Paying for new car?

[Bill_56]

I'm not so sure about paying by credit card.

Last time I asked, the dealer pointed out that the small percentage fee that retailers pay on CC transactions amounts to many hundreds of pounds when selling a car, and he'd require me to pay that additional amount. So I paid by debit card.

That didn't actually sound unreasonable to me. Even if the dealer were willing to bear the transaction fee, I wouldn't like the idea that the credit card companies (banks) are getting hundreds of pounds handed to them each time a new car is sold.

[SonyVaio]

Originally Posted by Bill_56

I'm not so sure about paying by credit card.

Last time I asked, the dealer pointed out that the small percentage fee that retailers pay on CC transactions amounts to many hundreds of pounds when selling a car, and he'd require me to pay that additional amount. So I paid by debit card.

That didn't actually sound unreasonable to me. Even if the dealer were willing to bear the transaction fee, I wouldn't like the idea that the credit card companies (banks) are getting hundreds of pounds handed to them each time a new car is sold.

Dude Seriously????

Every single post has said don't pay before you collect. You must be mad.

So the dealer has spun you a few lines and you've melted like a chocolate fireguard!

There is many ways to pay for a vehicle. If you were not wanting to pay by credit card then fair enough, there is a cost involved but that cost is like an insurance policy. If your car has some catastrophic failure and the dealer/Volvo says they are not going to pay etc... then your backup is the credit card company who will just do a chargeback of the money and it really is back to the dealers problem (bit more involved than that basic explanation but i'm sure you get my drift). Not sure how covered you are or are not by paying the deposit of £1000 by credit card.

By paying by debit card that is practically the same as paying by cash (there is still some cover even with a debit card). You could still have held off and then done a bank transfer via online banking to the dealer post check over or Escrow (3rd party that holds the money and only release after you give go ahead, the money is non returnable to you once go ahead given and funds only released to the seller).

So what you going to do now if the there is say a bit of damage on the car? The dealer has your money so instead of saying no don't want it the dealer will be like 'sorry mate it's your you've paid for it'. Then the fun begins, but again the dealer ain't bother because he's already been paid.

All said and done, I hope it all works out really well (and I'm sure it will). Enjoy the pleasures of purchasing a 'Brand New' car but don't let that detract from giving the car a proper going over. I'm sure your dealer is very reputable and wouldn't pull the wool and all that. Not all dealers are the same, if I can dig up the post I was reading a while back (on here) about what a dealer had done after a 'Brand New' car has been damaged prior to delivery then I'm sure you'd think twice before you paid and will definitely do that test drive. Just remember your are but ONE customer to the dealer, once your out the door he isn't bothered about you until your back to spend some more money and then you'll get a big smile and welcoming 'How are you today Mr XXX once again.

YES DEFINATELY DO TAKE THE CAR FOR A TEST DRIVE BEFORE YOU SIGN FOR IT -A GOOD TEST DRIVE!!

There is no point in you paying your money, signing the dotted line then two minutes down the road your really unhappy because of clunks from the gearbox or engine stuttering or your getting wheel wobble etc...

Fingers crossed!

[Bill_56]

Originally Posted by SonyVaio

Dude Seriously????

Every single post has said don't pay before you collect. You must be mad.

And I emphatically said the same, but sorry if my wording misled you. I simply stated that the dealer is likely to refuse payment by credit card for a car costing tens of thousands as it will cost him (the dealer) many hundreds of pounds in credit card fees.

And I do sympathise with the dealers in that respect, it's different from selling a used car for just a few thousand, where they can factor CC fees into the deal that they strike.

I certainly wouldn't advise paying in advance, regardless of whether the payment be by credit card, debit card, or freshly gown carrots.

[SonyVaio]

Sorry Bill,

Don't know if I just picked it up wrong but when I read it (to me) I thought that you had gone and paid on your debit card already?

I just know what some dealers can be like and hate the thought of anybody being seen off by them. Only got your interests at heart.

I'm sure the dealer gets people paying vast sums of money via credit card all the time. I'm sure they will offer the service even if that means them adding on a couple of % to cover the cost - effectivey you paying the CC charge. In this case the dealer wouldn't care how much you do or don't pay via CC.

Don't forget some lovely pics once you've obtained ownership though. All the best for Friday and I hope it all goes well.

[Bill_56]

Originally Posted by SonyVaio

Don't forget some lovely pics once you've obtained ownership though. All the best for Friday and I hope it all goes well.

Oh dear, I do seem to have confused things, it's not me buying the new car, I wish it were.

I was referring to my last major purchase (which was actually a year-old S60), for which the dealer emphatically refused to accept a credit card. But I'm pretty sure I popped the same question when buying the new Saabs, and got the same blunt answer both times. On all these various occasions, I paid by debit card or personal cheque, but only after inspecting and accepting the vehicle.

[JamesV70R]

http://volvoforums.org.uk/showthread.php?t=123624

^^ The thread SonyVaio is referring to I believe.

I was also under the impression that credit and debit card "fees" were only applied to transactions UNDER a certain value.

You'll have seen it in your local takeaway - "We regret that we can only take card payments for orders over £5" for example, or "We will charge a 25p card fee for any orders under £X"

[ewanc0]

http://www.whatcar.com/car-advice/bu...ayment/3141776

[cosworthy2000]

I've followed that thread, I have to say the experience would have put me off.
Pretty set now, they can have balance by debit card after I inspect the car on Friday.
If that ain't good enough for them, may have to walk away, but what of my £1k deposit??

[kebab10]

The £1k deposit was paid by credit cards for goods? Not taking the goods? Its your money. Any problems, contact the credit card types and get them to do a chargeback. Dont forget the money saving site from Martin Lewis.
http://www.moneysavingexpert.com
Plenty of tips there for you.

[Chaddie]

I've always paid the deposit on a Credit Card, which is always between £1k to £2k; if you pay over £2k the dealer will normally add a surcharge since they have to pay a % of the amount to the credit card company and it's why they don't want the full on a credit card, I've always paid the remaining balance on the day I collect the car paying on a debit card.

The debit card payment is as good as a bankers draft to the dealer, they know it's cleared funds.

DO NOT PAY THEM IN ADVANCE, ONLY PAY THEM WITH A DEBIT CARD ON THE DAY OF COLLECTION AND AFTER YOU HAVE INSPECTED THE CAR....