Paying for new car?

[cosworthy2000]

So, my new wagon has arrived at the dealers, and I pick up Friday. I'm a little intrigued by them wanting payment 24hrs before I collect, especially since the balance wll be going on a debit card, so as good as a cash payment.
Is this normal? Every other car I've bought I paid the same way, and then drove the car away.

Any advice? Just seems a bit odd that I'm paying for something and then leaving in their care for another day.....

[andy72]

dont pay them until you have inspected the car and its as you agreed at the time of sale. Paying a deposit is normal but beingpaid up front is not.

Its not unheard of for a company in toruble to get as much cash up front, then close the doors leaving yout o deal with the creditors.

Dont pay upfront and if they insist, then walk away and find a car somehwere else. Its a buyers market.

[david philips]

i agree with andy and as far as i know you have no payment protection useing a debit card,buyer beware.

[Bill_56]

Agree with others. I purchased two new Saabs (1998 & 2000), for which the dealer accepted personal cheque, written when I took delivery. And it wasn't a dealer I'd ever met before - on the first occasion I was trading in a nine year-old Astra. A new Polo circa 2003 did, if I remember right, did ask for bankers draft or similar, but not payment in advance. I'd be deeply suspicious, if it were me...

One possibility is that the dealer knows the car's been slightly damaged, and wants to make it difficult for you to 'back out', so take a VERY good look at the car before accepting it. You'll probably be asked to sign a form saying the car's OK, so don't do so until you've had a very good look at it.

All that said, hey... enjoy your new car! I'm envious. Now in retirement, my savings no longer extend to new cars. It's about the only aspect of working life I actually miss!

[fenton_jd]

GIVE THEM NOTHING until you've looked over and checked the car is OK!!!!!!

[RoscoMac]

Yip, sounds iffy. Dealers are usually pay on collection - unless its a Bankers Draft or personal cheque, which nowadays, they generally want cleared first, which is fair enough. Can't see why they want Debit Card payment through 24hours before.

R.

[SonyVaio]

Yip, listen to the general consensus and take heed the warnings!

Do not pay up front, do not 'pre-authorise' your card payment over the phone - some places try to call it pre-authorising' but this means 'customer not present' but thank you we have your money now anyway. Do not pay with debit card and use a credit card, the credit card issuer is then dually responsible for the car and its worthiness etc... - far more protection if something goes wrong.

Just tell the Dealer if they phone and persist to want payment that your very sorry but funding is being transferred from other accounts therefor monies will not be available until the collection date. Of course they can try and pull a fast one and want to delay your collection until you have paid.

Basically just don't pay a single penny until you are 110% happy with the vehicle and you have looked over every nook and cranny, tested every button, switch, handle, lever, lights both interior and exterior (fogs front and rear), don’t forget all internal dash lights and ensure all the correct ones come on with the ignition and the correct ones go out too. Ensuring you have all the correct equipment (spare, tools, triangle, first aid kit) that is relevant. Insist on taking the car for a test drive too before you commit to payment, don’t just take it 2min down the road to the first roundabout either ensure you are gone for a good 30min - 1hr. Test every gear (inc reverse!), test the mirrors (electrical), test the seat for all of the relevant adjustments (forward, rear, up, down, tilt back/forward, heated seats, lumbar support) whether they are electric or not and don’t forget the passenger seat too, then there is the fabric/leather make sure every square inch is perfect. Check all seat belts function correctly. Check all steering wheel controls all function (sound buttons, cruise, telephone) as applicable. Do a physical check of all tyres for both condition and defects then ensure the alloys are in 'mint' condition and not even a blemish! Make sure all doors function correctly (test handles from the inside and the out) not forgetting 'Child Locks' function as they should. Check every single outer pannel for the slightest blemish, dink, scuff, scrape and mark. Note all defect down in a notepad and even better take photo evidence too. Ensure that you check both front and rear bumpers fully and also check the underneath of the car. The horn, steering adjustment, any smart systems such as BLIS or adaptive cruise if fitted, ensure you check the radio out completely for all the different adjustments (volume up/down, balance, fade, CD works (take one with you & an .mp3 disc), auto tune for the radio (ensure you have good radio reception). Fully check over the SATNAV (if relevant) all buttons and functions and actually set in a destination for your 'TEST DRIVE' and ensure it does what it says on the tin. Pay close attention to all lights and lenses that there is no defects or cracks, this goes for all the glass and especially the windscreen. Check the paintwork and that all panels match up as they should, ensure you have a really good match between bumpers and bodywork.

I know that isn't in the most logical order but it was just as it came into my head. Lastly don't forget that 'PAPERWORK' is extremely important and don't let the dealer just scim over it. Ensure you pay particular attention to all documentation and also ask for a completed copy of the PDI (pre delivery inspection report) if not given. Don't be fobbed off by any excuse - bare in mind that they want your money at this point, if you give them the money it is game over and they couldn't care less post payment. NEVER sign anything until the very end either.

Once completely satisfied with every little detail then sign the dotted line, pay your money (credit card) and live happily ever after with your car. If there are any minor points picked up either don't pay for the vehicle until they are put right by the dealer or you could offer to pay half and then the other half once the points rectified, you could also try at this point to get a little extra such as free matts or mud flaps or a paint treatment etc...

Hope it all goes well and the experience turns out to be a pleasurable one because this is what picking up a new car is supposed to be. The dealer has already put a downer on it for you due to asking for money first! Make sure they know this too and perhaps it may make them think twice if they feel they are offending people (i doubt it though). As it is a very exciting time collecting a new car don’t be overwhelmed by the beauty and excitement and get your inspector gadget head on. If possible take a friend along too (other than family) as they will give you very good impartial advice and point out bits and pieces that would otherwise be missed. A friend will be more inclined to say they have spotted something and look over the vehicle with a fine toothcomb rather than just generally scouring over it.

:star-wars-smiley-01

[cosworthy2000]

Thanks chaps. It is a brand new car (XC90), so I would hope everything works OK.
I paid an initial £1000 deposit when I ordered the car, this was with a credit card, so I believe I have some cover though this, even though I have only used it to pay a small amount.
So, payment on the day I collect, after I have given it a thorough going over. Since it's new is there any need to test drive it?
I'm told it's 'company policy' that they want payment 24hrs before collection, and the maximum they allow on credit card is £1000, is it safe to assume this is not the case and argue the toss tomorrow when I'm going over to sign the finance agreement and provide proof of insurance so they can tax it for me?

Forgot to mention, it's main dealer supplied, Squire Fearneaux...

Thanks again.

[kebab10]

Doesnt matter if its the Queens Jewellers. Its your money and if they dont like "your" terms of paying AFTER you have inspected the vehicle and driven it, then walk away. As you already know, cash is king.
I paid for a car with a debit card, only a couple of grand but had driven it, got it serviced and taxed and no problems at all.

No dont pay 24 hours ahead.

[fenton_jd]

Put it this way, the dealer isn't going to not sell you the car.

Inspect it all the way round. If you drive it away, any scuffs etc they'll claim it was done by you. Make sure the motor is as it should be. Make sure the Stereo is the correct specification etc etc.

You're about to make a heavy financial investment in that dealership. Accept nothing but perfection.

[Bill_56]

I'm not so sure about paying by credit card.

Last time I asked, the dealer pointed out that the small percentage fee that retailers pay on CC transactions amounts to many hundreds of pounds when selling a car, and he'd require me to pay that additional amount. So I paid by debit card.

That didn't actually sound unreasonable to me. Even if the dealer were willing to bear the transaction fee, I wouldn't like the idea that the credit card companies (banks) are getting hundreds of pounds handed to them each time a new car is sold.

[SonyVaio]

I'm not so sure about paying by credit card.

Last time I asked, the dealer pointed out that the small percentage fee that retailers pay on CC transactions amounts to many hundreds of pounds when selling a car, and he'd require me to pay that additional amount. So I paid by debit card.

That didn't actually sound unreasonable to me. Even if the dealer were willing to bear the transaction fee, I wouldn't like the idea that the credit card companies (banks) are getting hundreds of pounds handed to them each time a new car is sold.

Dude Seriously????

Every single post has said don't pay before you collect. You must be mad.

So the dealer has spun you a few lines and you've melted like a chocolate fireguard!

There is many ways to pay for a vehicle. If you were not wanting to pay by credit card then fair enough, there is a cost involved but that cost is like an insurance policy. If your car has some catastrophic failure and the dealer/Volvo says they are not going to pay etc... then your backup is the credit card company who will just do a chargeback of the money and it really is back to the dealers problem (bit more involved than that basic explanation but i'm sure you get my drift). Not sure how covered you are or are not by paying the deposit of £1000 by credit card.

By paying by debit card that is practically the same as paying by cash (there is still some cover even with a debit card). You could still have held off and then done a bank transfer via online banking to the dealer post check over or Escrow (3rd party that holds the money and only release after you give go ahead, the money is non returnable to you once go ahead given and funds only released to the seller).

So what you going to do now if the there is say a bit of damage on the car? The dealer has your money so instead of saying no don't want it the dealer will be like 'sorry mate it's your you've paid for it'. Then the fun begins, but again the dealer ain't bother because he's already been paid.

All said and done, I hope it all works out really well (and I'm sure it will). Enjoy the pleasures of purchasing a 'Brand New' car but don't let that detract from giving the car a proper going over. I'm sure your dealer is very reputable and wouldn't pull the wool and all that. Not all dealers are the same, if I can dig up the post I was reading a while back (on here) about what a dealer had done after a 'Brand New' car has been damaged prior to delivery then I'm sure you'd think twice before you paid and will definitely do that test drive. Just remember your are but ONE customer to the dealer, once your out the door he isn't bothered about you until your back to spend some more money and then you'll get a big smile and welcoming 'How are you today Mr XXX once again.

YES DEFINATELY DO TAKE THE CAR FOR A TEST DRIVE BEFORE YOU SIGN FOR IT -A GOOD TEST DRIVE!!

There is no point in you paying your money, signing the dotted line then two minutes down the road your really unhappy because of clunks from the gearbox or engine stuttering or your getting wheel wobble etc...

Fingers crossed!

:star-wars-smiley-01

[Bill_56]

Dude Seriously????

Every single post has said don't pay before you collect. You must be mad.


And I emphatically said the same, but sorry if my wording misled you. I simply stated that the dealer is likely to refuse payment by credit card for a car costing tens of thousands as it will cost him (the dealer) many hundreds of pounds in credit card fees.

And I do sympathise with the dealers in that respect, it's different from selling a used car for just a few thousand, where they can factor CC fees into the deal that they strike.

I certainly wouldn't advise paying in advance, regardless of whether the payment be by credit card, debit card, or freshly gown carrots.

[SonyVaio]

Sorry Bill,

Don't know if I just picked it up wrong but when I read it (to me) I thought that you had gone and paid on your debit card already?

I just know what some dealers can be like and hate the thought of anybody being seen off by them. Only got your interests at heart.

I'm sure the dealer gets people paying vast sums of money via credit card all the time. I'm sure they will offer the service even if that means them adding on a couple of % to cover the cost - effectivey you paying the CC charge. In this case the dealer wouldn't care how much you do or don't pay via CC.

Don't forget some lovely pics once you've obtained ownership though. All the best for Friday and I hope it all goes well.

:star-wars-smiley-01

[Bill_56]

Don't forget some lovely pics once you've obtained ownership though. All the best for Friday and I hope it all goes well.

:star-wars-smiley-01

Oh dear, I do seem to have confused things, it's not me buying the new car, I wish it were.

I was referring to my last major purchase (which was actually a year-old S60), for which the dealer emphatically refused to accept a credit card. But I'm pretty sure I popped the same question when buying the new Saabs, and got the same blunt answer both times. On all these various occasions, I paid by debit card or personal cheque, but only after inspecting and accepting the vehicle.

[JamesV70R]

http://volvoforums.org.uk/showthread.php?t=123624

^^ The thread SonyVaio is referring to I believe.

I was also under the impression that credit and debit card "fees" were only applied to transactions UNDER a certain value.

You'll have seen it in your local takeaway - "We regret that we can only take card payments for orders over £5" for example, or "We will charge a 25p card fee for any orders under £X"

[ewanc0]

http://www.whatcar.com/car-advice/buying/payment/3141776

[cosworthy2000]

I've followed that thread, I have to say the experience would have put me off.
Pretty set now, they can have balance by debit card after I inspect the car on Friday.
If that ain't good enough for them, may have to walk away, but what of my £1k deposit??

[kebab10]

The £1k deposit was paid by credit cards for goods? Not taking the goods? Its your money. Any problems, contact the credit card types and get them to do a chargeback. Dont forget the money saving site from Martin Lewis.
http://www.moneysavingexpert.com
Plenty of tips there for you.

[Chaddie]

I've always paid the deposit on a Credit Card, which is always between £1k to £2k; if you pay over £2k the dealer will normally add a surcharge since they have to pay a % of the amount to the credit card company and it's why they don't want the full on a credit card, I've always paid the remaining balance on the day I collect the car paying on a debit card.

The debit card payment is as good as a bankers draft to the dealer, they know it's cleared funds.

DO NOT PAY THEM IN ADVANCE, ONLY PAY THEM WITH A DEBIT CARD ON THE DAY OF COLLECTION AND AFTER YOU HAVE INSPECTED THE CAR....

[SonyVaio]

Oh dear, I do seem to have confused things, it's not me buying the new car, I wish it were.

I was referring to my last major purchase (which was actually a year-old S60), for which the dealer emphatically refused to accept a credit card. But I'm pretty sure I popped the same question when buying the new Saabs, and got the same blunt answer both times. On all these various occasions, I paid by debit card or personal cheque, but only after inspecting and accepting the vehicle.

DOH!! - I'll get my coat for that one TAXI... :car-smiley-003:

Sorry Bill & Cosworthy2000 for the mix up. I hope the right sort of info came out anyway.

http://volvoforums.org.uk/showthread.php?t=123624

^^ The thread SonyVaio is referring to I believe.

I was also under the impression that credit and debit card "fees" were only applied to transactions UNDER a certain value.

You'll have seen it in your local takeaway - "We regret that we can only take card payments for orders over £5" for example, or "We will charge a 25p card fee for any orders under £X"

Thanks Villan, that was indeed the thread I was looking for.

Apart from this minor niggle of wanting payment first I'm sure the experience will be a pleasurable one.

:star-wars-smiley-01

[cosworthy2000]

Well I pleased to report that all went well this morning. No issue with me paying on collection, the reason given for wanting payment up front was just in case the card issuer refused payment on the day, a risk that sits with me and will prevent the car from being released, so fingers crossed that won't be a problem.
Had a quick looksy at the new car, very nice, love the wheels, and the new side steps are an improvement on what the old one had.

All excited now!!

[SonyVaio]

Well I pleased to report that all went well this morning. No issue with me paying on collection, the reason given for wanting payment up front was just in case the card issuer refused payment on the day, a risk that sits with me and will prevent the car from being released, so fingers crossed that won't be a problem.
Had a quick looksy at the new car, very nice, love the wheels, and the new side steps are an improvement on what the old one had.

All excited now!!

To ensure that it is not a problem with payment you can always just inform your bank and pre-warn them of the intended purchase of £xxxx.xx on the card on Friday 16th Spet.

The bank should add a note to the system and all should be well, alternatively the dealer has the option to do telephone authorisation (pita) where they will phone for authorisation then pass the phone to you so you can ID yourself with the normal banking Q's etc.. the payment will then be authorised to proceed.

Either way you shouldn't have a problem. DO THE TEST DRIVE THOUGH!

:star-wars-smiley-01

[cosworthy2000]

To ensure that it is not a problem with payment you can always just inform your bank and pre-warn them of the intended purchase of £xxxx.xx on the card on Friday 16th Spet.

The bank should add a note to the system and all should be well, alternatively the dealer has the option to do telephone authorisation (pita) where they will phone for authorisation then pass the phone to you so you can ID yourself with the normal banking Q's etc.. the payment will then be authorised to proceed.

Either way you shouldn't have a problem. DO THE TEST DRIVE THOUGH!

:star-wars-smiley-01

I rang the bank to forwarn them, and was told we cannot add a note to this effect. Looks like the long-winded approach....

[SonyVaio]

What bank is that?

It shouldn't be a problem for any of them, certainly done this in the past with Barclays (several times).

:star-wars-smiley-01

[kebab10]

I rang the bank to forwarn them, and was told we cannot add a note to this effect. Looks like the long-winded approach....

I bet its Santander cos they are sh1**. Used to be Girobank, then A+L and now some spanish thugs. Must move my account from then.

[emmdee]

Cosworthy - enjoy the new car, mate. I'd settle for an old car at this point :)

m.d.

[SonyVaio]

Cosworthy2000 - fingers crossed for you today.

You know you'll have to post a pic or two up later on???

Enjoy!

:star-wars-smiley-01

[cosworthy2000]

All went smoothly today. Had a good look over the car, a 40 min test drive, and in spite of me advising the bank again this morning, I still had to go through the security questions. Car is lovely, like putting on comfy slippers (I used to have a 55 plate Ocean Race XC90, sold to fund house move, so it's a familiar wagon).
Biggest frustration of the day, filled it with diesel (must remember that, as the V70 was petrol..) and my card got refused. Odd since it's the same one I used to pay for the car. Later conversation with the bank to be told I'd already spent my daily limit, hence the refusal to allow a £75 fuel charge, very odd..
Now just need to play with the new toys, already discovered the USB connection which is great, I can take my entire music collection in the car!

Thanks for all the advice given folks, really appreciate it, and made my first ever new car purchase that bit easier.
I should also mention that, despite a couple of minor hiccups, I was very pleased with Squire Furneaux in Pirbright, Guildford, and the 2 sales guys I dealt with (Keith and Phillip). Got a decent price, and they were really quite receptive to my requests.

[Bill_56]

Glad to hear there was innocent explanations for it all. I can't speak for everybody, but I suspect I speak for many when I say....

..I'm deeply envious!

Enjoy! Swallow any pride that may get in the way, and take lots of photos soon for you own benefit & memories, before the shine wears off, even if you don't post them online. I deeply wish I'd done more of that when I was buying 'new'. What a shame you can't capture that new car 'smell' on camera :)

But if you do post pic's online, I'd suggest you obliterate the registration number, the internet's a dodgy old place.

[cosworthy2000]

Glad to hear there was innocent explanations for it all. I can't speak for everybody, but I suspect I speak for many when I say....

..I'm deeply envious!

Enjoy! Swallow any pride that may get in the way, and take lots of photos soon for you own benefit & memories, before the shine wears off, even if you don't post them online. I deeply wish I'd done more of that when I was buying 'new'. What a shame you can't capture that new car 'smell' on camera :)

But if you do post pic's online, I'd suggest you obliterate the registration number, the internet's a dodgy old place.

Thanks. I've been through the whole 'guilt' thing about spend so much on a car, but I have worked very hard the past 4 years, saved hard and gone without lots of nice things, so that's worn off pretty quickly!
Plan to take lots of piccys, will post if I figure it out. Point ref No Plate noted!

[XC60MY12]

Just to add my own experience. My dealer, Taggarts of Motherwell, took no deposit. I examined the vehicle at the dealer shortly after it was delivered as I delayed collection a couple of weeks to get 61 reg (at no extra charge). I warned my bank (none of those mentioned) that I would be paying by debit card the next day. They replied that this was not necessary as the only way a debit card payment would be refused would be insufficient funds. Prior to paying I had a full all-round visual inspection following which the transaction went through in seconds.

When I got the car home I had it detailed inside and out by a professional. He spotted a couple of very minor flaws. I took the car back to Taggarts to register the flaws in case of problems further down the line.

All in all a very pleasant buying experience between gentlemen that happens all too infrequently these days.

[CJL]

in spite of me advising the bank again this morning, I still had to go through the security questions.

When we went to pick up my wife's car a few years ago we paid the balance by debit card on the day and unsurprisingly when I entered my PIN it got referred.

What I didn't realise is the money has already left your account and is in some kind of "holding" account. When you answer all the security questions they are supposed to move the money from the "holding" account to the dealers account.

What the bank actually did was to take the money from my account again to pay the dealer effectively taking the money twice, leaving me tens of thousands overdrawn!

Took a good few days for them to accept their mistake and refund me the extra payment.