Buying a car

CashMoney

Hi, I’m looking to purchase a vehicle from a dealer. I initially paid a small deposit via card over the phone to secure the vehicle a few days ago with a date to collect in 10 days time. I received a phone call from the dealer yesterday stating that I had to pay the full amount by bank transfer the day before collecting at the very latest. I was initially taken aback by this as every other time I have purchased from a dealer I paid the full amount via card at the dealership on day of collection. The dealers excuse for not accepting my previous method was that they only accept a maximum of £1500 via card. I feel reluctant to send the full amount before I have even seen the vehicle and not test drive it. Does anyone know if this is legit and safe? Also does it still class as a “long distance sale” and will I have the same rights?

Many thanks

Ebe_Scrooge

Sounds reasonable enough.  Presumably you'll inspect and test drive the car before you decide if you want to go ahead with the purchase?  At which point you should be safe to then make the bank transfer.

It's very common for dealers to refuse the full amount on credit card, due to the high fees they have to pay.  Anecdotally there are some who will accept credit card for the full amount, but these are definitely in the minority.  As long as you've paid a portion on credit card (it actually only needs to be 1p) then you're covered by S75 if the dealer goes bust or whatever, assuming the car is not more than £30,000.

So, pay a holding deposit by credit card, test drive the car when it's ready, if you're happy to go ahead with the purchase then pay the remainder via bank transfer.  There shouldn't be any issues with this.

CashMoney

No he wants me to make the bank transfer in full before coming to see and collect the car.

CashMoney

So what if I don’t like the car or the way it drives, can I ask for a refund? Am I covered under a “long distance sale” because I paid for the car in full before seeing or driving it?

Ebe_Scrooge

Personally I'd never commit to buying a car that I'd never seen or driven.  Can you not arrange to test drive the car, make your mind up, then agree to buy it a couple of days later?

CashMoney said:

So what if I don’t like the car or the way it drives, can I ask for a refund?

What do the dealer's terms & conditions of sale say about this scenario?

Notepad_Phil

How did you find this car as what the dealer is asking you to do would be the perfect means of operation for a scam.

DebtHurricane

Definitely don’t pay for a vehicle you’ve not physically seen in real life. My work sees a lot of this happening and people scammed out of thousands.  

CashMoney

It’s a legitimate Mazda main dealer, comes with 3 yr warranty. 

Ebe_Scrooge

Do you "know" this dealer - is it an established local business?  Paying for a car you've never seen does sound dodgy.

Just my personal experience from the last few cars I've bought over the years, from a genuine dealership.....

1.  Mooch around the forecourt, find a car you like.

2.  Test drive it.

3.  Decide you want to buy it, negotiate a price, agree on what work will be done before you collect (remedy any defects you noticed, new MOT, full service, full tank of fuel supplied, whatever the case may be).

4.  Pay a deposit

5.  Agree to collect the car "a week on Saturday" kind of thing, so they can do whatever repairs etc. are needed.

6.  Come Friday, pay the balance by bank transfer.

7.  Saturday, pick up the car and drive away happy.

Must admit, many years ago I always used to pay the balance on the day via debit card, which always worked OK.  In recent years this particular dealer asks for bank transfer the day before collection (all the above steps having taken place).  But I have no issue with that as they're a big local company, been around for donkey's years - and the fact that I keep going back to them must say something :-) 

But paying in full for a car you've never seen ... that starts to ring alarm bells.

OldMoneySaver

CashMoney said:

I initially paid a small deposit via card over the phone to secure the vehicle a few days ago

As pointed out in an earlier reply, if this was specifically a credit card then you're already protected against the dealer breaching the contract, assuming the car is priced below £30K, so you should still receive a full refund from the credit card company if it was a scam.

The issue of whether or not you have any rights to pull out of the contract and get your money back is a separate one, but on the face of it I believe you should have unilateral cancellation rights for up to 14 days after taking ownership, under The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

CashMoney

The only thing I can think of is because I am collecting the car on weekend, there are no or less admin staff in to do the paperwork, therefore by paying earlier they can do all the paperwork a few days before collection?