VW - How best to pay for my new vehicle?

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Wed 30 Apr 2014 10:22
VW - How best to pay for my new vehicle? - cabsmanuk

I am buying a new van (total cost £45000) and have put down a £2000 credit card deposit. The van has to be modified – hence the high cost- and I will give another £10000 interim payment by bank transfer in 4 weeks time. When I pick the van up in July I will pay the remainder of £33000 by bank transfer. The company I am buying from is established and reputable and I have absolutely no evidence of any difficulties they may be in. However, what if something goes wrong between now and when I drive it out of the gates? Section 75 of the credit act covers purchases up to £30000 so even though I paid the deposit by credit card then it doesn’t apply. Section 75a covers up to about £60000 but I’m not sure that applies in my case.

What is the accepted best way to conduct these transactions?

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Wed 30 Apr 2014 10:40
VW - How best to pay for my new vehicle? - RobJP

If it's being purchased by a business, does Section 75 come into it, or is that protection for personal purchasers only ? I'm not sure, and obviously if it's a personal purchase then that's irrelevant.

Assuming it is a personal purchase : The deposit being paid by CC means that you are covered by S.75 up to the limit. Technically, if you buy something for £10k, and pay £100 by CC then you are covered by S.75 for the whole sum. As you will only be paying the final balance sum at collection (when you actually possess the goods), then I'd be happy that the £2k and £10k were covered.

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Wed 30 Apr 2014 13:14
VW - How best to pay for my new vehicle? - cabsmanuk

Thanks for the reply.

It is a private purchase but my reading of S75 led me to understand that it only covered purchases up to the value of 30K, meaning that mine being over 30K would not be covered. I'll read it again - and probably ask my CC provider.

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Wed 30 Apr 2014 14:12
VW - How best to pay for my new vehicle? - RobJP

Hmmm ... yup, from reading it, I come to that same conclusion too.

In which case, I'd suggest an escrow/solicitors account. If they are an established business, then I'm pretty sure they will have in place such with their solicitors already. Failing which, just ask them directly how you will be protected in the event of them going bust.

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Wed 30 Apr 2014 21:27
VW - How best to pay for my new vehicle? - oldtoffee

<<< they are an established business, then I'm pretty sure they will have in place such with their solicitors already. Failing which, just ask them directly how you will be protected in the event of them going bust.>>

A variation on this good idea. Run a credit check on them. If it doesn't come back really solid, say you're concerned about their rating and could they do it via a solicitors bak account. That way the reason you're asking is their fault because they've allowed themselves to show as a bad credit risk.


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