Reply With QuotePre COVID I paid with debit card ,no issues.
Supposed to be collecting a new to me car tomorrow as my company motor finally goes back. Not viewed it in the flesh yet.
Had a slight tussle with the dealer as he insists there is no way he can accept a debit card payment on the day of collection, and wants a BACS transfer in advance.
Apparently all down to COVID and Boris not letting dealerships open for anything other than click and collect.
When pushed about the fact he managed to take a deposit with no qualms, the statement was ‘there’s no swerving it’.
Such behaviour doesn’t sit well with me as I smell BS. My guess is they are charged commission on debit card payments at a higher rate than their bank would charge for a BACS transaction.
Needless to say I’ll be paying when I’ve seen the motor, even if it takes an hour or so to clear.
Is it normal practice for dealers not to accept debit card payments? It’s not a backstreet garage btw, it’s a brand dealership.
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Pre COVID I paid with debit card ,no issues.
Where I worked all sales were pushed to card payment.
I have paid for a car with a debit card but I couldn’t take the car straight away - had to wait 24hrs. Not entirely sure why, probably a payment / security measure.
I had to pay by bank transfer for mine in December, barring a £500 deposit which I put on credit card just to ensure I had 'coverage' on the whole purchase.
I had to play by faster payment whilst at the dealership. It was received within minutes so no drama for me.
I’m guessing you have a bit more protection if paying with a debit card than a bank transfer? So I can see your point of view if that’s the case.
So as retired dealer heres how it generally works...
If we get paid via debit card we still have to wait 48 hours for it to become cleared funds and if stock is on a bulk finance plan car has to be debited the day it leaves the premises so that often leaves a funding gap ‘cashflow’....
So its quite normal to ask for debit card for deposit when taking order which clears well prior to delivery as its paid days or weeks prior to collecting....
But insist on cleared funds BT / Faster payment prior to or on day of collection to ensure no cashflow gap....
If you haven’t seen car pay using your phone banking app whilst there and wait until their accounts dept confirms receipt...
Pain i know but in motor trade cashflow is king.....
To comply with Covid, it must be click and collect.
The last car I bought they wouldn’t accecpt a card mind you.
We picked a new car up on Monday - all car 'showrooms' are currently closed due to Covid, only option was BACS, which can be via mobile banking app as already mentioned.
When you look long into an abyss, the abyss looks long into you.........
Mrs Rod paid for a car recently with a debit card through a Toyota dealership.
The last but one car I bought I paid with debit card. The last one - same official Honda dealership - I was asked to sort a BT in advance of collection. I didn't give any thought - one less thing to do when collecting the car as far as I was concerned. In each case I'd paid the deposit by credit card for back up peace of mind.
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Sounds a bit strange, doesn't seem like a covid requirement, probably as you say a cost issue for them.
Last car I bought I insisted on paying via a credit card otherwise no sale, and they were happy to accommodate, earned a decent chunk of miles on that.
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Always paid with debit card, apart from the time it takes to auth large payments over the phone never had an issue. I have purchased 6 cars this way in the last 10 years, but none in the last 14 months.
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I’m having a car delivered to me next week and they offered me whatever way I’d like to pay. I would suggest the dealer wants bacs payment due to no charges rather than take a 0.30-0.50 % hit with a debit card.
Last edited by Franky Four Fingers; 18th February 2021 at 20:16.
Originally Posted by Bonzodog
Plus one, on numerous occasions
I've bought a few cars from a dealer friend, he likes bank transfer because it's cheaper and he gets the money there and then.
Obviously depends on the dealer; paid for one in August by debit card and drove it away.
Payments without chip and pin are not guaranteed by the card provider. Small deposits are accepted at the retailers risk. Large balance payments are, therefore, a major risk and not likely to be accepted.
Covid should mean the showroom is shut, so click and collect demands just that. No payment on site on the day...
The local Land Rover dealer here has two gazebos out front with patio heaters burning, a restrictions-swerving outside office by all accounts!
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