How to pay?

[RizzoTheRat]

This is going to sound like a dumb question, what's the best way to pay for a new car?

My bank has a 25k limit on online transactions, which is less than the balance on the car, although I can apparently transfer 100k in 24 hours. Is it normal for people to make multiple payments without it looking a bit dodgy to the dealer? Presumably CHAPS is a bit over the top?

[DanL]

Ask your dealer.

Last car I bought they had something set up to facilitate payment - I can’t recall the details, but it was easy.

[davek_964]

A few years ago I bought a car with a debit card. The dealer had a limit on single payment amount (which was odd since all of their cars cost more than that) so I simply paid in two transactions.

[HTP99]

RizzoTheRat said:

This is going to sound like a dumb question, what's the best way to pay for a new car?

My bank has a 25k limit on online transactions, which is less than the balance on the car, although I can apparently transfer 100k in 24 hours. Is it normal for people to make multiple payments without it looking a bit dodgy to the dealer? Presumably CHAPS is a bit over the top?

Multiple transfers are fine, just let them know the breakdown of how it is coming in, TBH how payment is to be made should've been discussed by the dealer at point of order.

[RizzoTheRat]

HTP99 said:

Multiple transfers are fine, just let them know the breakdown of how it is coming in, TBH how payment is to be made should've been discussed by the dealer at point of order.

I haven't paid the deposit yet, I do plan to check that but I like to have an idea what the answer will be before I ask the question

[Rayny]

Go to the bank, withdraw the correct amount of cash, then walk to the dealer - But please reply to this post in order to let me know where and when you will be walking down a dark alley with the money

[UKsandman]

Rayny said:

Go to the bank, withdraw the correct amount of cash, then walk to the dealer - But please reply to this post in order to let me know where and when you will be walking down a dark alley with the money

Good luck with that. I recently had to withdraw £8k from the bank and I had to jump through hoops and provide evidence of the reason I needed so much cash.

[valiant]

Contact your bank and they can do it over the phone.

We did this for a motorhome a few years back and it was a simple process. A few extra security questions was about it and was then done instantly.

[Freakuk]

I've previously called the bank and explained the situation and the details of the upcoming transaction and value, went through without any issues.

[alscar]

I've bought a few cars new from dealers and in each case have transferred the balance in a number of daily payments in the run up to collection using online banking.
I suppose the only concern would be doing this if the dealer was very small and you were uncertain of perhaps their financials !
If you are particularly nervous you could ask them to confirm each payment to them when received.

[CG2020UK]

Last cars I bought I was just given an account number and sort code to send.

Transferred directly with a reference from my Monzo account.

Usually transferred the day before pickup and they confirmed funds received.

[DanL]

As an aside, the UK faster payments system has a limit of £1M, so it’s really down to the limit your bank applies to transactions rather than the system itself.

[paul_c123]

CG2020UK said:

Last cars I bought I was just given an account number and sort code to send.

Transferred directly with a reference from my Monzo account.

Usually transferred the day before pickup and they confirmed funds received.

Did you read the OP and what about being over his 25k limit?

[Mr Tidy]

Last time I bought a car from a dealer I paid the balance on my debit card, although it was slightly less than £25k. My bank called me for verification.

The same bank used to have a £10K limit for online payments, then for some reason suddenly reduced it to £1K.

I was buying a cheap runabout privately but still had to make 3 payments and only the first one went through. Their fraud team blocked the other 2 until I contacted them on the basis I had never made a payment to this person before. I explained I had never bought a car from him before.

I changed bank soon afterwards!

[Robertb]

Mr Tidy said:

Last time I bought a car from a dealer I paid the balance on my debit card, although it was slightly less than £25k. My bank called me for verification.

The same bank used to have a £10K limit for online payments, then for some reason suddenly reduced it to £1K.

I was buying a cheap runabout privately but still had to make 3 payments and only the first one went through. Their fraud team blocked the other 2 until I contacted them on the basis I had never made a payment to this person before. I explained I had never bought a car from him before.

I changed bank soon afterwards!

From the banks perspective they are on the hook for refunding push payment fraud. Not surprised they are cautious now.

[joeybe30]

I made two separate bank transfers from two separate accounts to get around my banks transfer limits. Was a faff especially as they held the second one pending security checks! A quick phone call got it sorted though.