Paying for new car in dealership

PhoenixRising

Hi all,

Quick question. I have a new car ordered for January. The dealer rang last week to confirm that the car will be ready to be collected on the 4th. This is the first time I've bought a brand new car and was wondering about what form of payment the dealer will accept on the day I go to collect the car. I'll be trading in my current car and paying the amount outstanding from my own resources. Now, I presume they won't accept a personal cheque on the day, so that leaves either a bank draft or else cash. Does anyone, specifically those in the car sales trade, know what the 'done thing ' is on collection day?

I will obviously call my dealer in the morning to find out exactly what they'll accept, but just wanted to get a head start because the only day I'll be able to arrange a bank draft is tomorrow morning due to work commitments between now and Christmas. Thanks.

parsi

A personal cheque is fine.

Anan1

Unless they know and trust you, I can't see them taking a personal cheque. A draft would be best.

rainbowtrout

last 2 times i traded in, last time in january for a new car, i paid balance by personal cheque both times, neither dealership knew me. In all fairness when you are buying a car from them you're giving them all your details for registration and they are on the cert from your trade in car so it's not like they can't track you down. I can't see paying by personal cheque being a problem, come to think of it, it's the only way i've ever paid (the balance) for a car

Anan1

Perhaps it varies by garage? I've only ever sold cars for one main dealership in this country, and we never took personal cheques in final payment. My mother bought a new car from Maxwell earlier this year, and they also specified that they would require a draft. As we all know, tracking someone down and getting your money are two quite different things.

parsi

Any dealer will accept a cheque. All my cars have been paid for by cheque and the dealers didn't know me from Adam. As rainbowtrout said - they have all your details anyway.

The only guys who wouldn't want a cheque would be dodgy guys trying to stay under the radar.

Anan1

parsi wrote: »

Any dealer will accept a cheque. All my cars have been paid for by cheque and the dealers didn't know me from Adam. As rainbowtrout said - they have all your details anyway.

The only guys who wouldn't want a cheque would be dodgy guys trying to stay under the radar.

See my post above.

Pete67

I've always used personal cheques, even when buying new without a trade in. Never had a problem.

crosstownk

PhoenixRising wrote: »

Does anyone, specifically those in the car sales trade, know what the 'done thing ' is on collection day?.

Different dealers will have different policies on what method of payment is acceptable. Some will accept a cheque, others won't - especially if they've been stung in the past.

The best thing to do is ring the salesman and ask him.

PhoenixRising

Thanks for all the replies. There seems to be lots of varied opinions on this. I spoke to a salesman friend of mine on the phone tonight and they said a bank draft or cash is the only way.

I think I'll just get a bank draft as it seems to be the best bet. At least then there is no risk of problems on collection day. Will give the dealers a ring in the morning to confirm what they'll accept.

mikemac

I'm not trying to hijack this thread, honest

I've only ever paid by bank draft.
But is it true a dealer would give even more a discount for paying with cash, no doubt the dealership would be dodging tax somehow.
If you said I'll pay cash (I mean banknotes, not the trade-in situation), do you get more of a discount than with a cheque or bankdraft?

crosstownk

In my experience a 'cash' sale simply means a 'straight' sale - no trade in. If the dealer is doing things by the book, the method of payment should make absolutely no difference to the price.

ninty9er

micmclo wrote: »

I'm not trying to hijack this thread, honest

I've only ever paid by bank draft.
But is it true a dealer would give even more a discount for paying with cash, no doubt the dealership would be dodging tax somehow.
If you said I'll pay cash (I mean banknotes, not the trade-in situation), do you get more of a discount than with a cheque or bankdraft?

first rule of business is keep as little cash as possible on the premises, which is why I'd hazard a guess at bank draft or credit card.

I do know people who've paid by credit card, obvioulsy it'll take a few minutes while they authorise a big transaction in one go like that but I don't see there should be a problem if you have the money in your CC account

dingding

ninty9er wrote: »

first rule of business is keep as little cash as possible on the premises, which is why I'd hazard a guess at bank draft or credit card.

I do know people who've paid by credit card, obvioulsy it'll take a few minutes while they authorise a big transaction in one go like that but I don't see there should be a problem if you have the money in your CC account

I found a car delaer was reluctant to take a credit card as he would loose to much on the transaction, I think it was 8K at the time.

I have paid for all my cars with a bank draft.

bazz26

I usually pay by draft but I tend to get a small fraction of the agreed price in cash, say €100 or €200. In my experience they may give you back a €20 note for good luck though this really does depends on who you are dealing with.

colm_mcm

I wouldn't accept a personal cheque, unless it was for a small cost to change, they were a repeat customer, or they collected the car after the cheque cleared.

Owen

micmclo wrote: »

If you said I'll pay cash (I mean banknotes, not the trade-in situation), do you get more of a discount than with a cheque or bankdraft?

Not a chance. It's a form of payment, just like the other two. The price is the same. The only people who might consider doing it for 'cash' are the smaller backyard dealers who might not want to put a car through the books. You certainly wouldn't find any main dealer doing it, and even if they did, would you want to deal with a garage like that?

PhoenixRising

For info, I spoke to the dealer on the phone this morning and he said they would need a bank draft. They are a Volkswagen/Audi main dealer in Dublin.

Thanks again for all the replies. I have to say I was quite surprised that this varies so much between dealers. Some insist on a bank draft, some don't and some will take a personal cheque, others won't. The moral of the story being, if in doubt pay for your car with a bank draft to avoid any problems!

Mr. Presentable

I've bought mine with credit card, once with personal chq. Cheque should be fine.

MarkN

Without even thinking straight I paid the balance in cash on a car I bought last year. It was only €8,000 to change but the counting process took far too long and I would never bring cash into a dealer again.

Apart from that, only every paid draft. Joe Duffy wouldn't take a personal cheque anyway.