Safest way to make a large purchase

[THE 80Y]

According to experts the safest way to make a purchase is to use a credit card because you have section 75 protection on purchases made between £100 and £30k.

Which is the best and safest way to make a large one off purchase for more than £30k, for example £90k/£100k?

A credit card wouldn't protect you, nor would a bank transfer or cheque.

[PM3]

Protect you against what ?

[THE 80Y]

I'm guessing if the money disappears or you don't receive the item you've bought (scammed). There would be no way to claim the money back like you would with a credit card.

[trickywoo]

The entire sum doesn’t need to be on credit card to benefit from the protection offered.

That being said there is no substitute for due diligence and money can sit with a third party (solicitor) until the deal is done.

[alscar]

It also depends on what exactly is your purchase and who from ?

[davek_964]

THE 80Y said:

I'm guessing if the money disappears or you don't receive the item you've bought (scammed). There would be no way to claim the money back like you would with a credit card.

I can't think of many things I'd spend £100k where I'd be hoping it turned up by post........

[TwigtheWonderkid]

What would happen re section 75 if you used 3 credit cards sticking £30K on each. Assuming anyone has 3 cards with those kind of limits.

[simon_harris]

TwigtheWonderkid said:

What would happen re section 75 if you used 3 credit cards sticking £30K on each. Assuming anyone has 3 cards with those kind of limits.

OT but at one point I had available credit balance of just over £100k on credit cards, I was only earning about £60k at the time and was actively clearing down all debt rather than trying to accrue more.

On the original topic it really depends on what it is you are buying I guess.

[THE 80Y]

davek_964 said:

THE 80Y said:

I'm guessing if the money disappears or you don't receive the item you've bought (scammed). There would be no way to claim the money back like you would with a credit card.

I can't think of many things I'd spend £100k where I'd be hoping it turned up by post........

Thanks for your comments. I'm thinking along the lines of alternative investment opportunities eg classic cars/gold/private plates/wine/paintings etc.

I'm not planning on investing myself, it's the actual 'transaction' process I'm not too sure about. I should imagine a solicitor or escrow service would help if needed.

[dalenorth]

Alternative investments are unregulated so you’d be up the swanny if you were ripped off. Best to stick with FCA regulated advice tbh.

[LooneyTunes]

THE 80Y said:

Thanks for your comments. I'm thinking along the lines of alternative investment opportunities eg classic cars/gold/private plates/wine/paintings etc.

I'm not planning on investing myself, it's the actual 'transaction' process I'm not too sure about. I should imagine a solicitor or escrow service would help if needed.

You could suggest using an escrow service for a private transaction but I doubt any dealer would entertain that for £100k purchase in any of those asset classes, perhaps save for private plates? (but given transactions can be reversed by DVLA many months later that wouldn’t give you any protection). It’s not a trivial sum of money for most people but in those markets it wouldn’t be a big deal.

The other asset classes you refer to have tangible goods involved albeit, in the case of wine in particular, owners may never actually take physical possession. For example, I was offered an expensive case of wine this week that has been in professional storage under a single owner for more than 30 years. I doubt the owner has ever even seen it. There’s sadly a chance, at that level, that the next buyer might not either. In fact, in that market (in the uk) you generally impair the value if you do take physical delivery.

The answer to you question is simple: understand how the particular asset class works and do your diligence. Especially if it is one where you’re unlikely to take physical possession (as these offer greater opportunities for scammers).

ETA: at least one of the largest UK wine merchants doesn’t accept credit cards at all (debit card or bank transfer only).

Edited by LooneyTunes on Saturday 25th January 07:36

[Gulf7]

trickywoo said:

The entire sum doesn’t need to be on credit card to benefit from the protection offered.

No, but the total value of whatever is being purchased does need to be between £100 and £30k.