So I've seen a couple of mentions on other threads about this but was just hoping for some clarity. Heading to a dealer at the weekend to buy a caravan. We are in a very fortunate position where we could, if we wished, pay cash; however I have noted comments on some threads that finance companies might be a better option and paying the deposit on credit card? Could we then just pay off the finance agreement say after a couple of months? Would there be any penalties for doing so? Would we continue to get the protection that buying through finance companies provides after we pay it off? All seems a bit of a minefield to me so any advice is appreciated.
Kind regards
Definitely pay part with your CC.
You don’t quote the value of your intended purchase?
In order to enjoy Section 75 protection of the Consumer Credit Act in the UK, your single purchase must cost more than £100 but not more than £30,000. All or part of the purchase must be made with your CC.
This means that even if you paid a deposit of £100 or less with your credit card, the entire purchase is protected if the total price falls within the £100 to £30,000 range.
Buying on a Finance loan you must study the small print . Some contain an early payment penalty clause which may cost more than you expected.
Your last point about continuing protection if the loan is paid off earlier needs a bit more checking. I see it will be the same as your CC. After all we do settle our CC each month!
Buckman on here will know😁
Facebook
Twitter