credit card and rest on debit/BACS. 

Assuming the used car is less than £30k, that would be fine. 

The finance may charge you up to 2months interest as part of early settlement. 

They won't take any payment on credit card.

DrEskimo

powerful_Rogue said:

DrEskimo said:

Just do the holding deposit on credit card and rest on debit/BACS. 

Assuming the used car is less than £30k, that would be fine. 

The finance may charge you up to 2months interest as part of early settlement. 

They won't take any payment on credit card.

I see.

In which case I wouldn't personally bother with finance. The cost and hassle aren't worth the small risk the S75 protection will grant you IMHO.

~Brock~

If the car finance is HP it doesn't come with s75 protection.  The lender is classed as the seller/supplier of the goods by virtue of the Supply of Goods (Implied Terms) Act 1973 and therefore takes on the responsibilities of the Consumer Rights Act 2015 in respect of the quality of the goods, but this is not the same as Section 75 protection in the sense that you can't just invoke a 'chargeback' or similar.