Car purchase structure - Any suggestions?

n15h

I am intending to buy a used 2024 plate Kia Niro from a dealership. The dealership is not a Kia dealership, but it has multiple locations nationwide. The dealership I am buying from is 100 miles from my location.

The car has done 12K miles and I agreed a price of £26K which I intend to pay by:

• Have already paid £250 deposit on credit card.
• £19,750 yet to be paid by bank transfer.
• £6000 on Hire Purchase (HP) arranged through the dealer - this has been approved.

The bank transfer and the signing of the HP paperwork will be completed this weekend. I saw and test drove the car last week. There were some minor issues such as chips on the bonnet and a scratch on one of the door panels, which I asked the dealership to address. I acknowledge its a used car so it will never be in brand new, pristine condition. I will check the issues have been addressed first when I go to see the car next before completing the purchase/payment.

I didn't find any issues with the car, its equipment, or any warnings/indicators on the dashboard. The service history has stamps for 2 Kia services already (in 2025 and one this year) and is covered by the 7 year warranty (just under 5 years left now). There is no MOT on the car as it is under than 3 years old (MOT due next year).

However, I know its good to have some protections in place in the event something goes wrong in the first couple of months. This is why I paid the deposit on credit card and taking out HP. I can pay off the HP within 1 month as I have savings available to cover it.

However, before I complete the purchase, sign the paperwork including HP agreement, and ultimately pay off the HP, I thought it would be best to get some guidance/suggestions from this forum on whether this is the best way to structure the purchase to get as much protection as possible (and to be able to retrieve the moneys paid) in the event something goes majorly wrong with the car in the first 6 months.

Thanks in advance.

Mildly_Miffed

If you part-pay for the car with finance of some kind, including HP, then your consumer rights are unchanged in and of themselves - but the financier has joint liability with the vendor in the event of any consumer rights comeback.

If the vendor was a fly-by-night, who may be tempted to "phoenix", then that may be relevant and important. If it's a multi-site chain, less so.

n15h

@Mildly_Miffed thanks. That was my thinking also which is why I opted to get HP.

I just wasn't sure if the financier's (Black Horse in this case) liability ends when the HP is paid off and therefore if any issues arise with the car between the point of HP pay off and month 6, then whether I can go to the financier to get the car/issues fixed?

I say Month 6 above as I read online that if there is an issue with the car that are not reported within 6 months of purchase, then it is on the customer to prove the fault existed at the time of purchase.

The vendor is Hartwell - and I did see they have multiple sites nationwide (although none are near me including the site I am purchasing the car from).

Goudy

Once you pay off any outstanding finance, the finance company no longer have any interest in the car. They will often write to you and tell you as much once the finance is settled.

So they won't get involved after that.

You could do with reading the Consumer Rights Act regarding used cars, but the car has a manufacturer warranty still on it, so most faults will be cover except for things that are considered wear and tear or serviceable items.

Bigwheels1111

what is the exact model you are after as basic 26 plate pure model is 24k.

22.8k is the cheapest with 1200 miles.

n15h

@Goudy I shall research more on the consumer rights act, but you're right that the Kia warranty is still there for the next few years.

@Bigwheels1111 Its the Kia Niro 4

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82147196#Comment_82147196

Is that true? My credit card company are still on the hook for any S75 claim even after I've paid the balance off....Is it different for finance?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82147260#Comment_82147260

No it's not true, the finance company remains liable under S75.

OP, personally I think your credit card and finance company approach is overkill. You have S75 protection with the credit card deposit. Why pay interest on part finance? Could lead to issues should the worst happen and you have 2 potentially liable entities - who pays?

n15h

@Isthisforreal99 my thinking was:

1. Having finance so in the event that something goes majorly wrong with the car from day 1 - until its paid off, I can deal with the finance company to get it rectified without having to travel a 100 miles each way to the dealership. I appreciate I would be paying interest, but this would give me peace of mind knowing I have protection without travelling 200 miles round trip to the dealer to investigate - and potentially be left without a car in the mean time until the issue is rectified.
   
2. Once the finance is paid off, if anything becomes an issue up to 6 months after purchase, I have S75 protection if its needed because of the deposit paid on the credit card. I don't envisage this being needed (due to the Kia warranty) but again it was more for peace of mind.

I haven't yet seen/signed the HP agreement - so can still cancel it when I visit the dealership to purchase the car and get the keys if it is overkill for protection.

AI (ChatGpt and Gemini) suggested that the finance company would have liability under S56 of Consumer credit act until the finance is paid off, after which, it would be the credit card company under S75.

As in my original post, I thought it best to ask this forum for guidance/suggestions on whether this is the best way to structure the purchase to get as much protection as possible (and to be able to retrieve the moneys paid) in the event something goes majorly wrong with the car in the first 6 months.

I wonder if there is anyone who has experience of structuring their car purchase this way and then needed to get an issue fixed - it would be interesting to know of their experience.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82147370#Comment_82147370

1. You would need to deal with the dealership before you involve the finance company. The first thing the finance company would say is 'take it to the dealer' for diagnostics.
2. You don't need 2 sets of S75 protection, which is what the finance would also give you.

n15h

https://forums.moneysavingexpert.com/discussion/comment/82147387#Comment_82147387

Ah, in that case my thinking would be wrong. I thought I could speak to the finance company and then go to a local garage, rather than having to take the car 100 miles back to the dealership for them to investigate.