Full payment before collection

[Ant-toe-knee]

Just some advice

I've never done this before and have bought many used cars from dealers.

Anyway I put down a £1k deposit last Friday and the car is due to be ready for Wednesday. The dealer wants full payment before collection which I think is not consumer friendly. I will be paying in full when collecting.

 

[500E]

Never done it. Always paid balance once I'm happy with the car. Otherwise walk away.

 

[TheFoX]

A £1000 deposit is more than enough for the dealer to prepare the car ready for collection. Don't pay another penny until you are ready to take delivery.

If he insists, just laugh at him. If he doesn't come up with the goods on the day of delivery, you are within your rights to ask for your deposit back.

Did you pay your deposit cash, debit card or credit card? If it is a credit card, you have the backing of the Consumer Credit Act, or whatever it is currently called.

No one should want payment in advance for goods or services, unless you have instructed someone to make or supply something that is a one off.

 

[Ted]

That's rubbish.
I've just bought a brand new car and left £500 with balance on collection.
Previously paid as little as £50 to hold a car for a week.

 

[219]

In the case of a used car , you want to be able to inspect it at the point of collection ; if you have already paid everything upfront and something isn't right then you are in a 'take it or leave it' situation and you have no leverage over the dealer .

At least if you still have a substantial balance to pay , and you spot a defect , you can withhold payment , insisting that it is fixed before you take delivery .

The insistence for payment beforehand makes me suspicious .

 

[Deleted member 6183]

I have never paid any kind of deposit before collection, I'm not sure that I ever would. Why would you trust a used car dealer with your money?

I'd advise against laughing at people who you are trying to do business with.

 

[leef44]

Sometimes a dealer is unable to prepare a car for delivery on the specified agreed date for whatever reason. If they already have all the money then there is less incentive for them to meet the commitment of that delivery date.

So you end up being kind, paying all up front and then get less commitment/service from them. This is similar to builders doing work on your house. It's just business at the end of the day.

So NEVER pay up until delivery and inspection is completed.

 

[AMGeed]

It wouldn't surprise me if the dealer wants his cash in advance for Christmas spending. He's probably had a bad month . Like everyone else has intimated, pay him not a penny more until collection. I've never heard of this type of request before.

 

[gIzzE]

Post a link to the dealer?

It sounds very strange.

My guess it is a small indi dealer who is having a few cash flow problems, don't let his problems become yours.

 

[brucemillar]

Payment on collection is the correct way to go. Saves you and the dealer lots of hassle if things are not as planned.

This is getting more common now. Why? Everybody thinks that they are a Wheeler Dealer. So they pay the deposit, turn up on the day, then start to try and re-negotiate the deal based on an imaginary mark or a ghost mechanical issue, free service, full valet, no washer fluid, you name it. End result: Is what you now see. Dealers don't trust the public who in turn don't trust the dealer.

 

[jonnyboy]

Post a link to the dealer?

It sounds very strange.

My guess it is a small indi dealer who is having a few cash flow problems, don't let his problems become yours.

This is the succinct answer. Remember the shambles of a large upfront payment that our dear E55BOF went through.

 

[Rory]

The dealer wants full payment before collection which I think is not consumer friendly.

Could just be a mis-understanding - what they don't want is for customers to turn up with a cheque or do a bank transfer that could take hours.

I had a load of hassle paying for my MB with a debit card - real grilling from the authorisation people asking me the phone number of the place I first worked at (over 20 years before) etc. I think it was only that I had my passport and the salesman told the person he didn't doubt my identity that it went through. Oh, and I was 80 miles from home and leasing company had already met me there and taken my company car away!

OTOH my 21yr old daughter paid for her new car with debit card and it went straight through!

 

[Driver15]

Payment on collection is the correct way to go. Saves you and the dealer lots of hassle if things are not as planned.

This is getting more common now. Why? Everybody thinks that they are a Wheeler Dealer. So they pay the deposit, turn up on the day, then start to try and re-negotiate the deal based on an imaginary mark or a ghost mechanical issue, free service, full valet, no washer fluid, you name it. End result: Is what you now see. Dealers don't trust the public who in turn don't trust the dealer.

This ^^

A friend of mine is a used dealer (cars upto around £6k - £7k)

At one point he would take deposits of say £50 / £100, but now always request's a min of 25% to cover him as people cant tend to afford to lose that.

rare, but it happens is when someone pays £50 deposit, garage gets car fully serviced and fresh MOT regardless, then the buyer would start trying to re-negotiate trying to knock £300 plus money off as they have the garage over a barrel then where the customer was happy to walk away for the sake of £50, (dont forget they were happy with the car the week before!)

Car may sit then for another 4 weeks, hence losing MOT or having the garage to pay another £40.

The 25% deposits gets rid of the time wasters and prevents buyers trying to pull a fast one.

100% payment up front is not normal and not something i would be happy about. (unless the car is to be couriered to a customers address due to distance) but then the paperwork is clear to protect both parties with transport insurance and pre collection photos etc.

Reading between the lines, wonder if he has a cash flow problem and requires you cash to prep the car before sale ? if so.. thats not your problem regarding his cash flow but could be your problem if the car has issues ans you require the garages support post sale.

 

[Ant-toe-knee]

Just an update

The dealer is a very large one across the south. I've paid 1k deposit on debit card and the remaining £5900 on debit card or cash if the want it. I'm in discussion right now as I type this . All they come back with is its "company policy"BS!

 

[AMGeed]

Just an update

The dealer is a very large one across the south. I've paid 1k deposit on debit card and the remaining £5900 on debit card or cash if the want it. I'm in discussion right now as I type this . All they come back with is its "company policy"BS!

Give them the ultimatum, accept full payment on collection or refund your deposit. Their company policy is of no interest to you.

 

[Mc1]

My father has just bought a new Jag xf and he paid 1k depsoit and they want him to come in on the 30 Dec to pay balance and he picks it up on the 2nd Jan!!!

 

[mattc]

Will you walk away from the deal if necessary? Stand ground and see who blinks first...in the meantime look for another car.

 

[219]

My father has just bought a new Jag xf and he paid 1k depsoit and they want him to come in on the 30 Dec to pay balance and he picks it up on the 2nd Jan!!!

He should retort that he's happy to come in and pay then , but expects to be getting the car at that point - if need be at midnight if he's bothered about year of registration .

 

[Nathant23]

My father has just bought a new Jag xf and he paid 1k depsoit and they want him to come in on the 30 Dec to pay balance and he picks it up on the 2nd Jan!!!

Just make sure if hes paying in December but not collecting till 2nd January that his car is registered as a "65/2016" vehicle. Not "65/2015". Don't be surprised if the dealer is doing this to hit month target..

 

[E55BOF]

My father has just bought a new Jag xf and he paid 1k depsoit and they want him to come in on the 30 Dec to pay balance and he picks it up on the 2nd Jan!!!

Now that I wouldn't have too much of a problem with, as it's a brand-new car with appropriate warranty, but paying in full in advance for a used car? Don't; just don't; just don't under any circumstances - that helpful, friendly dealer may not be so eager to please once the cash has been handed over, and if anything is/goes wrong, you want him to hand money the other way...