Cleared payment 2 days before collection?

Cleared payment 2 days before collection?

Author
Discussion

MikeO996

Original Poster:

2,008 posts

223 months

Saturday 23rd July 2016
quotequote all
We're in the process of buying a caravan (which I am seeing as the same as buying a car).
The dealer is wanting the full payment cleared in his account two days before we pick it up. This seems a bit excessive to me; my concern being that if we turn up and he hasn't done the little jobs he's promised then we have zero leverage.
Tbh there's not a lot we're asking of him so the risk is probably minimal, but it seems wrong to me.
Very much in contrast to my last car purchase where the dealer didn't ask for a deposit and was quite happy to let me drive off having just handed over a cheque.

Edited by MikeO996 on Saturday 23 July 16:52

Butter Face

30,192 posts

159 months

Saturday 23rd July 2016
quotequote all
MikeO996 said:
Very much in contrast to my last car purchase where the dealer didn't ask for a deposit and was quite happy to let me drive off having just handed over a cheque.
Did you buy your car in 1972? hehe

I would say that cleared payment 2 days in advance doesn't seem unreasonable, are they nearby? You could arrange to go in 2 days before collection, make sure all is ready and pay the balance then go back to get it safe in the knowledge it's ready.

Most dealers will take a debit card on collection, but sometimes that goes wrong and it's annoying for all involved!

X5TUU

11,908 posts

186 months

Saturday 23rd July 2016
quotequote all
Why don't you agree to a decent deposit and cash on collection (or bankers draft) no issues with clearing risks then?!?

MikeO996

Original Poster:

2,008 posts

223 months

Saturday 23rd July 2016
quotequote all
They've had a 10% deposit, calling in two days prior probably isn't going to practical but I could probably do the day before.

Edited by MikeO996 on Saturday 23 July 16:54

31mph

1,308 posts

134 months

Saturday 23rd July 2016
quotequote all
MikeO996 said:
They've had a 10% deposit, calling in two days prior probably isn't going to practical but I could probably do the day before.
Surely this is the whole point of paying a deposit?

I see no reason why you shouldn't be able to just pay the remaining balance in cash when you collect

Krikkit

26,500 posts

180 months

Saturday 23rd July 2016
quotequote all
31mph said:
MikeO996 said:
They've had a 10% deposit, calling in two days prior probably isn't going to practical but I could probably do the day before.
Surely this is the whole point of paying a deposit?

I see no reason why you shouldn't be able to just pay the remaining balance in cash when you collect
Especially if there are some jobs required as part of the sale. Have these been documented in the sale agreement?

wack

2,103 posts

205 months

Saturday 23rd July 2016
quotequote all
It's much simpler to settle any balance by debit card or bank transfer on collection , I've bought a few vehicles like this

MikeO996

Original Poster:

2,008 posts

223 months

Saturday 23rd July 2016
quotequote all
Updated to say I've emailed the dealer this afternoon and he's replied to say that he's now happy to accept payment on the day. Feels like it was worth challenging.

V8LM

5,166 posts

208 months

Saturday 23rd July 2016
quotequote all
MikeO996 said:
We're in the process of buying a caravan (which I am seeing as the same as buying a car).]
This is your problem. One is buying a thing of joy, something to look forward to enjoying to free roads and open air, to be able to go where you wish, to be able to soak up the countryside and push the hassles of modern day life to the back of your mind.

The other is buying a caravan.

MikeO996

Original Poster:

2,008 posts

223 months

Saturday 23rd July 2016
quotequote all
Yep, I will be that mobile chicane.

POORCARDEALER

8,523 posts

240 months

Saturday 23rd July 2016
quotequote all

Doesnt he take debit cards?

MikeO996

Original Poster:

2,008 posts

223 months

Saturday 23rd July 2016
quotequote all
I'm sure he does, we're talking a big scale business here, not some part timer. My guess it that it just makes his life feel a little easier, and more cynically puts him in a stronger position if any last minute problems do crop up.

steve-5snwi

8,593 posts

92 months

Saturday 23rd July 2016
quotequote all
For smaller dealers it helps with the cash flow but we would never request payment up front, we are happy to take debit card on the day of collection or bank transfer.

TVR1

5,460 posts

224 months

Saturday 23rd July 2016
quotequote all
steve-5snwi said:
For smaller dealers it helps with the cash flow but we would never request payment up front, we are happy to take debit card on the day of collection or bank transfer.
This. To be fair to the dealer, whilst it is a very crack handed way of doing things, I'd imagine this time of year he is delivering a massive number of vans. They are probably all on a stocking plan. The difficulty is (as with all areas of the motor trade) that once your van is invoiced, stocking has to be settled. This means that he may, possibly, have quite a number of vans going out and will have a huge debit back.

We have around £5 million worth of used car stock on my site. Our floor plan funder also finances so one instantly settles the other but perhaps once or twice a year we'll have a load of (cash) cars going out one day but invoiced the day before and even we hit stocking plan limits.

If it isn't an issue, why not pay in advance? You will instantly have a massive good will bank for any future issues.


Edited by TVR1 on Saturday 23 July 19:22

steve-5snwi

8,593 posts

92 months

Saturday 23rd July 2016
quotequote all
Also, with debit card it can take 3 days to clear which again doesn't help because the goods have gone but you cannot buy new stock until the money is in your account. Unfortunately it's one of the downsides of the car trade, if I was to buy your car privately you would want the money in your account and cleared before releasing it, however if a dealer asked for payment to clear before releasing a car then customers wouldn't like it (I would be no different)