Buying a car with credit card?

Hi all,

Just looking for a bit of clarification and people’s thoughts on this.

I’m going to buy a car over the weekend for around £3000 and I’m wondering if there’s any benefits or cons to buying it on a credit card (Amex if it makes any difference)

I could pay by cash but I’m by thinking I could pay it on my credit card and earn 1% Cashback as a nice little bonus and then pay it off at the end of the month. But, I’m unsure if there is any other benefits & does S75 apply to this?

Thanks for the help :+1:

You may be protected under S75 according to this article:

Also check the terms of your particular Amex card as it’ll detail what cover they provide outside of S75.

I don’t see any harm, and the cashback will be rewarding.

As stated, you get more protection under s.75

As long as you pay at least £100 on a credit card, you will be covered for the full value under Section 75.

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I usually save up and then I pay for anything over £100 on a credit card. Straight away I will pay the balance. Section 75 is just so invaluable unlike debit card chargebacks which can give loopholes to banks because it is not a protection in law.

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Why would you not put it on the credit card?!

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If you could pay on cash why not buy on card and pay it straight off?

Check you’re not paying a fee for credit cards, my last car had a £250 fee to use a credit card but they waived that after enough back and fourth

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That’s not actually correct.

As long as the value of the item is at least £100 (and under £30,000) you could pay 1p on the credit card and you’d be covered.

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The misconception is that you have to pay over £100 to be covered… You don’t! The goods must cost more than £100 to be covered, but as long as you pay £1 on your credit card & the rest as you please (cash, debit, bank transfer etc) then you are still covered

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Yes, sorry you are correct :+1:

The perils of misreading documents quickly!

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Most car dealers won’t take more than £1000 on credit card. Just a thought

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If you get rewards on your credit card, and you can pay the balance off in full (or can balance transfer it to somewhere offering you 0% for 12 months or something) so you don’t end up paying interest, then why wouldn’t you use your credit card!

The extra protection is a nice bonus!