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New Caravan Purchase


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Hello. Could I please have some advise regarding purchasing my new caravan.

 

I have paid a deposit on my debit card.  I am hoping to collect new van around March.

 

I am paying for the caravan with part exchange 16,000 and 8,000 from savings. 

 

I have never owned a credit card and don’t even know how to get one! 

 

Questions;

 

If I use a credit card to pay for part cost of the purchase , will this give me any protection if there is a problem with the caravan and if so what type of protection?

 

 Can I pay a very small amount of the 8,000 with a credit card?   And if I could do this,  how much is the smallest amount I could pay on a credit card?

 

Sorry for dumb questions 😬

 

 

 

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"I have paid a deposit on my debit card"

"I have never owned a credit card and don’t even know how to get one!"

 

If you do not own a credit card how have you paid the deposit?

 

As for the smallest amount you can pay via credit card, that may be a question for the dealer as they may have a minimum.

 

macafee2

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1 hour ago, macafee2 said:

"I have paid a deposit on my debit card"

"I have never owned a credit card and don’t even know how to get one!"

 

If you do not own a credit card how have you paid the deposit?

 

As for the smallest amount you can pay via credit card, that may be a question for the dealer as they may have a minimum.

 

macafee2

He paid the deposit with his "debit card" as he said?  why the confusion ? a credit card and debit card are different, one is credit one if from your account so not borrowed money. 

 

you normal have to have at least 100 quid on the credit card to be covered by section 19 which make the card company as liable as the supplier. but its simple, just use a 1000 quid on the C- card and clear the balance of it at the first statement  date, you have then got the cover you need, don't then  cancel the card as you will then no longer have the cover as far as i know. 

 

Danny 

 

 

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Get a credit card pronto and pay at least £100 with it. Don't be fobbed off by the dealer. 

 

To get a credit card, just contact your bank. They will give you one. 

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Graham

 

Unless otherwise stated all posts are my personal opinion 

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It isn't about how much you pay by credit card, it's about the total cost of the purchase being between £100 and £30,000.

You could pay much less than a £100 deposit by credit card to get full Section 75 Consumer Credit Act 1974 protection as long as the total amount due is between the relevant parameters.

https://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act

Edited by Legal Eagle
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1 hour ago, Dannyp said:

He paid the deposit with his "debit card" as he said?  why the confusion ? a credit card and debit card are different, one is credit one if from your account so not borrowed money. 

 

you normal have to have at least 100 quid on the credit card to be covered by section 19 which make the card company as liable as the supplier. but its simple, just use a 1000 quid on the C- card and clear the balance of it at the first statement  date, you have then got the cover you need, don't then  cancel the card as you will then no longer have the cover as far as i know. 

 

Danny 

 

 

dyslexia, read it a few times and came up with the same thing 

 

macafee2

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When he gets a CC his provider will set a limit, mine and I expect most of us would not be able to buy a caravan outright with that value.  So I pay deposit via my CC and pay the balance at the dealers with Debit card via direct bank transfer.

I do same with car purchase, I thought this was normal way to go about things.

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Regards, David
Ford Kuga ST line 2ltr. Diesel 2017,  Bailey Pursuit 11 400/2 2018, Emove em303 motor mover, Hyundai 1000i Generator.

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When we purchased our caravan back in July from a local dealer,I'm sure I seen a sign on their window....."Credit cards not accepted"🤔

Edited by George&Ade
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10 minutes ago, George&Ade said:

When we purchased our caravan back in July from a local dealer,I'm sure I seen a sign on their window....."Credit cards not accepted"🤔

I've come across businesses saying that due to their bank having removed the service from them due to the business not operating securely, yes rare but seen it.

I have a dealer nearby who does not like to pay his bank a fee so refuses payment by CC of small amounts.

Regards, David
Ford Kuga ST line 2ltr. Diesel 2017,  Bailey Pursuit 11 400/2 2018, Emove em303 motor mover, Hyundai 1000i Generator.

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Is it a brand new van or used? Either way you will get some form of warranty. The other thing you could do is to have it independently inspected before you take it home. I plan to do this next time I buy a (brand) new van. I missed a few bits that need putting right on my present van (also bought new)....however it was my first one....

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Thank you for all your help. 

Sorry macafee2 I should have said “with my debit card”. 
 

I should have paid the deposit with a credit card, I know, but you live and learn.  

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49 minutes ago, ed90 said:

Thank you for all your help. 

Sorry macafee2 I should have said “with my debit card”. 
 

I should have paid the deposit with a credit card, I know, but you live and learn.  

I think its my fault, not yours I apologise

 

macafee2

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Our car dealer won't accept more than £1000 by credit card. I shouldn't panic too much.

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As long as you pay an amount by credit card, or through another form of credit (like HP) then the card issuer/lender becomes joint and severally responsible for the whole transaction along with the merchant. This applies providing the total purchase price is between £100 and £30,000. 

 

This has nothing to do with a merchant's refusal to accept credit cards per se or for over a certain amount. A merchant may decide not to have card facilities, it's not mandatory and there are certain card scheme rules that Visa/Mastercard insist on regarding security and confidentiality of data that a merchant may not be able to comply with. In addition whilst card acquirers (processors) charge debit card transactions at pence per transaction, credit card transactions are charged at a % of the value. So using a debit card to pay £10,000 for a caravan might cost the merchant, say £1, the same transaction using a credit card might cost them £150. A substantial difference and the main reason merchants won't take credit cards for high value transactions.

 

If you use a debit card to pay you don't get the protection of the Consumer Credit Act in the same way but you might be able to invoke card scheme rules and make a claim under their chargeback systems, but it's not so clear cut as the CCA liability.

 

One other little nugget that isn't generally known, but if you use the card itself for the transaction, (known as cardholder present) the liability rests with the card issuer. However if you provide the card details online or over the phone etc (known as cardholder not present) then card scheme rules say the liability for the transaction under CCA passes from the card issuer to the card acquirer i.e the organisation that processes the merchant's transaction into the card scheme's system. This is because the acquirer recruits the merchant and provides access for their card  transactions and are therefore expected to validate and monitor the merchant to ensure transaction are safe and secure. That's why, in part, credit card transactions cost merchants more because of the potential losses of merchant fraud and businesses folding that card issuers and acquirers have to cover.

 

SDA (retired Senior Manager Small Business, NatWest Streamline Merchant Services)

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I've got nothing to do on this hot afternoon

but to settle down and write you a line.

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You should get a credit cad and pay at least £100 on this and you get the additional protection provided by the credit card company. If you used HP this would give you more but this does not seem to be the case. 

The main point here s that both dealers and manufacturers have failed recently so guarantees and rights against dealers are limited but the credit card company is still going to be there unless something unforseen happens. 

Guarantees are very limited anyway so I would not rely on them but do follow the requirements just in case you have a valid claim.

 Personally I would take out a credit card and use as part payment when you pick up the caravan to avoid the possible problems covered above.

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3 hours ago, Wildwood said:

You should get a credit cad and pay at least £100 on this and you get the additional protection provided by the credit card company. If you used HP this would give you more but this does not seem to be the case. 

The main point here s that both dealers and manufacturers have failed recently so guarantees and rights against dealers are limited but the credit card company is still going to be there unless something unforseen happens. 

Guarantees are very limited anyway so I would not rely on them but do follow the requirements just in case you have a valid claim.

 Personally I would take out a credit card and use as part payment when you pick up the caravan to avoid the possible problems covered above.

 

WW you don't have to pay £100 or more by credit card, the cover applies on any transaction that totals above £100  and below £30,000. So you can pay, say, a fiver if you want on credit card and the rest in cash and you still get the cover under CCA provided the total purchase is more than £100. 

I've got nothing to do on this hot afternoon

but to settle down and write you a line.

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Thanks, to be honest I would feel a fool paying £5 on a credit card and £7,995 in cash, but if it works why not. I do get vouchers back on mine so I would to be tempted to pay far more.

I would normally pay the deposit this way to get cover for this if the dealer failed as well as the other advantages.

Edited by Wildwood
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Just now, Wildwood said:

Thanks, to be honest I would feel a fool paying £5 on a credit card and £7,995 in cash, but if it works why not. I do get vouchers back on mine so I would to be tempted to pay far more.

I would pay the amount of your CC limit then rest in cash this would look perfectly normal, I'm sure many do this.

Regards, David
Ford Kuga ST line 2ltr. Diesel 2017,  Bailey Pursuit 11 400/2 2018, Emove em303 motor mover, Hyundai 1000i Generator.

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You may find that your Dealer will not accept payment of the balance (or part of it) by credit card.

I too have a new van on order for March delivery (Covid permitting).

I paid £1000 deposit on credit card (always have done that for every van we have bought) and the Dealer stipulates that the balance due  is to be paid either by cheque, which must clear before collection, or by debit card on collection.

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