Car purchase structure - Any suggestions?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82147401#Comment_82147401

Nope, after 30 days you need to give the seller the opportunity to repair.

n15h

https://forums.moneysavingexpert.com/discussion/comment/82147404#Comment_82147404

Thanks for clarifying. I do take on board your feedback that having finance then would likely be overkill to have 2 sets of S75 protection when this protection is already in place as the deposit has been paid on credit card.

Goudy

https://forums.moneysavingexpert.com/discussion/comment/82147296#Comment_82147296

Section 75 of the Consumer Credit Act does not apply to standard dealership arranged HP or PCP finance.

Again, you need to read up on these things as there are things that apply with one type of finance and not others and vice versa.

Section 75 requires a triparty relationship. So a debtor, a creditor and a supplier.

Dealer arranged car finance contracts are not triparty arrangements. The legalities of these arrangements is the finance company legally buys the car from the dealership or importer/manufacturer and becomes the legal owner and more importantly, the supplier of the vehicle to you the customer. So it's a two party arrangement.

Any beef with the car and you legally go back to the supplier, which is the finance company. But most cars will have some form of warranty or they will be covered by the Consumer Rights Act if they were not fit for as described, not fit for purpose, of satisfactory quality, so at first they will send you back to them.

Once the finance contract is fulfilled, they have no interest in the vehicle anymore and will write to you stating just that. As there was no S75 to start with, so there's no S75 cover before or after finance is settled.

In fact the above two party arrangement legally supersedes any Section 75 you would normally get by using your credit card to pay a deposit on dealer arranged finance.

But don't take my word for it, read up on it. The Consumer Credit Act isn't a well hidden secret and your credit card supplier should be able to explain it as well.

Things are different if you arrange finance yourself, say with a bank loan or other form of third party finance that legally creates that other party as it now becomes that important triparty arrangement. The dealer is the supplier, you are the debtor and the bank/third party finance company are the creditor. So Section 75 comes into play.

n15h

@Goudy thanks for providing this clarity particularly the S75 triparty relationship. I see your point that a dealer arranged car finance would not be triparty arrangement and therefore would not benefit from S75 protection.

Interesting to note the 2 party arrangement where there is a finance contract. In my case, would it matter whether the finance is only £6,000 rather than the full purchase price of £26,000, or that £250 deposit was paid on credit card?

I am currently in 2 minds whether to still go ahead with the HP finance or not (credit search has passed but paperwork is not yet signed). I will try to research some more this evening on the consumer credit act before I visit the dealership tomorrow to complete the purchase.

born_again

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

Any finance would be looking at you returning car to dealer, so this is not a way of getting out of returning to them. As your consumer rights are with the dealer.

n15h

Thanks everyone for your input and thoughts. I did not go ahead with the finance. I made my decision after weighing up Kia's remaining 7 year warranty, the dealership's 3 month warranty, and S75 protection (as deposit paid on credit card). I bought the car this weekend, I'm happy with the purchase, and everything is running well.