BACS Transfer Delays

Axel

Hi,

Not sure if the is the best section to post, but here goes.

I have arranged a loan for a new car through Northern Rock. The papers are signed and were posted first class on Friday, however NR tells me that due to the bank holiday and FOUR WORKING DAYS for a BACS transfer days to clear the money wil not be in my account until next Friday. If the process is started on Tuesday and it does take four working days then I make it Monday 5 September before it is cleared. I had the option to pay £45 for a next day transfer which I declined.

I want to collect my car on Thursday 1 September.

1. If I also make a BACS transfer to the dealer on Thursday will it also take four days to clear, in which case there is no problem?

2. If I pay by debit card on Thursday when will it hit my account?

3. Should I arrange a short term overdraft with my bank, Halifax, which would cost less than £45 for 1 day even for the £15K?

4. Any other suggestions or ways around this?

Any advice would be appreciated.

Axel

jonesMUFCforever

Axel wrote:

Hi,

Not sure if the is the best section to post, but here goes.

I have arranged a loan for a new car through Northern Rock. The papers are signed and were posted first class on Friday, however NR tells me that due to the bank holiday and FOUR WORKING DAYS for a BACS transfer days to clear the money wil not be in my account until next Friday. If the process is started on Tuesday and it does take four working days then I make it Monday 5 September before it is cleared. I had the option to pay £45 for a next day transfer which I declined.

I want to collect my car on Thursday 1 September.

1. If I also make a BACS transfer to the dealer on Thursday will it also take four days to clear, in which case there is no problem?

2. If I pay by debit card on Thursday when will it hit my account?

3. Should I arrange a short term overdraft with my bank, Halifax, which would cost less than £45 for 1 day even for the £15K?

4. Any other suggestions or ways around this?

Any advice would be appreciated.

Axel

If you make a BACS payment it is no better than giving the dealer one of your own personal cheques as the money will not appear in their account until the following Tuesday at the earliest.This is a non starter anyway as your account will be debited straight away)
The easiset option would be for you to ask the dealer whether he will accept your personal cheque if so there are no problems provided the money actually turns up from NR.
If you try to pay by debit card you will probably be declined as you will not have cleared funds on your account.
An overdraft may be the solution but you will have to pay interest even for one day if it is used.
If all else fails could you not just telephone the dealer tell him something important has cropped up and collect the car on friday?
Eric

Stonk

The car will wait. The dealer isn't going to sell it to someone else if you can't pick it up for an extra couple of days.

Unless the reason you want it on 1 September is because of the new registration, in which case, well, my thoughts are best left unsaid ...

MarkyMarkD

This is all a lot of faff because:

(a) you arranged the loan too late; and
(b) you don't want to pay the £45 for a same day transfer.

I know £45 is a lot for a same-day transfer, but NR charge it because some people are daft enough to pay it, and the others will put up with waiting the four working days.

I doubt your bank will be too keen to give you a 4 day, £15k overdraft - but you are quite right that would be a cheaper option.

If I had the choice, (having failed to organise the loan earlier) I'd get the funds TT'd by NR direct to the dealer, meaning that the original deadline would be met. End of problem - £45 is a drop in the ocean of your £15k tbh.

Axel

MarkyMarkD wrote:

This is all a lot of faff because:

(a) you arranged the loan too late; and
(b) you don't want to pay the £45 for a same day transfer.

I know £45 is a lot for a same-day transfer, but NR charge it because some people are daft enough to pay it, and the others will put up with waiting the four working days.

I doubt your bank will be too keen to give you a 4 day, £15k overdraft - but you are quite right that would be a cheaper option.

If I had the choice, (having failed to organise the loan earlier) I'd get the funds TT'd by NR direct to the dealer, meaning that the original deadline would be met. End of problem - £45 is a drop in the ocean of your £15k tbh.

Reply required to this knowall.

>>(a) you arranged the loan too late;<< Wrong! Loan was arranged as soon as possible relative to the sale.

>>(b) you don't want to pay the £45 for a same day transfer.<< Wrong! There was no need to.

>>I doubt your bank will be too keen to give you a 4 day, £15k overdraft<< Wrong! Overdraft is now arranged with one phone call.

>>£45 is a drop in the ocean of your £15k<< Wrong! £45 has exactly the same value regardless of what it is related to.

Alex

MarkyMarkD

(a) It was arranged too late to get the money to the dealer in time, via BACS. Hence your original post. D'oh!

(b) There was no need to do so, if you could get a £15k 4-day overdraft - most people can't.

"I doubt" ... See above.

"£45" - £45 is £45, OK, but you're buying a brand new car for £15k. And you're complaining about a charge that does the job of getting the money there on time, which is the only practical solution for most people. Clearly the charge is part of NR's profitability calculation given their low loan rates.

I'd rather know all than not want to hear people's responses to your own question.

jimclark1967

You're v. brave taking on years of interest payments, hope it's a nice car.

Enjoy! (since it's now 1st September) :beer:

JC

Reaper

Bit late now, but there was an alternative option. Car dealers like building society cheques because, unlike personal cheques, they can not be cancelled at a whim.

So you just needed to ask the building society to write out the loan as a cheque made payable to the dealer and you could have given him that.