Paying for a car

Mk98

Hi, 
Sorry if this isn't in the right place.
My dad is looking at buying a used car from a franchise dealer. When speaking to them on the phone they want him to transfer the money 24 hours before we go via bank transfer. We haven't seen the car yet and I don't really feel happy doing that. They say they can only take £1,000 on debit/credit.  I was just wondering if anyone can help with what we should say to them as we would rather not pay via bank transfer and definitely not before we have seen the car.

Thanks 
Katie

68ComebackSpecial

Just walk away. Paying a small, refundable deposit via debit/ credit card to hold the vehicle is pretty normal but paying 100% up front before even seeing it is not - and especially via transfer. Your father could have one hell of a problem getting his money back if he finds the car isn't suitable once he views it.

user1977

Mk98 said:

They say they can only take £1,000 on debit/credit.

Sounds like nonsense. At best, this is them just trying to avoid the charges for payment by card (and even then, a Faster Payment could be processed while you're at the dealer). The only cars I've ever bought have been by paying the full amount on the spot by debit card.

There is a Motoring board which might have more insight:

https://forums.moneysavingexpert.com/categories/motoring

k3lvc

Mk98 said:

Hi, 
Sorry if this isn't in the right place.
My dad is looking at buying a used car from a franchise dealer. When speaking to them on the phone they want him to transfer the money 24 hours before we go via bank transfer. We haven't seen the car yet and I don't really feel happy doing that. They say they can only take £1,000 on debit/credit.  I was just wondering if anyone can help with what we should say to them as we would rather not pay via bank transfer and definitely not before we have seen the car.

Thanks 
Katie

Bit more info needed - is this a situation where 'before we go' means he's expecting to see it and drive away in it in a single visit ? What's he going to do if some work needs doing - is he able to make a 2nd visit/arrange delivery ?

Surely the sensible option is go and view/test and then pay/arrange collection ?

Sandtree

Only taking up to £1k by credit card is the norm as they pay a percentage fee on the transaction so don't want to do that. Most will take more by debit card because its a fixed fee irrespective of amount paid but maybe they are getting frustrated with chargebacks etc.

Paying in advance would only be if he wants the ability to drive it away same day. Otherwise go see it, if you like it then pay and come back the next day to collect.

macman

Just a nominal amount on a credit card will provide you with full S75 protection for the entire value of the purchase. It's quite normal for dealers to refuse CC or DD payment for the full value, due to the high card fees and because they can't charge you extra for this.
The real question here is not bank transfer, but why your father is even contemplating buying a car that he has neither viewed nor test driven? Even if the dealer is 100% legit, which appears to be the case, this is foolish in the extreme.

Sandtree

macman said:
It's quite normal for dealers to refuse CC or DD payment for the full value, due to the high card fees and because they can't charge you extra for this.

Fee for a £10 or £10,000 Debit Card is identical -  I assume DD was meant to be DC, clearly no one would pay for a car with Direct Debit as its for reoccurring payments (many will repay the finance company by DD though)

macman

Yes, I meant DC.

bris

Why cant you go see the car? Please don't say it's like 300 miles away, that just follows on with the, car faulty but the dealer is 300 miles away thread that will be created next.

Pop in see the car, a bank transfer is is more or less instant these days so driving it away after testing and inspecting it is how you should do it.

You say it's a franchised dealer so that should provide a bit security as far as warranty goes.