Dealers not taking card payments for used car

[TeaVR]

I'm supposed to be collecting a used car at the weekend, from a main dealer.

When purchasing a used car, I always pay a deposit, then look at the car, if happy I pay the remaining balance on a debit card whilst at the dealers.

This particular (main) dealer won't take card payments!!! Also, as it's the weekend tomorrow (apparently) won't be able to verify monies hitting their account via an online transfer (as their accounts team don't work weekends). The dealers solution is for me to make FULL payment via online transfer today.

I've never dealt with this dealer before, so I'm very uncomfortable sending funds to an unverified account. Also, I'm not willing to pay up front before seeing the car.

Anyone come across this scenario before?

[The Rotrex Kid]

Pretty standard stuff now. Card payments cost money, carry risk and are discouraged in preference of bank payments which are less risk and cost nothing.

[TeaVR]

Aren’t debit card transactions free?

[bigandclever]

TeaVR said:

Aren’t debit card transactions free?

Not for the merchant (it will likely be pretty small in the grand scheme of things though).

[Ankh87]

This makes no sense.

It's a main dealer so makes no difference if its debit card or bank transfers. If there is a delay, then it will happen with either if not both payment methods.

[911Spanker]

Just bring a suitcase full of notes in.

[nobrakes]

911Spanker said:

Just bring a suitcase full of notes in.

Will they accept a wad these days?

[The Rotrex Kid]

bigandclever said:

TeaVR said:

Aren’t debit card transactions free?

Not for the merchant (it will likely be pretty small in the grand scheme of things though).

But when dealer groups work on making 3-5% GP at EOY, the (many many) thousands of pounds paid in card fees add up! Save wherever you can!

[The Rotrex Kid]

nobrakes said:

911Spanker said:

Just bring a suitcase full of notes in.

Will they accept a wad these days?

Money laundering rules apply, most dealers will accept a max cash amount, £5k maybe, some only £500. Lots of work in moving cash around, actively discouraged.

[vikingaero]

nobrakes said:

911Spanker said:

Just bring a suitcase full of notes in.

Will they accept a wad these days?

In my experience, dealers only accept a wedge of cash. :

Taking credit cards on used cars means customers can claim under the consumer credit act. Taking debit cards means they can't, but Visa & Mastercard offer equivalency in chargebacks which dealers want to avoid.

[MitchT]

[The Rotrex Kid]

Ankh87 said:

This makes no sense.

It's a main dealer so makes no difference if its debit card or bank transfers. If there is a delay, then it will happen with either if not both payment methods.

On weekends, theres a very high chance there is nobody in from accounts/senior management who can check money cleared in a bank account.

If OP stamps his feet enough, they'll either do it or they'll pull the deal/refuse the handover on a Saturday. Roll the dice OP!!

[Sheepshanks]

I've never come across one that wouldn't take a credit card deposit (useful as it gives you some protection).

The vast majority of people will be putting the balance on some form of finance. I've done this for last few cars to take advantage of deposit contributions etc, then paid it off a few days later (by debit card, but can take a couple of trandactions).


Should also add I have had a couple of cases where dealers won't do handover at the weekend. Various excuses, but we collected one car on a Saturday morning a few years ago and it was a nighmare with both getting the payment done (was paying whole lot on a card then) and issues with the car. We were there 4 hours.

[TeaVR]

The Rotrex Kid said:

On weekends, theres a very high chance there is nobody in from accounts/senior management who can check money cleared in a bank account.

If OP stamps his feet enough, they'll either do it or they'll pull the deal/refuse the handover on a Saturday. Roll the dice OP!!

You sir can (almost) predict the future!

I threatened to pull the deal (as didn’t want to do a week day pick up). Dealer has kindly agreed to take card.

[The Rotrex Kid]

TeaVR said:

The Rotrex Kid said:

On weekends, theres a very high chance there is nobody in from accounts/senior management who can check money cleared in a bank account.

If OP stamps his feet enough, they'll either do it or they'll pull the deal/refuse the handover on a Saturday. Roll the dice OP!!

You sir can (almost) predict the future!

I threatened to pull the deal (as didn’t want to do a week day pick up). Dealer has kindly agreed to take card.

Standard.

They'll push you, but ultimately they want the car gone and the money in the bank. Not worth a bunfight over it.

Hope the car is all you hope it is, and as this is PH, what is it?

[vikingaero]

The Rotrex Kid said:

TeaVR said:

The Rotrex Kid said:

On weekends, theres a very high chance there is nobody in from accounts/senior management who can check money cleared in a bank account.

If OP stamps his feet enough, they'll either do it or they'll pull the deal/refuse the handover on a Saturday. Roll the dice OP!!

You sir can (almost) predict the future!

I threatened to pull the deal (as didn’t want to do a week day pick up). Dealer has kindly agreed to take card.

Standard.

They'll push you, but ultimately they want the car gone and the money in the bank. Not worth a bunfight over it.

Hope the car is all you hope it is, and as this is PH, what is it?

You could do a bank transfer on Friday and have a smooth handover, which I would do. Or there is the small risk of the card being declined by the Banks fraud team...

[davek_964]

The last used car I bought was from a specialist dealer who didn't accept cards, and I had to pay by bank transfer.

It was somebody well known, with an excellent reputation for the type of car I was buying, so I didn't really worry too much. I paid by bank transfer a few days before collection at a weekend.

[J77wck]

When making a card payment the bank takes a fee, but not on bank transfer.

Edited by J77wck on Friday 16th February 13:20

[georgefreeman918]

I would say this is fairly standard now (learnt from a bad experience).

I purchased a car we had previously owned, so it was pretty much as guaranteed as it could be that I would be buying it. A one way ticket to London (treated myself to 1st) and a 40 min Uber, I was unable to pay by card as they couldnt verify on a weekend! I had do the the same journey in reverse and come back the following weekend!

[80quattro]

TeaVR said:

I'm supposed to be collecting a used car at the weekend, from a main dealer.

When purchasing a used car, I always pay a deposit, then look at the car, if happy I pay the remaining balance on a debit card whilst at the dealers.

This particular (main) dealer won't take card payments!!! Also, as it's the weekend tomorrow (apparently) won't be able to verify monies hitting their account via an online transfer (as their accounts team don't work weekends). The dealers solution is for me to make FULL payment via online transfer today.

I've never dealt with this dealer before, so I'm very uncomfortable sending funds to an unverified account. Also, I'm not willing to pay up front before seeing the car.

Anyone come across this scenario before?

I work at a dealer group representing a bunch of Germans.

We don't take deposits from customer, just a signed order or email confirmation that a customer is happy to proceed.

We take card payment with PIN only and release the vehicle once funds have arrived into our account. Just because the payment has left a customer account does not mean its arrived in ours. We encourage bank transfer in advance, but no problem if customers prefer to send payment on handover - but we won't release it until we have cash in our bank - so explain to people there could be a wait depending on their banks' service. You would also be amazed at how many people/businesses do not realise they might have a daily limit.

We would rather possibly inconvenience the odd customer than expose the business to any risk.