Deposit on car, protection against liquidation?

Stevie Dakota

A family member is buying a new car and a deposit is being paid, car is a factory order so 3 months away. What is the best way to pay a deposit yet get some kind of re-assurance that if the company goes bust in that time you have some comeback. Is €1000 too much of a deposit given how fragile things are? Car value is €14,500, what is the smallest deposit acceptable?

Also how best to pay, cheque, VISA, bank draft? Does it matter?

Anan1

I would think CC is the safest, pay the smallest deposit acceptable to the garage. Perhaps ring your CC company first to clarify their cover in the event of the garage going under.

robbie99

Credit card is best. You can go to your credit card company and claim back any money paid on the basis that you never received the goods or services you ordered. The credit card company (bank) will then go through their process of recovering their debts from the liquidated company. It's much easier for them as the banks along with the taxman have their debts cleared before ordinary debtors.

Stevie Dakota

Cheers lads, CC it is, and as little as they will accept!

mickdw

I paid €500 deposit on a factory order car of much higher value than that. Give them very little and yes credit card is the way to go. Otherwise you would go to the bottom of a long list of creditors and have no hope of money back