Payment

Upon finding your ideal car, you are most likely to be asked to put down a deposit prior to settling the entire amount and also take delivery.

Here are a few simple tips which should help smooth running.

  • A deposit removes the car from sale, with the provison that you are going to buy it. Should you cancel the sale due to a change of mind, or because you have found a better car elsewhere, you can lose your deposit.
  • The amount you pay for a deposit is going to vary dependent on where you purchase the car from. A prestige dealer is likely to ask for at least £1000 against a factory order. If it is a private purchase, about £100 is usually fair.
  • If you are buying from a garage, you are able to pay your deposit with by cheque, cash, debit or credit card. Remember that personal cheques need time to clear. Credit cards of course provide the best level of protection as any payment is covered by the Consumer Credit Act. Should the garage try anything untoward, you have greater rights.
  • Pay the balance on the deal when you go to pick up the car up. Remember that bankers drafts clear in 10 minutes, whereas, cheques take several days.
  • Do not attempt to pay huge sums of money in cash as the garage can legally refuse to accept it. More than £10,000 in cash for a single cannot be legally accepted due to 2003 money laundering regulations.
  • Credit cards are probably the safest way to pay. Of note is that a dealership can charge a handling fee on bigger amounts due to the commission they need to pay on every card transaction. Debit cards do not normally operate on the same commission system.