Very Short term loan

jonesMUFCforever

regularsaver1 wrote:

yes but special clearance confirms that is is payed - relies on post though

So in this instance it is out of the question as OP gets one cheque at 9.30 am and wants to issue cheque for his own car later on that day.

Mikeyorks

mazdamansport wrote:

Is there a reasonably inexpensive way to do it or am I asking too much

Special presentation of the cheque will cost you (circa £12) .. and gives you absolutely no benefit in this case. It is a mechanism primarily for ensuring the funds are there to meet the cheque, when it goes through the formal Clearing Cycle. In your case - you must be reasonably certain of its validity ... otherwise you wouldn't be accepting it. But it doesn't advance the funds one iota.

If I'm reading it right and the cheque value is the major funds bridge? The way forward largely depends on how you have to pay for the new car. If they won't accept a personal cheque (in which case the time to clear the cheque you receive .. you can ensure is at least equal to the time to clear the cheque you write? IYSWIM) - you need cleared funds?

1. Arrange to pay the buyer the sum (£20 - £30) to CHAPS the funds into your Bank (instant clearance provided done before the CHAPS gate closes 1430 - 1530hrs). Then pay by Debit Card?

2. Arrange a very short term overdraft - if thats cheaper than paying the 2.3% CC charge?

Hope the new one's worth it?? Honda or Mazda?

Nytehawk

Gosh so many options but lets try and clarify "for my benefit" the way forward.
You mention arrange to pay the buyer £20-£30 CHAPS which sounds ok to me but I understood that the dealers norm is to view car give cheque Cheerio, I haven't tried the CHAPS option which I will try tomorrow.
Because I haven't had to use an overdraft (there is the option of £600 just in case) I just looked at my bank (A&L) on line and the max overdraft offered (If accepted) is £5000 (£5250 short) and to be honest because I haven't used an overdraft I don't know what the interest rate is

Mazda to Honda....... Both great cars.......... Just fancy trying the other. I am tempted to write about this particular experience on the transport pages because I have done my best to buy/sell this car the MSE way and it hasn't been without glitches (this one for example) but has saved me about £850 net and got a good deal for my own car......... Unless theres someone out there wanting a nearly new Mazda 3

Mikeyorks

Right .... you've saved £850. But the methodology means you're selling / buying with different dealers? So you've a liquidity gap which you need to close. And the trick is to do it with minimum damage to your 'profit'?

The CC is the normal 'no brainer' As you won't be charged interest, because of the few days gap, but in this case the seller is levying a 2.3% Surcharge for CC use and which is going to cost you £235.75. So that's the baseline expensive option.

Potentially cheaper, but more complex one .... is to get liquid funds, from your sale, on the day, so you're using your own money? You're right ... garages don't normally do it that way. But nor do they normally buy .. without a commensurate purchase. And if you were simply buying from them .. they wouldn't normally let you walk away with the car in return for just a personal cheque? But they're expecting you to do just that! So try and turn it round a bit? As you can up your security and resolve your liquidity gap - by asking for liquid funds. They won't do it for free .. but it's worth asking for CHAPS and that you'll pay the fee (£20 - £30). If reticent (because they'll lose their money 2 working days quicker than a cheque) .. offer another £10. Sounds measly .. but it's actually a factor of 4 greater than they will lose in interest (£10250 @ net 4% for 2 days = £2.25).

Then arrange to pay the seller by Debit Card - having checked with your Bank (doubt you'll see it online, but they will be able to) the CHAPS funds are there. Should be 3 / 4 hours max if they do the CHAPS around 0930hrs. You'll need to field some security questions with the Debit Card .. and they won't be the normal ones. The sellers 'merchant acquirer' (people who handle the sellers transactions - authorise them and obtain the funds into their account)will ask the questions .. but they'll be simply in contact with your Bank and passing / returning the questions / responses from / to them. Some of the questions are likely to relate to recent transactions.

If that doesn't compute .. the overdraft is my last option. You will need to go into Branch to arrange it .. and do it on the basis it's just a bridge for the couple of days a cheque that you will lodge the day you need to o/d needs to clear? Expect the interest rate to be circa 15%. Sounds expensive - but it only works out at £8.50. However, doubt you'll get it purely at interest rate as it's hardly worth their while and they'll probably insist on doing it on a fee basis? Will be lower than the £235 CC cost .... and may be cheaper than the £30 - £40 all up CHAPS cost????????

Best of luck .... and with keeping most of your £850 profit.

I've had a Honda CRV for just over a year. Been excellent .. with just an odd design fault on an air con switch to spoil other than 100% fault free. But sod's law that it happened just as we were going away for a week in hot weather .... as heat and me don't get on.

Trust one of the methods works ..... don't forget to change your posting name;)

DesG

Any chance of garage A making the cheque out to Garage B?

Cheers, Des.

Nytehawk

Not a chance, Garage only have a contract with me and will not entertain another dealership unless they belong to the same group however, after reading, digesting the last post from Mike I have managed to get a CHAPS payment payable to Garage B by Garage A but only with a detailed letter of authority from me in writing to confirm that I am giving my authority for the transaction to take place.................. But worth every penny cos I can now drop off one car down South and collect the other from Southend all in the samne day,. I hope Mazzs personal SAT NAV is accurate HA!