Buying a Vehicle Up Front - Payment Methods

[Goldeneye]

Application has just been approved for the Flexplus account lol! (Didn't hang about!) Mind you, a few of my mates bank with Nationwide too and they've all said good things in the past. Thanks for the advice guys

 

[DSM10000]

We have had Nationwide accounts for over 30 years in my case and around 20 for madam.

Always helpful, always someone you can talk to and the extra benefits of the Flex plus account are well worth the benefits.

I also have a Starling account.

Easiest bank account I have ever opened, it took under an hour from starting the process to receiving my account details and the card arrived 3 days later.

 

[markjay]

Also... I suggest you make sure you pay at least £100 (or whatever is the minimum amount these days) with a credit card. This way the whole transaction will be guaranteed by the credit card issuer.

 

[Deleted member 159894]

We have had Nationwide accounts for over 30 years in my case and around 20 for madam.

Always helpful, always someone you can talk to and the extra benefits of the Flex plus account are well worth the benefits.

I also have a Starling account.

Easiest bank account I have ever opened, it took under an hour from starting the process to receiving my account details and the card arrived 3 days later.

I also have a Starling account but am yet to actually use it other than transferring £10 in to test the process.

I would excercise some caution around it though because they are not a bank in the traditional sense and will have some quirky processes in place around governance and oversight. You could find yourself in a pickle if their process IDs you as a risk and, I believe, frozen accounts pending lengthy investigation could be an issue.

 

[Benz17]

Also... I suggest you make sure you pay at least £100 (or whatever is the minimum amount these days) with a credit card. This way the whole transaction will be guaranteed by the credit card issuer.

He is possibly buying from a private seller.

 

[DSM10000]

I also have a Starling account but am yet to actually use it other than transferring £10 in to test the process.

I would excercise some caution around it though because they are not a bank in the traditional sense and will have some quirky processes in place around governance and oversight. You could find yourself in a pickle if their process IDs you as a risk and, I believe, frozen accounts pending lengthy investigation could be an issue.

They are fully regulated under the FCA rules like any other UK based bank.

Why do you think there are these potential issues?

 

[Deleted member 159894]

They are fully regulated under the FCA rules like any other UK based bank.

Why do you think there are these potential issues?

Because they are so new and their processes are not mature and/or embedded and tested. They are also running on a relatively small staff count so anything out of the ordinary might have to join the queue behind the BAU stuff or wait for an SME to be available.

Small banks and mortgage lenders often have peculiarities, for example some small building societies cannot offer fixed rate mortgages until their liquidity reaches a certain point, this may never happen for some.

 

[DSM10000]

Because they are so new and their processes are not mature and/or embedded and tested. They are also running on a relatively small staff count so anything out of the ordinary might have to join the queue behind the BAU stuff or wait for an SME to be available.

Small banks and mortgage lenders often have peculiarities, for example some small building societies cannot offer fixed rate mortgages until their liquidity reaches a certain point, this may never happen for some.

I can appreciate your well made points except where you say processes may not be tested.. I thought this was a fundamental part of receiving the FCA licence?

Although long established banks have been known to fail in such areas.

We will never use Starling for mortgages or loans just a convenient second account we will probably use when on holidays abroad.

 

[DSM10000]

Also... I suggest you make sure you pay at least £100 (or whatever is the minimum amount these days) with a credit card. This way the whole transaction will be guaranteed by the credit card issuer.

I think it is £500

 

[Deleted member 159894]

I can appreciate your well made points except where you say processes may not be tested.. I thought this was a fundamental part of receiving the FCA licence?

Although long established banks have been known to fail in such areas.

We will never use Starling for mortgages or loans just a convenient second account we will probably use when on holidays abroad.

Gaining the FCA, well actually PRA, approval is a basic requirement, building a slick operation comes with time and experience but as said they will be fine as a second account as long as you have back up.

I think it is £500

£100

 

[markjay]

He is possibly buying from a private seller.

Isn't it a bit risky transferring full payment in advance to a private seller?

Also, don't they do Banker's Drafts any more...?

 

[Benz17]

Isn't it a bit risky transferring full payment in advance to a private seller?

Also, don't they do Banker's Drafts any more...?

They do, but you can also get dodgy bankers draft. But the buyer/seller could go to a bank together and get the bankers draft, and the seller will know that it’s the real mcoy

 

[Deleted member 159894]

Isn't it a bit risky transferring full payment in advance to a private seller?

Also, don't they do Banker's Drafts any more...?

Good question, I think not, they were often called so but were nothing more than a branch issued cheque which could be pulled if fraud suspected before clearing.

 

[DSM10000]

In terms of using a credit card for part payment protection :

"To claim under Section 75 of the Consumer Credit Act, the item or service you bought must have cost over £100 and not more than £30,000.

You don't have to have paid the full amount on your credit card – the card company is liable even if you made only part of the payment (a deposit, say) on your card.

It's the value of the goods you're buying that is key - not the amount paid on the card."

 

[jasonh]

First I'd suggest the OP changes his bank. My current account with Santander allows £25k per transaction up to a limit of £100k a day.

Another account I have made me chuckle the other day warning me that if I needed to transfer more than £100k I'd need to do it in multiple transactions.

With a decent bank, let's say Santander, you put app on your phone. Now you can buy from a private seller, you view the car, sort out the details, make a Faster Payment with the App (or two if required) the seller checks his account and you can drive the car away.

I did this on a Sunday, worked perfectly, you then jointly fill in the DVLA transfer online and that's done instantly, and finally you tax it online (although oddly this can't be done after 7pm). Finally sort your insurance by phone or online. All done there and then.

If you want to be cautious, I transferred the deposit the same way on the same day of the week. I then knew the bank to bank transfer was instant with the seller.

 

[KennyN]

Can you just pay cash , if it is a private seller ?

They will more than likely want you to go along with them to their local branch to pay the cash in , which shouldn`t be a problem providing you haven`t slipped a few "dodgy" notes in with the bundle.

Transferred a few ££ between accounts a few years back and it was done in the BoS branch with no problems , there was a charge though - £25 IIRC.

K

 

[Deleted member 159894]

In terms of using a credit card for part payment protection :

"To claim under Section 75 of the Consumer Credit Act, the item or service you bought must have cost over £100 and not more than £30,000.

You don't have to have paid the full amount on your credit card – the card company is liable even if you made only part of the payment (a deposit, say) on your card.

It's the value of the goods you're buying that is key - not the amount paid on the card."

So it’s not £500 then

 

[markjay]

Can you just pay cash , if it is a private seller ?

They will more than likely want you to go along with them to their local branch to pay the cash in , which shouldn`t be a problem providing you haven`t slipped a few "dodgy" notes in with the bundle.

Transferred a few ££ between accounts a few years back and it was done in the BoS branch with no problems , there was a charge though - £25 IIRC.

K

I guess not everyone feels conformable walking around with ££,£££ on their person...

 

[DSM10000]

So it’s not £500 then

Neither is it as simple as just £100 is it?

 

[headsforthinking]

Irrespective of what bank you use, can i advise ( and im speaking from experience ) to pay some of the amount with a credit card. Should you have any problems with the vehicle need to return it, you will have the credit card company on your side. They offer much more protection than you would have on your own.