Purchase Protection

[RedCat7]

To avoid the VAT rise I plan to pay for my Caterham kit in full before the end of the year.
What is the best way to protect against non delievery if Caterham go bust or something else happens?
Unlikely I know but £20k+ is a lot to risk.
I have enquired about paying by credit card but Caterham charge a 1.5% fee.

[James.S]

Doubt you will get any insurance for less than the 500 notes you will save.

[Nicodema]

RedCat7 said:

I have enquired about paying by credit card but Caterham charge a 1.5% fee.

There you go, £300+ for the peace of mind. Sounds like you've answered your own question. I agree, you won't find PP insurance for much cheaper than that.
Martyn

[sfaulds]

I'll insure it for £250

[sjmmarsh]

Don't forget that you will get cashback using a credit card (if you get the right one) so reducing the fee further still.

Steve

[James.S]

20k plus is a pretty heft limit on a cash back card.

[edb49]

James.S said:

20k plus is a pretty heft limit on a cash back card.

You can put a credit card into debit so that you don't need a large limit... I've needed to do this a few times in the past.

[James.S]

How does that work?

[PC7]

I think you might find that you can no longer put a credit card into debit.
I work in the industry & believe that such a practice is no longer allowed due to that being a favourite habit of money launderers.
However feel free to prove me wrong but I know some of our clients don't allow it any more.

[Swoxy]

Visa debit cards benefit from their chargeback scheme.

[edb49]

PC7 said:

I think you might find that you can no longer put a credit card into debit.
I work in the industry & believe that such a practice is no longer allowed due to that being a favourite habit of money launderers.
However feel free to prove me wrong but I know some of our clients don't allow it any more.

To be honest I've not done it for about 3-4 years, possibly longer... so rules may have changed in the mean time. I wasn't money-laundering though

[jonnyleroux]

If you pay the deposit for the car on a card (say £2000), then pay the balance on a debit card, i'm pretty sure you're covered for the full amount of the purchase by the credit card company.

ETA: thought so, google 'consumer credit act section 75'. as long as it's no more than £30K you're sorted.

Jonny
BaT

Edited by jonnyleroux on Sunday 5th December 21:08

[Nicodema]

Nice spot Jonny! That's a lovely bit of legislation. You infact only need to put the first £101 on your credit card, so the credit card surcharge should be minimal. Sweet!