Safest way to pay for a car?

[Doug86]

Hi,

I am in the position to purchase a new (to me) car. I have the money in my current account, assuming I buy from a garage is it best to pay on my debit card? Or would I be better paying in a different way?

If I were to buy through a private seller would I be best to go to the bank with the seller and I assume they can transfer the cash from my debit card to their account on the spot?
Or is cash still king?!

[Viper]

a garage will prefer a debit card, been that way for years

[Doug86]

Is there any benefit to paying on a credit card?

[Cost Captain]

Never pay cash in hand for a car of more than say £500.

Safest way to do it is to transfer the money from your account to the sellers, accompanied by a receipt signed by yourself and the seller. That way there is sufficient evidence of payment being made.

[xrv]

To be honest 50% debit card and 50% Hire Purchase is the best way even if you have the money. That way if anytrhing does go wrong with the car you have another route to get thing sorted due to the joint responcibility from the finance company.

[spaceship]

With a credit card, won't the credit card company fight the case for you, if the car turns out to be 'not as advertised' and the garage isn't very forthcoming with fixing it or taking it back.

[xrv]

spaceship said:

With a credit card, won't the credit card company fight the case for you, if the car turns out to be 'not as advertised' and the garage isn't very forthcoming with fixing it or taking it back.

50% hp or this. Makes it a DCS contract which offers more protection.

[Doug86]

Surely once you have paid the balance off on the credit card then they won't be interested any more?

[H_Kan]

Doug86 said:

Surely once you have paid the balance off on the credit card then they won't be interested any more?

Doesn't matter if you pay it off straight away. See s.75 of the credit act 1974 for details.

If from a dealer, pay a few hundred quid deposit on cc and rest by debit card, as that will get you cc protection but you won't have to pay higher cc charges on the whole balance.

[Viper]

dealership wouldnt like a full payment for a new vehicle on a credit card,
due to the fee/ handling charge they have to pay

surely if pay a 'few hundred quid deposit on cc'
the credit card company would only help on the few hundred, and not the remaining sum if there was any trouble ?

Edited by Viper on Thursday 22 July 22:37

[H_Kan]

No, as long as the total amount is over £100 and less then £30,000 then you are covered so long as part of the payment was made by CC, doesn't matter how much.

[Doug86]

H_Kan thank you for that information!

http://www.financial-ombudsman.org.uk/publications...

"ection 75 does not, in itself, provide grounds for a claim against a supplier. Customers must have a valid claim of breach of contract or misrepresentation under other law, such as the Sale of Goods Act or the Misrepresentation Act. If they do, then they have a like claim against the card provider for the full amount of the claim.

The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or misrepresentation. And this applies even if all they paid by credit card was the deposit.

So, for example, a customer who pays a deposit for goods – using a credit card issued by firm A – and then pays the balance using firm B’s card, has the choice of claiming for the cost of goods and any consequental losses against:

* the supplier of the goods;
* firm A;
* firm B; or
* all three.

But of course, the customer cannot recover the same money twice."

Looks like a deposit will be paid on the credit card and the rest covered on debit card!

Thank you for the advice!