Paying for a new car

[ilovemyheckler]

Following on from my last post how do you pay for a new car and make sure that you are protected?

For instance if I send £35,000 ish by bank transfer I guess that there will be a period of time between me sending the money and the car getting registered in my name. I assume that no garage will register a car in the buyers name until they get full payment so if the garage go into administration during this time what happens to my money?

The reason I ask is that I was talking to a dealer in Edinburgh (Leven Car Company) recently and it now appears that they have gone into administration

[Hamster]

I tend to pay large deposits using a credit card which gives you certain protections but must admit I’d think twice about a bank transfer for such large figures, even if the company’s affairs seemed solid.  

[ilovemyheckler]

I could do the same but the garage will not transfer ownership of the vehicle until they have received the full amount

[sam triple]

when I bought mine I did a bank transfer as cash is now frowned upon ,but mine was a 1/3 of the price of yours ,

[ilovemyheckler]

Its still a risk however much the car is

[sam triple]

1 minute ago, ilovemyheckler said:

Its still a risk however much the car is

if its reputable dealer and receipts are given and have a paper trail of payments cant really see how else to do it

[bruno22rf]

Credit card (sec75) covers you up to £30k so you would be wise to pay at least a deposit (min £100 I think) with your card.

[sam triple]

12 minutes ago, bruno22rf said:

Credit card (sec75) covers you up to £30k so you would be wise to pay at least a deposit (min £100 I think) with your card.

you live and learn

[Flyboy1950]

My sister in law tried to use a credit card to purchase a replacement car at the beginning of January (because she wanted the Credit card protection) and the garage informed her that they weren`t allowed to take credit cards (by law) any more, but could take a Debit card.

Interesting to know the facts on this.

FB

[Vince Green]

There are some very convincing scams doing the rounds at the moment. I would hesitate to transfer money to somebody I had spoken to on the phone.car 

Also, registering the car in your name is not proof of ownership

Edited January 27, 2020 by Vince Green

[walshie]

26 minutes ago, bruno22rf said:

Credit card (sec75) covers you up to £30k so you would be wise to pay at least a deposit (min £100 I think) with your card.

^^ This. Even if the company won't take credit cards for the whole amount, insist on paying a small deposit with it. Once you've paid £100 by credit card. you're covered the same as if you'd paid in full with it.  

[Hamster]

Just now, Flyboy1950 said:

My sister in law tried to use a credit card to purchase a replacement car at the beginning of January (because she wanted the Credit card protection) and the garage informed her that they weren`t allowed to take credit cards (by law) any more, but could take a Debit card.

Interesting to know the facts on this.

FB

News to me, I just can’t see how they could impose such a law for car purchases, I’ve known dealers asking for the credit card companies percentage to be added to the balance (particularly for American Express who charge 3%) hence say a £10k balance attracting an additional £300 😐 which is quite a hit but must admit I’m not certain as to legality. 

[WestonSalop]

There is no such law. 

[Vince Green]

They also say they can't take cash because of money laundering legislation.

[eddoakley]

Take out the finance. Most garages will offer the option and often give you a better deal than paying cash/transfer etc. Before the first payment is due you should have the car and paperwork and simply pay off the finance.

Never taken vehicle finance but was advised a while ago that its usually the best way to do it.

 

Edd

[London Best]

14 minutes ago, eddoakley said:

Take out the finance. Most garages will offer the option and often give you a better deal than paying cash/transfer etc. Before the first payment is due you should have the car and paperwork and simply pay off the finance.

Never taken vehicle finance but was advised a while ago that its usually the best way to do it.

 

Edd

This wot Edd sez.

I have never bought a car on finance, but:

I’ve had to do this with three vehicles now. There is usually a bit of discount for taking the finance option because of the dealers commission from the finance company. Pay it off before the first payment is due and you and the dealer win at the finance company’s expense.

[Hamster]

1 hour ago, London Best said:

This wot Edd sez.

I have never bought a car on finance, but:

I’ve had to do this with three vehicles now. There is usually a bit of discount for taking the finance option because of the dealers commission from the finance company. Pay it off before the first payment is due and you and the dealer win at the finance company’s expense.

Not necessarily so for the dealer, finance companies have claw back arrangements which entitles them to get any commission paid reversed if the client pays up before the first month is over, I have known this happen on deals that are paid up within 6 month. I personally think it’s a fair thing. 

Edited January 27, 2020 by Hamster

[bruno22rf]

Much like an early settlement fee then?

[London Best]

21 minutes ago, Hamster said:

Not necessarily so for the dealer, finance companies have claw back arrangements which entitles them to get any commission paid reversed if the client pays up before the first month is over, I have known this happen on deals that are paid up within 6 month. I personally think it’s a fair thing. 

Personally, I didn’t really care. I only signed up for my benefit. I have no time for car dealers or finance companies. Being a cash type of person, I think there should always be an incentive for folding money. It’s the way I was brought up.

[Davyo]

Pay a deposit and then a bank transfer on collection.Inform your bank that you will be doing a large transfer on day of collection and there shouldn't be any issues.

Edited January 27, 2020 by Davyo

[Pistol p]

Don’t forget, if you’re sending a large amount send £1 first. If that clears and is going where you want, then you can safely send the rest with confidence.

[Rupert]

You will struggle to send that much in on day by faster payment, split it up at your end. 10 to wife 10 kids or granny etc then you can all do it with in 5 mins and minimise delay and exposure.

 

[rbrowning2]

20 hours ago, Hamster said:

News to me, I just can’t see how they could impose such a law for car purchases, I’ve known dealers asking for the credit card companies percentage to be added to the balance (particularly for American Express who charge 3%) hence say a £10k balance attracting an additional £300 😐 which is quite a hit but must admit I’m not certain as to legality. 

Card charges were ban by the EU some time back (2018) so the garage is unable to pass the cost of using the card on to the customer and is not wanting to take a hit on the cost.

see

https://www.bbc.co.uk/news/business-42639408

 

Edited January 28, 2020 by rbrowning2

[robbiep]

On 27/01/2020 at 13:59, eddoakley said:

Take out the finance. Most garages will offer the option and often give you a better deal than paying cash/transfer etc. Before the first payment is due you should have the car and paperwork and simply pay off the finance.

Never taken vehicle finance but was advised a while ago that its usually the best way to do it.

 

Edd

A point.

You have 14 days in which to cancel the finance agreement. Not 'until the first payment is due'.

Leave it too long, and you're stuck in the agreement. Be very aware !

[Davyo]

I'd never pay cash again unless something 2nd hand say 4 or 5k.

Once bought a Jag Stype new (cash as i took a lumpa from one of my pensions) three years later the £34k Jag was worth 9k trade in.No better way to waste money.

Edited February 3, 2020 by Davyo