Payment for a car

[hstudent]

I've heard 'bankers draft' is the norm for this. Is this the case and if so how can it be arranged?

[MX5huggy]

Just go to your bank and ask for one, maybe ring them so they have it ready for you.

Last time I got a car I paid by Debit Card, if it was under 1k I would just use cold hard cash.

[hstudent]

How long would a bankers draft take to issue?

[Hintza]

What sum of money are you talking about? Upto a few thousand I would really expect csah (bank draft second best option) there is a slight risk with all methods of payments. Dodgy notes or dodgy draft, but you just have to be sensible.

I assume you are buying and if its cheap just take the cash, if you are worried at all take someone with you.

[AdrianHi]

If you are travelling somewhere, the way I've done it is to contact my bank the day before and arrange to have the draft ready at the branch nearest to where I'm collecting the car. That way the seller can come with you to the bank and be sure the bnankers draft is genuine and you can walk to their bank and deposit it straight away.
Been a while since I've done this, Direct Debit card best if it is a car dealer.

[hstudent]

It'd probably be about £3000 at a dealer around 15 miles from my home.

[shop-to-drop]

I imagine the dealer will take a debit card. We bought a new card for £10,640 and it went throughby debit card. You can pay with a credit card too but they charge a fee. When we bought our last second hand car from a private dealer we paid £4000 cash. I'd ring up the dealer and ask. I think you will have to pay the bank for a bankers draft whereas debit card is free.

[hartcjhart]

cash is always king,most dealers will give a bit more discount for it

[Herr Schmitt]

cash is always king,most dealers will give a bit more discount for it

Yes, cash is great, you only have to pay about 50p per £100 to bank it!

[gaz_jones]

I imagine the dealer will take a debit card. We bought a new card for £10,640 and it went throughby debit card. You can pay with a credit card too but they charge a fee. When we bought our last second hand car from a private dealer we paid £4000 cash. I'd ring up the dealer and ask. I think you will have to pay the bank for a bankers draft whereas debit card is free.

My Dad bought a BMW X3 from the local BMW garage for £27,999 and paid by Debit Card. The bank rang up BMW though and asked to speak to my dad so he could confirm security details.

[thescouselander]

The last few times I have bought a car I have just used my debit card. The bank will probably want to charge you for a bankers draft but using a debit card should be free.

[iolanthe07]

Lloyds charged me £10 to issue a bankers' draft. It seemed worth it for the security and not having to wander around with a lot of cash.

[hstudent]

Do you usually get asked for a deposit in advance (by the dealer) if you plan to pay in full, or is that just if you plan to pay in installments?

[Hintza]

If you want the dealer to pull the car from market then yes you will need to pay a deposit. Otherwise he could sell it to someone else in the meantime.

But only ever pay a deposit when you have decided to buy. For example here is £50 I'll be back in an hour with the balance.

If you are still undecided then never ever part with a deposit, unless you are willing to lose it if you pull out of the deal.

[Lemonade Pockets]

1) Cash is not king in terms of a payment. Its a ball ache to adminster, costly and high risk of fraud. In order of preferenance dealers prefer, finance, debit card, credit card, bankers draft, cash then cheque.

2) To the OP ring the dealer and ask them if they take debit card. This is more secure for them, costs you less and is less hassle for everyone concerned.

[mcgsp]

I would like to pay (£8k) by debit card but the dealer, whom I have only talked to by phone, wants me to pay 3 days in advance if I use a debit card.

I assume I'll then have to get a certified cheque which they will take on the day of purchase.

I don't like paying until I have seen the car and checked it over.

Any comments?

[AdrianHi]

Very odd behaviour on their part. I guess it might take a couple of days to clear the debit card payment but it is secure for them.
My mother and I have both paid balance of car purchases on debit cards on sums much higher than £8K so I don't see why it should be a problem for them.

[Inactive]

I would like to pay (£8k) by debit card but the dealer, whom I have only talked to by phone, wants me to pay 3 days in advance if I use a debit card.

I assume I'll then have to get a certified cheque which they will take on the day of purchase.

I don't like paying until I have seen the car and checked it over.

Any comments?

I would find another dealer then, I would not pay 3 days up front for a car.

[poppy_f1]

2 years ago i bought a car at a dealers and paid 4k in cash

[Ebe Scrooge]

I'm surprised at that - buying from a dealer, a debit card is almost always the easiest way, it's cheaper for them and it's instantly guaranteed - i.e. the transaction won't be authorised if the money is not in your account to cover it.

I wouldn't pay up front - except for maybe a small deposit, and if you do this make absolutely sure you get a proper receipt. Failing that, I'd walk away - unless the car you're after is pretty unusual, there will be plenty of other dealers around that are happy to sell to you :-)

[mcgsp]

I have paid more once before to a local dealer, who knew me, by debit card and I am a bit surprised at this garage's attitude.

I am arranging to get a banker's draft to pay them the £8k even although it will cost me £20 as I don't want to pay before seeing the car despite their assurances on the condition of the new car. I did pay the deposit by credit card, however, so I should have that as backup protection.

[Inactive]

If you buy the car, insist that they give you the £20 back, it is for their benefit after all.

[Lemonade Pockets]

I have paid more once before to a local dealer, who knew me, by debit card and I am a bit surprised at this garage's attitude.

I am arranging to get a banker's draft to pay them the £8k even although it will cost me £20 as I don't want to pay before seeing the car despite their assurances on the condition of the new car. I did pay the deposit by credit card, however, so I should have that as backup protection.

When you go in ask them whether they are on prescription drugs or illegal narcotics.

I don't know why they will only accept a bankers draft on the day as this less safe for them than accepting a debit card payment. Most peculiar.