Buying car, credit card charges?

[mr_spock]

Hypothetical-ish situation:

I put a deposit on a car a couple of weeks ago. At the time the dealer explained that paying the balance by credit card would incur a 3% charge, so I intend to pay by debit card.

However, as credit card charges are now illegal, should I be able to pay by card without him being able to charge the fee?

Just wondering. To be clear, I won't do this as I verbally agreed to pay by debit card and I keep my word.

[DaveH23]

Charging for using the card isn't allowed anymore but they can still charge an 'admin fee'.

[mr_spock]

I just checked the purchase contract. No mention of the card fee, and (of course) no admin fee.

[meridian]

Dealer will incur charge by processing the credit card, whether this is 2 or 3% or whatever. Any business would rightfully, and quite legitimately look to recoup that, unless they choose to include it as a gesture, goodwill, or a 'sweetener' at their discretion

If it cannot be charged as a credit card transaction fee, then it may perhaps be described as something else' such as service charge, adminstration fee etc. It is, after all an overhead of the sale. Key point would be what was discussed at time of deposit, and breakdown of balance due (quite obviously !) i.e if the customer had specifically stated that the sum due would be paid by credit card then the conversation would have had to been had

I think the understanding of this depends on whether you are in business for yourself, or if not. The 'if nots' generally would consider that any business should incurs these costs on their (the customer's) behalf, whereas many (i.e those of us in business) may not agree

[essayer]

There may be something in their T&Cs about taxation changes being passed directly to the customer..?

[HTP99]

He can refuse to take your credit card as payment, I should imagine that we will be doing so from now on, however we haven't had any communication saying as such.

[Trevor555]

I'm sure most car dealers will now put up signage to say they wont accept credit cards for balance payments.

The government surely can't expect the dealers to absorb this charge.

[evoivboy]

Trevor555 said:

I'm sure most car dealers will now put up signage to say they wont accept credit cards for balance payments.

The government surely can't expect the dealers to absorb this charge.

Why not? I can walk into Curry's and buy a £20k tv, bet i would'nt be charged for using a credit card!

[steve-5snwi]

Thats down to currys though, £150 on a 10k purchase (normally charges are anound 1.5%) soon adds up. If your profit is £1000 then £170 goes to the VAT man, £150 to the Card provider you have already lost 30%, for a small dealer thats quite a lot.

Edited by steve-5snwi on Monday 15th January 00:07

[mr_spock]

I called the LBC consumer advice show with this question, as they were discussing card charges this evening!

If they accept cards, they can't add a charge. Now I have a contract with a price, with no mention of card surcharges in the T&Cs all they can do is to refuse to accept cards.

Since the dealer is being OK with my part-ex and is happy to wait until I can take my plate off my current car, I'm not going to be a pain. I may see if they agree to take my card at 1.5% as I'll get a ton of mileage points.

[mr_spock]

Picked up the car today and asked about it. They only take cards up to £500 now, so basically deposits.

[Integroo]

DaveH23 said:

Charging for using the card isn't allowed anymore but they can still charge an 'admin fee'.

Only if charged for all methods of purchase, not just for credit cards.