Buying a car via Credit Card?

25 replies
Found 24th Oct 2016
Morning all, i'm looking to buy a car this week from an independent garage. Would I have more protection if I purchase it with a credit card rather than a bank transfer?

Furthermore, the car is costing almost £28,000, so without a credit card to that limit, could I transfer the cash onto the credit card to hold a positive balance, and use it then?

Apologies, i'm new to both 2nd hand car buying AND credit cards, but i'm looking to safeguard myself as much as possible!

All advice much appreciated.

25 Comments

You only have to pay part of the balance by credit card to be covered for the whole amount so if you have the cash then pay a deposit on your credit card and then pay the rest however you like.

HondaLad

You only have to pay part of the balance by credit card to be covered for … You only have to pay part of the balance by credit card to be covered for the whole amount so if you have the cash then pay a deposit on your credit card and then pay the rest however you like.



This.

I looked into this before, but I seemed I wasn't going to find out what my credit limit was on the cards until I had applied for the card. So I might have had to get 2 or even 3 cards to cover the full cost of the car I was getting. In the end i just took out a loan at the cheapest interest rate which was available in the UK at the time, so it's costing me very little over the course of my 5 year loan.
Edited by: "mart321" 24th Oct 2016

I'm in this boat, seen a car I like little more than you but my credit card is only good for £500, I literally never use it and never even thought about asking to up it. How much would I need to pay on the card to cover it?

Original Poster

HondaLad

It won't let me edit my first post for some reason but here is a link … It won't let me edit my first post for some reason but here is a link explaining, Credit card protection explained


Great link, thank you. It actually uses the example of buying a car.

Original Poster

mart321

I looked into this before, but I seemed I wasn't going to find out what … I looked into this before, but I seemed I wasn't going to find out what my credit limit was on the cards until I had applied for the card. So I might have had to get 2 or even 3 cards to cover the full cost of the car I was getting. In the end i just took out a loan at the cheapest interest rate which was available in the UK at the time, so it's costing me very little over the course of my 5 year loan.


No intention of using any credit, the thing is costing enough so don't want to waste more money on interest! haha

Original Poster

Toon_army

I'm in this boat, seen a car I like little more than you but my credit … I'm in this boat, seen a car I like little more than you but my credit card is only good for £500, I literally never use it and never even thought about asking to up it. How much would I need to pay on the card to cover it?


Read the link from post #3.

Basically, pay the deposit on the credit card and then the remainder in cash, and you're covered. As far as I can read from it.

Don't forget also that the garage will probably charge you a fee (around 1-2%) for paying on credit card, so something to keep in mind when adding up the cost

Original Poster

Edward_Nigma

Don't forget also that the garage will probably charge you a fee (around … Don't forget also that the garage will probably charge you a fee (around 1-2%) for paying on credit card, so something to keep in mind when adding up the cost


Very true.

In my case, no fee applies but could do in some cases.

Original Poster

Does anyone know about loading the credit card with the value of the car? then making the payment in one via said card?

Edward_Nigma

Don't forget also that the garage will probably charge you a fee (around … Don't forget also that the garage will probably charge you a fee (around 1-2%) for paying on credit card, so something to keep in mind when adding up the cost


Consumer Law states that their charges must be reasonable however - so this can be negotiated with the garage.

Charging a percentage would mean a massive fee = unreasonable.

£100 on the credit card is all you need to pay to be covered by the consumer credit act . Pay the rest however suits

Actually, even if you only paid £1 by credit card - you shall be covered/protected - See link
moneysupermarket.com/cre…on/

Edited by: "mousey" 24th Oct 2016

Original Poster

psychobitchfromhell

£100 on the credit card is all you need to pay to be covered by the … £100 on the credit card is all you need to pay to be covered by the consumer credit act . Pay the rest however suits



mousey

Actually, even if you only paid £1 by credit card - you shall be … Actually, even if you only paid £1 by credit card - you shall be covered/protected - See linkhttp://www.moneysupermarket.com/credit-cards/guide-to-credit-card-protection/


I think the £100 amount applies to the value of the item, which has to be between £100 and £30,000

psychobitchfromhell

£100 on the credit card is all you need to pay to be covered by the … £100 on the credit card is all you need to pay to be covered by the consumer credit act . Pay the rest however suits

mousey

Actually, even if you only paid £1 by credit card - you shall be … Actually, even if you only paid £1 by credit card - you shall be covered/protected - See linkhttp://www.moneysupermarket.com/credit-cards/guide-to-credit-card-protection/


No, it applies to the amount that has to be paid by credit card . If the item is £30,000 , it is still £100 . So long as you pay £100 or over by credit card, you are covered under the consumer credit act

Original Poster

psychobitchfromhell

No, it applies to the amount that has to be paid by credit card . If the … No, it applies to the amount that has to be paid by credit card . If the item is £30,000 , it is still £100 . So long as you pay £100 or over by credit card, you are covered under the consumer credit act


I agree with this, although the terminology in the link doesn't help to decipher...

One bit states:
"Credit card protection provides you with a level of protection relating to anything you buy costing between £100 and £30,000."
While another bit states:
"credit cards must provide protection for a purchase above £100 and below £30,000."

But still, answers the question.

Pay a grand deposit on the credit card, pay the remainder in cash. Sorted.

JusticeForThe96

I agree with this, although the terminology in the link doesn't help to … I agree with this, although the terminology in the link doesn't help to decipher...One bit states:"Credit card protection provides you with a level of protection relating to anything you buy costing between £100 and £30,000."While another bit states:"credit cards must provide protection for a purchase above £100 and below £30,000."But still, answers the question.Pay a grand deposit on the credit card, pay the remainder in cash. Sorted.


Yeah . That will do the trick . Basically the consumer credit act kicks in on items over £100 but you do not have to pay the full balance to be covered . Enjoy your new car and I hope you never need to make a claim on it

Agree with Mousey & I'm pretty sure you only have to pay £1 on credit card to be covered by consumer credit act - Martin Lewis always seems to be shouting this when I happen to hear him on radio!

Original Poster

psychobitchfromhell

Yeah . That will do the trick . Basically the consumer credit act kicks … Yeah . That will do the trick . Basically the consumer credit act kicks in on items over £100 but you do not have to pay the full balance to be covered . Enjoy your new car and I hope you never need to make a claim on it


Thank you very much! Me too!!

Original Poster

Stupid additional question that I should have asked from the start if I wasn't an idiot....

So, I've realised that I no longer have a credit card. (I'm still getting used to all this!)

Could I use, for example, my mums credit card for the deposit, but more importantly would that be valid if the car was registered to me?!

JusticeForThe96

Stupid additional question that I should have asked from the start if I … Stupid additional question that I should have asked from the start if I wasn't an idiot....So, I've realised that I no longer have a credit card. (I'm still getting used to all this!)Could I use, for example, my mums credit card for the deposit, but more importantly would that be valid if the car was registered to me?!


You could use. her credit card but she would have to make a claim if anything went wrong . It might make things a bit more complicated but still covered . I have bought a car and had my husband pay the deposit before now

Original Poster

psychobitchfromhell

You could use. her credit card but she would have to make a claim if … You could use. her credit card but she would have to make a claim if anything went wrong . It might make things a bit more complicated but still covered . I have bought a car and had my husband pay the deposit before now


I've done a bit more research and I'm afraid that's not the case!

The clause being that "the purchased item must provide some benefit to the card holder to be considered for protection" so if it were a couples car (like yourselves) then cool, whereas this isn't for the card holder, will be registered in my name and kept at my address.

Not working out for me after all, and need to pay tomorrow.

Anyone know where you can get a same day credit card?!

JusticeForThe96

I've done a bit more research and I'm afraid that's not the case!The … I've done a bit more research and I'm afraid that's not the case!The clause being that "the purchased item must provide some benefit to the card holder to be considered for protection" so if it were a couples car (like yourselves) then cool, whereas this isn't for the card holder, will be registered in my name and kept at my address.Not working out for me after all, and need to pay tomorrow.Anyone know where you can get a same day credit card?!


You use it to take her to the shops every week ??

Original Poster

psychobitchfromhell

You use it to take her to the shops every week ??


It's not a Motability scheme!
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