Due diligence, used car £18.5k, consumer protection?

KittenChops

Hi,
Would really appreciate thoughts / warnings please

Yesterday was approved for a personal loan for 12k @ 5.9% over 72 months (not car finance), making up the rest with savings.  Mentioning the amount & rate as thought this would be way cheaper than car finance.  Money should be through later this week.

Viewed / test drove car - paid £250 deposit by bank transfer - collecting later this week.
Was expecting to be able to pay the deposit by credit card to enable S75 protection, should it be needed.  Dealer says he doesn't take credit or debit cards - pay by bank transfer only. Mentioned several times he is regulated by FCA (but this is surely irrelevant as not taking out finance though him?)
I'm aware there is no way to get funds back other than from dealer.

Dealer is limited company. Incorporated on Companies House since 2019. Companies House address is about 2.5 miles away from premises (residential).  Looks to be run by husband & wife team.

Plan to take the car to local garage for a check in the first week

Have checked for outstanding finance, write off history etc - all good (£4.95 check on auto trader)

Should we be considering taking car finance for extra protection, although likely to cost more?  Plan to overpay loan to clear it quicker than 6 years.

Slept badly last night!  What if the car is a lemon & the limited company folds?!
Current cars were in the region of 4k so this is big step up & a huge debt (relative to normal)

paul_c123

KittenChops said:

Slept badly last night!  What if the car is a lemon & the limited company folds?!
Current cars were in the region of 4k so this is big step up & a huge debt (relative to normal)

There's the option to 1) not buy a car at all, 2) buy a cheap car. All else being equal, and given that cars have thousands of moving parts which all eventually wear out, a £12k car is likely to be MUCH more reliable than a £4k (or cheaper) car though.

Having said that, you've not mentioned affordability. 72 months of loan finance is a long time.

Car_54

OP, you've just taken a £12k loan. Car finance may not be available at all.

daveyjp

My first thoughts are what car and how old is it?

A 6 year loan is a long time, but on a 12 month old Toyota it is less of a risk than an 8 year old Land Rover Discovery.

KittenChops

Thanks for the replies so far

But none have addressed my main concern - which is basically, should we run for hills, seeing as we can't pay anything on a credit card / have no protection...
Is it normal not to be able to pay deposit on a credit card?

KittenChops

to address replies above

yes - fully understand that having been approved for a £12k loan, may not subsequently be approved for car finance loan / further credit

yes - there's obv an option to not this buy this car / buy a cheaper car

re the 72 months - fully intend to repay much quicker than 6 years
monthly repayments are just under £200/month - I would hope (assuming no unforeseen events) that it would be cleared within 2-3 years

car is a 19 plate Jag F pace 


(edited for typos)

DullGreyGuy

KittenChops said:

Thanks for the replies so far

But none have addressed my main concern - which is basically, should we run for hills, seeing as we can't pay anything on a credit card / have no protection...
Is it normal not to be able to pay deposit on a credit card?

Accepting cards is relatively expensive compared to bank transfers and can leave you facing unreasonable chargebacks and other issues. Legally they cannot charge people paying by a personal card more 

If they are a small dealership and only buy/sell cars then it's not that uncommon. If they do general vehicle servicing etc then it would be very unusual however some will accept cards for service work and simply refuse to accept cards for vehicle purchases. 

Remembering that payment by credit card doesnt give you any additional rights, just another party you can pursue, if thats very important to you then look for another dealer that does take cards for deposits. 

Mildly_Miffed

KittenChops said:

car is a 19 plate Jag F pace 

2.0 diesel?

Read up on the Ingenium engine's timing chain problems, which mostly seem to be triggered by being used in conditions that don't allow the DPF to regenerate properly, exacerbated by overly long service intervals.

Just one good overview:
https://www.kmotors.co.uk/common-faults/2-0-ingenium-timing-chain/

I don't think your mode of financing is going to be the showstopper here.

You're making a very brave decision with the car itself, and remember that used car consumer rights are tempered by reasonable expectations for what's now a 6yo car, will be 12yo when your loan is due to be fully repaid.

Grumpy_chap

KittenChops said:

Plan to take the car to local garage for a check in the first week

The time to do this check would be prior to purchase.
There are services that can be arranged to check a car prior to purchase.

OR, buy a car in which you have more faith.

born_again

KittenChops said:

Thanks for the replies so far

But none have addressed my main concern - which is basically, should we run for hills, seeing as we can't pay anything on a credit card / have no protection...
Is it normal not to be able to pay deposit on a credit card?

You still have your consumer rights on the purchase.

A retailer can choose the payment methods they want. Card payments cost retailer more.

As to running for the hills or not, that has to be your choice & if you think the car is worth it. 

car is a 19 plate Jag F pace 

Check out a forum on the car... 

Stubod

https://www.whatcar.com/jaguar/f-pace/estate/used-review/n862/reliability

..brave choice???