Credit card to buy a used car
Discussion
How much is the car? If it's over £9,000 I don't think the dealer can take cash due to money laundering regulations. In any event, most dealers don't want cash.
If it's over £30,000 the section 75 credit card protection doesn't apply. Note this is the case even if you're using the card to put down a £3,000 deposit on a £31,000 car.
How's your mate going to pay your credit card bill when it arrives?
What are you going to do if your mate gets run over by a bus before you are repaid?
Why get involved? Your mate can easily pay with his debit card. If not, the usual way to make payments is electronically so your mate should be able to sort that out with his bank.
If it's over £30,000 the section 75 credit card protection doesn't apply. Note this is the case even if you're using the card to put down a £3,000 deposit on a £31,000 car.
How's your mate going to pay your credit card bill when it arrives?
What are you going to do if your mate gets run over by a bus before you are repaid?
Why get involved? Your mate can easily pay with his debit card. If not, the usual way to make payments is electronically so your mate should be able to sort that out with his bank.
stlol said:
The car is £7k. He will give me the cash as we go to collect it, it was a suggestion by me as I thought that he would be better protected in the event of any issues with the vehicle, I don't believe you get this with paying via debit card / transfer.
Fair enough.What s.75 of the consumer credit act actually says is,
"Liability of creditor for breaches by supplier.
(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor."
The problem with your mate's situation is that you are not the debtor, he is. It's him who is buying the car and who must pay for it and presumably his name on the contract/invoice/new V5. Looks to me as though s.75 wouldn't apply.
YOU would undoubtedly get protection if YOU bought the car on your credit card and then sold the car to your mate afterwards.
Amongst other things I think you might find the dealer wants to charge an extra 2% once you mention "credit card".
I would put £50 on your credit card then let him pay cash for the rest.
It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
Jockman said:
I would put £50 on your credit card then let him pay cash for the rest.
It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
Is this for Section 75 of the CCA protection? If so, should it not be £100?It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
750turbo said:
Jockman said:
I would put £50 on your credit card then let him pay cash for the rest.
It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
Is this for Section 75 of the CCA protection? If so, should it not be £100?It is a grey area and as Ozzie points out the contract will be with him, thus reducing your chances of s75.
Then again, you could be buying him a present
Remote, clutching at straws possibility.....but I would still do the £50.
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