What's the best option for payment?

Pro1

Hi all, I'm in the process of looking to buy a second hand car from a dealers.
I'm have enough money saved to pay for it along side my Part Exchange but just wondered what is the best payment that may give me future protection should there be a problem.
My credit rating has no issues so is it best to get all or some on HP then pay it all off? Of maybe pay it on Credit Card then pay it straight off? Or something else?
Thank you

MikeJXE

Something else.

Buy from a main local dealer you can trust with manufactures warranty if possible

It don't matter what way you pay then 

GrumpyDil

If they will accept a deposit paid by credit card then the credit card company would be joint liable with the garage as long as the cost is between £100 and £30000

Ectophile

The last two cars I've bought have been deposit by credit card, then the balance by debit card.  Simple and no fuss.  You get Section 75 protection by using a credit card.  And you don't take out a big credit agreement when you don't need to.

luci

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer. I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

CliveOfIndia

luci said:

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer.

Deposit by CC, balance by bank transfer is a very common way of doing it.  Most car dealers won't accept the full amount by credit card due to the fees they get charged by the card company, but will take a small deposit.

Interestingly, up until a few years ago I always paid the balance by debit card, but the last couple or times they've wanted the balance by bank transfer.  I've no idea if that's cheaper for them, more secure, just simpler, or what - either way, it's no problem if you've paid a deposit by CC (and probably not a problem anyway if you're buying from a well-established dealership).

luci said:

I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

I'm curious as to how much you paid for the car if you had to do the transfer in 2 instalments?  If the total cost was more than £30,000 then S75 doesn't apply - just something to bear in mind.

Goudy

CliveOfIndia said:

luci said:

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer.

Deposit by CC, balance by bank transfer is a very common way of doing it.  Most car dealers won't accept the full amount by credit card due to the fees they get charged by the card company, but will take a small deposit.

Interestingly, up until a few years ago I always paid the balance by debit card, but the last couple or times they've wanted the balance by bank transfer.  I've no idea if that's cheaper for them, more secure, just simpler, or what - either way, it's no problem if you've paid a deposit by CC (and probably not a problem anyway if you're buying from a well-established dealership).

luci said:

I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

I'm curious as to how much you paid for the car if you had to do the transfer in 2 instalments?  If the total cost was more than £30,000 then S75 doesn't apply - just something to bear in mind.

How much you can transfer tends to change depending on if how you transfer it.
You are usually limited if you are using a banking app, but can transfer more if using the full online banking facility.

Also, I seem to think S75 doesn't apply if the goods are faulty and still under the manufacturers warranty either, you have to take it up with the manufacturer directly.

Section 75 refunds: credit card protection’ - MSE (moneysavingexpert.com)
See section "what is and isn't covered".

I am not sure where you would stand with a third party warranty though.

I guess it's still worth doing if you can but it's also worth knowing that it's not a cover all for every occurrence. 

bluelad1927

CliveOfIndia said:

luci said:

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer.

Deposit by CC, balance by bank transfer is a very common way of doing it.  Most car dealers won't accept the full amount by credit card due to the fees they get charged by the card company, but will take a small deposit.

Interestingly, up until a few years ago I always paid the balance by debit card, but the last couple or times they've wanted the balance by bank transfer.  I've no idea if that's cheaper for them, more secure, just simpler, or what - either way, it's no problem if you've paid a deposit by CC (and probably not a problem anyway if you're buying from a well-established dealership).

luci said:

I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

I'm curious as to how much you paid for the car if you had to do the transfer in 2 instalments?  If the total cost was more than £30,000 then S75 doesn't apply - just something to bear in mind.

I recently bought a new motorbike and  the banking app limited my first payment to a new payee to £2000. So similarly  I had to follow it up the next day with remaining funds

CliveOfIndia

Goudy said:

Also, I seem to think S75 doesn't apply if the goods are faulty and still under the manufacturers warranty either, you have to take it up with the manufacturer directly.

I guess it's still worth doing if you can but it's also worth knowing that it's not a cover all for every occurrence. 

I absolutely agree - S75 is not a magic panacea that will cover everything.  Essentially it just gives you cover where a supplier has breached the terms of their contract.  Any warranty issues need to be taken up with the supplier in the first instance, it's quite rare that S75 would provide any sort of warranty cover.

For car purchases, it's more a case of giving you some peace of mind if the dealership goes bust after you'd paid for the car but before they deliver it.  Or if they simply fail to deliver the car you've paid for, that kind of thing.

I suspect it's actually fairly uncommon that you'd need to make a S75 claim in relation to car purchases - but if you can get that extra little bit of cover, you may as well have it

luci

CliveOfIndia said:

luci said:

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer.

Deposit by CC, balance by bank transfer is a very common way of doing it.  Most car dealers won't accept the full amount by credit card due to the fees they get charged by the card company, but will take a small deposit.

Interestingly, up until a few years ago I always paid the balance by debit card, but the last couple or times they've wanted the balance by bank transfer.  I've no idea if that's cheaper for them, more secure, just simpler, or what - either way, it's no problem if you've paid a deposit by CC (and probably not a problem anyway if you're buying from a well-established dealership).

luci said:

I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

I'm curious as to how much you paid for the car if you had to do the transfer in 2 instalments?  If the total cost was more than £30,000 then S75 doesn't apply - just something to bear in mind.

Up till at least 2015, Arnold Clark only took full payment by debit card. They wouldn't take a credit card even for part of it due to the fees. Bank transfer is instant, so they can see straight away if it's been paid and it's also cheaper for them.

It was more than the £25000 limit, but less than £30000, so all good re S75, but thanks for mentioning it just in case.

luci

Goudy said:

CliveOfIndia said:

luci said:

I've just bought a car outright. I paid the £500 deposit by credit card and the balance by bank transfer.

Deposit by CC, balance by bank transfer is a very common way of doing it.  Most car dealers won't accept the full amount by credit card due to the fees they get charged by the card company, but will take a small deposit.

Interestingly, up until a few years ago I always paid the balance by debit card, but the last couple or times they've wanted the balance by bank transfer.  I've no idea if that's cheaper for them, more secure, just simpler, or what - either way, it's no problem if you've paid a deposit by CC (and probably not a problem anyway if you're buying from a well-established dealership).

luci said:

I had to do that over 2 days, as the bank has a limit on how much you can transfer in one day. As already said, the credit card gives you Section 75 protection.

I'm curious as to how much you paid for the car if you had to do the transfer in 2 instalments?  If the total cost was more than £30,000 then S75 doesn't apply - just something to bear in mind.

How much you can transfer tends to change depending on if how you transfer it.
You are usually limited if you are using a banking app, but can transfer more if using the full online banking facility.

Also, I seem to think S75 doesn't apply if the goods are faulty and still under the manufacturers warranty either, you have to take it up with the manufacturer directly.

Section 75 refunds: credit card protection’ - MSE (moneysavingexpert.com)
See section "what is and isn't covered".

I am not sure where you would stand with a third party warranty though.

I guess it's still worth doing if you can but it's also worth knowing that it's not a cover all for every occurrence. 

Yes, you are correct. S75 only kicks in if you cannot resolve the issue any other way. Therefore, it would be the warranty first. Only if you cannot get a satisfactory resolution does S75 apply.