Looking on advice on paying for my new S3.  Car has arrived in the UK and so has it's invoice.  Deposit was paid by Credit Card, how can I pay the remainder in a 'Protected' manner?

 

The purchase is from a Internet Dealer, well known on this forum.

Depending on how much you paid on the credit card, regardless of how you pay the balance you are protected to the full amount. Plenty of info on this over on money saving expert.

As long as you have paid part of the balance (deposit) on your credit card, the credit card company is liable for the full amount up to £30k

Whooohooo!!! Cheers Folks!

As above. If you paid ANY amount on credit card, even just £1, section 75 comes into play and you have protection.

Word of warning - if the cash price of the car is more than £30k you may not be covered by section 75.

It only protects purchases above £100 and less than £30k.

Not sure what the value of your new car is. If it's more than £30k you need to pay the balance via a method directly linked to the purchase, i.e.a loan / PCP arranged by the dealer. This is covered by section 75a

HTH

http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases

Edited 25 May, 201610 yr by 999pooch

Although it would seem you have protection if it's above £30k under certain situations too:

This protection comes under Section 75a and introduces an upper limit for claims of £60,260. The legislation gets complex for Section 75a, because for a purchase to be covered, the finance must be properly linked to an item (known as a debtor-creditor-supplier agreement) so the finance company can see a clear relationship between the money and the goods.

So, a £40,000 car wouldn't be covered if you'd used a credit card or personal loan as you could have used those to buy anything. A loan, specifically for the car, arranged through the dealership would be covered.

So actually, if the car is over £30k you are safest to pay a deposit by credit card, and get the rest on finance. Once you had the car you could then pay your finance off early.

What if there is no finance for the purchase and it's your own money?  Does Section 75a still apply?

What if there is no finance for the purchase and it's your own money? Does Section 75a still apply?

Nope :(

Read the link I posted above on MSA. Scroll down and section 75a is explained there

So actually, if the car is over £30k you are safest to pay a deposit by credit card, and get the rest on finance. Once you had the car you could then pay your finance off early.

I think that's what I said!

I think that's what I said!

Errr... So it is! Sorry I completely misread your post!

So, if I pay the Deposit on a Credit Card but pay the outstanding balance with my own money, that money is NOT protected? 

So, if I pay the Deposit on a Credit Card but pay the outstanding balance with my own money, that money is NOT protected?

Nope. To get protection on purchases with a cash value greater than £30k you must pay the balance with credit that is directly linked to the product.

Quote from MSA:

Protection for £30k+ purchases

Section 75 covers purchases made on credit between £100 and £30,000. So a car costing £40,000 wouldn't be covered. However, changes made in 2010 mean that certain credit agreements above £30,000 are now covered.

This protection comes under Section 75a and introduces an upper limit for claims of £60,260. The legislation gets complex for Section 75a, because for a purchase to be covered, the finance must be properly linked to an item (known as a debtor-creditor-supplier agreement) so the finance company can see a clear relationship between the money and the goods.

So, a £40,000 car wouldn't be covered if you'd used a credit card or personal loan as you could have used those to buy anything. A loan, specifically for the car, arranged through the dealership would be covered.

The other big difference is that under Section 75 you can take your complaint to the good/service provider OR to the credit provider, as they're both jointly and severally liable. But, under Section 75a, you need to have unsuccessfully complained or tried to complain to the provider of the good or service (if they still exist) to make a claim to the credit provider.

But I would be protected up to £30k?

But I would be protected up to £30k?

Yes. If the total value of the car, deposit and balance totals no more than £30k then normal section 75 applies.

Excellent, thank you 999pooch

Excellent, thank you 999pooch

No probs, enjoy your car