New car - dealer wants to register, tax & get paid early

[anonymous-user]

After deliberating about selling my old car, I made a snap decision & flogged it last weekend. Have now found & done a deal for a new Yaris GR Sport. Deal done over the phone so far and I said I was looking to take delivery anytime after 1st April.
With the deal pretty much done (distance sale) the salesman now says he wants to register the car at the end of this month to hit his sales target. It's not a big deal to me as it's going to be a 2023 '23-plate regardless, however he's said he wants payment (of the £8k customer deposit) made by 29th March so he can go ahead & register & tax it.
My plan was to pitch up to the dealer on an agreed April handover date, pay on my debit- card as I've done with no problem at dealers in the past, & take the car.
I'm wary of paying £8k early, especially as I want to check that the car is in the condition it should be for a brand new car (I was at a Kia dealer last weekend & 2 of the 6 brand new cars in the showroom had sizeable dents in the rear quarter panels)! The salesman made no mention of a loss of month's tax to me, or do they register it for 13 months or something? In an extreme example I worry that they could even fail & shut up shop between me paying & the delivery date.
My husband says to tell the dealership that I want it registered & taxed in April & that I'll pay by debit-card on the day. He says the salesman is making the issue of him not hitting target my issue. I'd like the salesman to hit his target but not if I'm expected to pay for the car at least a week early & not if it's going to short change me slightly on road tax. Any advice would be appreciated.

[Panamax]

It's not at all unusual for a "nice price" to only be available for registration in a particular month. The reasons are exactly as described - the dealer will be on bonus from the manufacturer for achieving sales targets and that means registration targets.

You've just got to make up your mind whether you want the car this month or the same car for a higher price registered next month. The early months of the year are notoriously difficult for anyone whose job is selling new cars. People are short of cash after Christmas and don't really want a new car until the spring.

[anonymous-user]

Understood panamax however the salesman only brought this issue up this afternoon so he's hedging his bets.
My husband tells me that whatever I do I shouldn't pay anything until handover day as if there were a problem with the car then I've little leverage to get it resolved. I totally get that but then he is the type of person who will pull the plug on a deal at the drop of a hat if it doesn't feel right.

[Sheepshanks]

It can be taxed for a year and a few days.

[Rough101]

Done this years ago, was registered a bit earlier, taxed for 12 months for us, 2 T shirts, full tank of fuel and a goody bag, so the dealer made the bonus. Had zero impact on resale or anything else.

[anonymous-user]

Thanks guys. That solves the easy bit however what about the issue of paying a week+ early? Just doesn't sit well with me.

[Captain Smerc]

Go with you gut.

[b0rk]

Are you getting a discount or incentive for it being registered slightly early and the payment made in advance sight unseen?

If not I’d tell them that you want it registered on/at collection and will pay on the day.

However early payment isn’t unusual my last two new non financed cars the dealer asked for payment to be made prior to collection. The car was in both cases registered on collection day. I had been to inspect prior to collection too, so happy to pay upfront.

[Sheepshanks]

Jostan said:

Thanks guys. That solves the easy bit however what about the issue of paying a week+ early? Just doesn't sit well with me.

Use a credit card, or a debit card with purchase protection. I think may debit cards have that now, but you’d have to check with your card issuer.

[anonymous-user]

b0rk said:

Are you getting a discount or incentive for it being registered slightly early and the payment made in advance sight unseen?

I'm getting a very good deal however the salesman had indicated from the start that they wouldn't get the car until the first or second week in April. I said that was fine as I couldn't buy it until at least 1st April anyway. Then yesterday (Saturday) afternoon he said it looks like they'll be able to get the car early & so brought up registering it in March to help him hit target.

Sheepshanks said:

Use a credit card, or a debit card with purchase protection. I think may debit cards have that now, but you’d have to check with your card issuer.

Thought about credit-card but dealer will charge 2% (on £8k) if I do (I hardly ever use it & it only has a £4k limit on it anyway). My debit-card doesn't have that level of protection.


I think I'm just going to tell him that I'll take delivery in April as originally planned & will pay by card on the day. He can register & tax car early if he wants, as long as I'm not disadvantaged. If that's an issue for him then I'll cancel the deal. I'm in no rush to buy & there will always be another car.

[ingenieur]

Why do you want to wait for the car? If it's the logistics of collecting it why not ask to have it delivered instead?

Also, the risky bit aside for a second... the salesman is giving you an opportunity for a discount. Say you'll go ahead with the target payment if he gives you £750 off.

[anonymous-user]

ingenieur said:

Why do you want to wait for the car? If it's the logistics of collecting it why not ask to have it delivered instead?

Also, the risky bit aside for a second... the salesman is giving you an opportunity for a discount. Say you'll go ahead with the target payment if he gives you £750 off.

I think they're probably already at the best price just to shift another unit & hit either the saleman's target or the dealership volume target or both. Regardless, it doesn't suit me to take the car early for a few reasons & delivery/further discounts won't change that. We'll no doubt speak tomorrow & I'll stick with paying for & taking delivery in April, & he can register & tax it in March if he wants as long as it's of no detriment to me. I'm not comfortable with paying up front so if the dealer is insistent about that then I'll cancel & buy another car elsewhere.

[Monkeylegend]

You are the customer, do it as you want especially if you are not desperate for the car.

The other option is to tell him you will pay early but want a discount equal to 50% of his bonus for paying early, if not you will cancel the order.

[Panamax]

Monkeylegend said:

tell him you will pay early but want a discount equal to 50% of his bonus for paying early, if not you will cancel the order.

You've missed the point. It's almost certainly not the salesman's bonus that's affected, it's the dealership's bonus from the manufacturer. The customer's share of that = the discount already offered for prompt registration.

It's often mentioned late in the process because the customer is then faced with a simple choice; keep the discount or lose the discount.

Yes, it often ends up with a month wasted road tax payment. I'm not convinced it has any material impact on the value of the car when later sold second hand. If you think the impact would be bigger than the discount then obviously you'd walk away from the discount.

[Cogito Ergo Sum]

Jostan said:

Thought about credit-card but dealer will charge 2% (on £8k) if I do (I hardly ever use it & it only has a £4k limit on it anyway). My debit-card doesn't have that level of protection.


I think I'm just going to tell him that I'll take delivery in April as originally planned & will pay by card on the day. He can register & tax car early if he wants, as long as I'm not disadvantaged. If that's an issue for him then I'll cancel the deal. I'm in no rush to buy & there will always be another car.

The dealer is not allowed to charge any surcharge for using a credit card - many just won’t allow it and will take bank transfer only for larger amounts.

[Monkeylegend]

Panamax said:

Monkeylegend said:

tell him you will pay early but want a discount equal to 50% of his bonus for paying early, if not you will cancel the order.

You've missed the point. It's almost certainly not the salesman's bonus that's affected, it's the dealership's bonus from the manufacturer. The customer's share of that = the discount already offered for prompt registration.

It's often mentioned late in the process because the customer is then faced with a simple choice; keep the discount or lose the discount.

Yes, it often ends up with a month wasted road tax payment. I'm not convinced it has any material impact on the value of the car when later sold second hand. If you think the impact would be bigger than the discount then obviously you'd walk away from the discount.

Same difference. As the customer I would take the car when I wanted it, not geared around the bonus payment for the dealership or salesman.

[Panamax]

Monkeylegend said:

As the customer I would take the car when I wanted it, not geared around the bonus payment for the dealership or salesman.

That's fine, so long as you don't care about the discount. I accepted a car earlier than I really wanted and wasted 30 days road tax in order to pocket a hefty cash discount. Monthly new car registrations are an important measure in the motor industry so there can be benefits for customers.

I've just checked the first registration date of my car - 30 October - and the invoice shows a discount of £1,800 (5.5%) on a newly launched model.

[alscar]

Jostan said:

I think they're probably already at the best price just to shift another unit & hit either the saleman's target or the dealership volume target or both. Regardless, it doesn't suit me to take the car early for a few reasons & delivery/further discounts won't change that. We'll no doubt speak tomorrow & I'll stick with paying for & taking delivery in April, & he can register & tax it in March if he wants as long as it's of no detriment to me. I'm not comfortable with paying up front so if the dealer is insistent about that then I'll cancel & buy another car elsewhere.

For the sake of a few days it seems a shame to fall out ?
How many identical cars at an equally good deal are available elsewhere ?
It sounds like you have yet to pay any deposit.
The salesman asking you to pay a deposit to register and tax for you to then show up 2 days later to pay the balance and take delivery ( or get it delivered ) doesn’t sound too outrageous from either of your positions.
I’m assuming this is either a MD or decent Indy ?

[anonymous-user]

Cogito Ergo Sum said:

The dealer is not allowed to charge any surcharge for using a credit card - many just won’t allow it and will take bank transfer only for larger amounts.

I didn't know that. Maybe their purchase agreement needs updating as it clearly states a 2% credit card surcharge.

alscar said:

For the sake of a few days it seems a shame to fall out ?
How many identical cars at an equally good deal are available elsewhere ?
It sounds like you have yet to pay any deposit.
The salesman asking you to pay a deposit to register and tax for you to then show up 2 days later to pay the balance and take delivery ( or get it delivered ) doesn’t sound too outrageous from either of your positions.
I’m assuming this is either a MD or decent Indy ?

I wouldn't fall out with him & I've only found one identical car that is close to this deal which is £103 more expensive & the 1st service isn't included, though it is much closer & easier for collection so that's a possibility. I'd be happy to pay a deposit to allow them to register & tax it but he is now looking for full payment & there would likely be 5-7 days between that & me taking delivery.

[alscar]

Jostan said:

I wouldn't fall out with him & I've only found one identical car that is close to this deal which is £103 more expensive & the 1st service isn't included, though it is much closer & easier for collection so that's a possibility. I'd be happy to pay a deposit to allow them to register & tax it but he is now looking for full payment & there would likely be 5-7 days between that & me taking delivery.

Your original post said £ 8k deposit hence my comment but tbh even if looking for full payment I'm still not quite sure what the issue is ?
I have paid in advance for most cars I have bought over the last 5 years albeit all from MD's etc.
Personally I don't like the potential on pick up day of there being an issue with card payments or whatever and would rather just ensure that all I need to do is just enjoy the collection.
Obviously if you are paying 100% slightly early then perhaps insist on full tank of petrol etc.