Which car dealers accept Credit Cards in the UK – pros, cons and alternatives

Q: Will I still get Section 75 protection if I only pay the deposit by credit card?

Yes, as long as the total purchase price is between £100 and £30,000, Section 75 protection usually applies even if you only part-pay by credit card.

Aug 16, 2025 | Guides, Personal Loans

Editor, Consumer Finance: Michelle Blackmore

Last Updated: August 22, 2025

If it is an option, using a credit card to buy a car has both advantages and drawbacks. Purchases between £100 and £30,000 may be covered by Section 75 of the Consumer Credit Act, which means you have the right to claim directly against your card issuer if the dealer fails to deliver the car or misrepresents what you are buying. This protection has conditions and does not apply in every situation. Some credit cards also offer rewards, cashback or loyalty points on large transactions, but these benefits can be offset by fees or charges.

There are also important risks to consider. Credit card interest rates are typically higher than those available through car finance or a personal loan. Unless you pay the balance in full each month, you could face significant interest costs. Some dealers may add a handling fee for card payments, which can outweigh any rewards. Large transactions can also increase your credit utilisation, which may temporarily affect your credit score.

Because of these factors, it’s sensible to compare buying with a credit card against other options such as a personal loan or dedicated car finance. These alternatives may offer lower fixed interest rates, structured repayments, and clearer affordability. If you do choose a credit card, look for one with a low APR or a promotional 0% purchase offer and make sure you have a realistic plan to repay the balance within the offer period.

Important: Buying a car on a credit card can be expensive if you don’t repay in full each month. Always compare the total cost with other forms of finance before deciding. This information is general and should not be taken as personal advice.

Key Takeaways

Some UK dealerships accept credit cards for full or partial payment, while others only for deposits.
You will need a high enough credit limit and your card issuer’s approval for high-value transactions.
The best credit card for a car purchase would ideally offer 0% interest for a set period and rewards such as cashback or loyalty points.
Alternatives such as PCP, HP, leasing, or personal loans may have lower long-term costs.

Which car dealers accept credit cards in the UK?

Payment policies differ between dealers. Many accept credit cards for deposits, and some will allow full payment, although limits and processing fees may apply. The ability to pay by card often depends on the dealership’s merchant agreement and the transaction size, so always confirm their policy before you buy.

Can you buy a car on a credit card?

Yes, but it depends on the dealership. Some allow full payment by credit card, while others only accept card payments for a deposit.

Factors to check before paying by credit card:

Dealer policy: Confirm whether they accept credit cards for the full amount or only the deposit
Credit limit: If the car price is above your limit, you may pay part in cash or request a temporary limit increase.
Issuer restrictions: Some card providers block high-value transactions such as vehicle purchases.

Pros of using a credit card for a car purchase

0% interest offers: Spread the cost without paying interest during the promotional period.
Rewards and cashback: Earn points, cashback, or air miles on a large purchase.
Section 75 protection: Purchases between £100 and £30,000 are protected if the dealer fails to deliver or misrepresents the car.
Flexibility: Enables a quick purchase without arranging finance in advance.

Cons and risks

High interest after 0% period: If you do not repay in time, credit card APRs can be much higher than loan rates.
Dealer fees: Some dealerships charge 2 to 3% for credit card transactions.
Credit limit issues: The full price may not fit on one card.
Impact on credit score: Large balances increase credit utilisation, which can reduce your score temporarily.

Using a credit card safely for a car purchase

If you decide to buy a car using a credit card, it is important to plan the purchase carefully to avoid unexpected costs and potential damage to your credit score. A few sensible steps can make the process smoother and more cost-effective:

Confirm the dealer’s payment policy in advance so you know whether they accept credit cards for the full amount or only for a deposit.
Avoid maxing out your credit limit where possible, as a high utilisation rate can temporarily lower your credit score.
Compare the total cost of using a credit card against other options such as personal loans or dealer finance to see which works out best overall.
Look for a card with a 0% purchase APR and no fees to minimise borrowing costs during the repayment period.

By following these steps, you can reduce the risks associated with high value credit card purchases such as a car while making the most of any available rewards, interest-free periods, and consumer protections.

Compare the total cost of using a credit card with other finance options such as personal loans or dealer finance. Our Best Car Loans guide explains how different car finance types work and how to find competitive offers.

Mintip: Looking for a credit card with a 0% purchase period or rewards? Use a free credit card eligibility checker to see which cards you might be approved for without affecting your credit score.

Should you buy a car on a credit card?

If you can clear the balance within your interest-free period, it may be a useful option, especially if you can earn rewards or cashback.

If not, the higher APRs could make it more expensive than a personal loan or dealer finance.

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Mintify Limited, trading as Mintify, is an Introducer Appointed Representative of Creditec Limited who acts as a credit broker, not a lender.

Alternatives to a credit card for buying a car

If paying by credit card is not the right option for you, there are several other ways to finance a car. These can offer lower costs or more structured repayment terms.

Personal loan: Fixed monthly repayments, often at lower interest than a credit card.
Car finance (PCP, HP, leasing): Tailored specifically for vehicle purchases.
Saving up and paying outright: No interest, but may delay your purchase.
Compare unsecured personal loans: Use an eligibility checker to see offers without affecting your credit score.

If you are considering car finance instead of paying by credit card, take a look at our Best Car Loans guide for detailed comparisons and tips on choosing the right option for your needs.

Comparison: credit card vs personal loan vs car finance

Option	Typical interest rate	Repayment terms
Credit Card	Potentially a 0% promotional APR or an average APR of 25% or higher depending on your credit profile and card terms.	At least the minimum payment per month. If not during a 0% promotional period, this could incur high interest fees. Either way, the balance must be paid off
Personal loan	Average between 5% and 20% APR, but could be higher, depending on lender and your credit profile. Arrangement fees or other fees may also apply.	Monthly instalment payments on a fixed term, usually 1–7 years but early repayment options can be available (check your terms for any early settlement fees)
Car Finance (PCP, HP, leasing)	Varies, often similar to personal loans	2–5 years is typical but this also varies on the lender and the terms offered

All options can be affordable depending on your credit rating and the lender’s terms. A soft search eligibility check can help you understand which type of product you’re more likely to be accepted for.

Mintip: Thinking about using a car loan instead?Compare loan offers and check your eligibility in minutes with a free personal loan eligibility checker. It uses a soft search that will not affect your credit score.

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Mintify Limited, trading as Mintify, is an Introducer Appointed Representative of Creditec Limited who acts as a credit broker, not a lender.

Frequently Asked Questions

Do all UK car dealers accept credit cards?

No. Some accept full payment, others only a deposit, and some do not accept cards at all due to transaction fees.

Can I use multiple credit cards to buy a car?

Possibly, but this will depend on the dealership’s payment processing rules.

Will I still get Section 75 protection if I only pay the deposit by credit card?

Yes, you should still be covered as long as the total purchase price is between £100 and £30,000, Section 75 protection usually applies even if you only part-pay by credit card. It might be worth checking beforehand to ensure you’re covered.

What fees do dealers charge for paying by credit card?

Some dealers charge 2–3% of the transaction value to cover processing costs. Check the terms offered by the dealer.

Can I earn cashback or rewards when buying a car with a credit card?

Yes, but you should check your card’s reward terms to confirm if large transactions are eligible.

Is it better to use a credit card or a car finance loan?

It depends on interest rates, repayment terms, and whether you can repay in full within any 0% interest period.

What happens if I do not repay my credit card balance in full?

Interest charges will apply, often at higher rates than a personal loan.

Does using a credit card for a car purchase affect my credit score?

It can potentially reduce your score temporarily due to higher credit utilisation.

Is buying a car with a credit card the right choice for you?

Buying a car with a credit card can offer valuable benefits such as Section 75 protection, rewards, and short-term interest-free financing. However, these advantages only work in your favour if you can repay the balance in full within the promotional period and avoid high dealer fees.

Before committing, compare the total cost against other finance options such as personal loans, PCP, or HP agreements. Use an eligibility checker to explore the products you are most likely to be approved for without affecting your credit score. By weighing up all your options, you can choose the approach that best fits your financial situation and long-term goals.