Dealer insists on Bank Transfer

motorguy

Car_54 wrote: »

Why would the customer agree to transfer the cash days in advance? He then has no protection if the dealer goes bust/burns down/whetever before pickup.

Well i cant argue with that level of paranoia.

david_a

Credit card transactions are 1%+Vat

Debit cards 0.35%+Vat

Banks charge 0.8% to deposit cash

Bank transfers 30 pence.

£12000 on debit card will cost around £50 do a few of those a week and over the course of a year you will be paying £5/6000 a year.

[Deleted User]

motorguy wrote: »

Is it?

When its £10K or £20K transactions i'd say many dealers would be risk averse.

Typically from purchase to pickup could be a matter of some days. Theres plenty of time for the customer to get the transfer done.

It sounds like the dealer has been caught out at some point - perhaps had a transaction not go through / problems with it so they've opted not to.

I'd rather let the 1 in 100 customers flounce out because they refuse to do it than take any sort of a chance with a £10K or £20K transaction.

Yes there would be a few days between purchase and pick up of a car, but I still wouldn't pay the balance until I was there to drive the car away. Anything can happen in those days from the dealer going bust or doing a moonlight flit with my money. Doesn't matter how long established or reputable they are, plenty honest businesses go under or disappear when the SHTF.

Car_54

david_a wrote: »

Credit card transactions are 1%+Vat

Debit cards 0.35%+Vat

Banks charge 0.8% to deposit cash

First, there are no "standard" charges. They vary widely between banks and card processors, and even by type of business. Larger businesses typically pay less. The card processors are in a competitive business.

Second, the figures seem wildly wrong. Credit cards are typically 2 to 3%. AFAIK debit cards are usually a fixed fee, a few pence regardless of the size of transaction.

neilmcl

Deleted_User wrote: »

Yes there would be a few days between purchase and pick up of a car, but I still wouldn't pay the balance until I was there to drive the car away. Anything can happen in those days from the dealer going bust or doing a moonlight flit with my money. Doesn't matter how long established or reputable they are, plenty honest businesses go under or disappear when the SHTF.

There's nothing to prevent you doing the transfer on the day or using a forward-dated payment for the pickup date.

AndrewAllison

Thanks so much for all the replies. In the end i sent a test 100 quid and then transferred the full balance as I set off to pick the car up..

Everything went ok and fingers crossed the car is spot on. The drive home had me with the biggest grin I've had in ages.

I'm glad a lot of you had similar reactions to myself.

david_a

Car_54 wrote: »

First, there are no "standard" charges. They vary widely between banks and card processors, and even by type of business. Larger businesses typically pay less. The card processors are in a competitive business.

Second, the figures seem wildly wrong. Credit cards are typically 2 to 3%. AFAIK debit cards are usually a fixed fee, a few pence regardless of the size of transaction.

You are a little out of date my friend.

2015 EEC directive 2015/751 capped bank interchange fees.

Credit card transaction fees were also capped

Banks then levied a % on debit cards scrapping the previous fee per transaction.

Up until 13/01/2018 retailers were allowed to pass on these costs to consumers. As of that date it is illegal to do so. Which is way not only are a lot of car dealers but also HMRC no longer accepting credit cards. It is still okay to pass on the fee to businesss though.

For money laundering purposes cash payments of over €10000 must be reported to HMRC

motorguy

david_a wrote: »

You are a little out of date my friend.

2015 EEC directive 2015/751 capped bank interchange fees.

Credit card transaction fees were also capped

Banks then levied a % on debit cards scrapping the previous fee per transaction.

Up until 13/01/2018 retailers were allowed to pass on these costs to consumers. As of that date it is illegal to do so. Which is way not only are a lot of car dealers but also HMRC no longer accepting credit cards. It is still okay to pass on the fee to businesss though.

For money laundering purposes cash payments of over €10000 must be reported to HMRC

Well summarised. :beer:

david_a

motorguy wrote:

Well summarised. :beer:[/

Thank you.

onomatopoeia99

Tarambor wrote: »

I can see no problem with this, he gets to save a bit of money on transaction fees, you're in no different position than if you pay by debit card..

It costs about 10-20 pence in fees for a debit card transaction irrespective of the amount. It's only credit cards that are a percentage. On a £12k purchase, the dealer can absorb a 20p fee.