Dealer insisting on bank transfer - normal?

[Yam16]

Done the same as most other folk. £500 deposit on CC. The rest of the deposit will be however they want it paid. Likely to be bank transfer, but I'll check to make sure it doesn't delay handover. I've done large transfers before and have done it in the bank/building society and got the cashier at the counter to process and confirm. I remember getting a large refund for a cancelled holiday. They sent £1 through first to confirm correct details and the rest followed after that confirmation. If you're concerned, try that. It's a bummer though, if it delays pick up of the vehicle. We've all been waiting a long time!! 

[Hornet3D]

2 hours ago, Catlover said:

Sorry, in my above post I should have said whilst we were away our house was NOT broken into. My mistake.

Well that is a relief, strange how three letters can change a whole scenario.

[Mike2222]

Thanks for all replies & opinions. The general consensus I'm getting is that whilst not unheard of, it is a bit unusual to insist on bank transfer and expressly refuse debit card. But also general agreement that is poor business practice not to openly declare this from the off. 

It's not going to stop me going thru with the purchase, and still very much looking forward to new car, but it slightly sours the relationship with the dealership. Also it comes across as a relatively new policy, and I wonder if it's driven by a frankly callous disregard for customer base who have no negotiating position due to prolonged shortage of new vehicles, ie "we can do what we like because you can't go anywhere else without going to the back of the queue for a 4-6+ month wait, lose your finance offer, and the base price has increased in the interim. Mod edit if you're not happy about it, cos we'll find a new customer for your car in a heartbeat, plus make a bigger profit off them.".

It's a shame really, as up to this point I definitely would have recommended them, as otherwise sales guy has been very helpful and prompt replies to queries etc, plus comes across as genuinely uncomfortable about having to force said company policy. 

Thanks all. 

[Hayzee]

Mike......."expressly refuse debit card" Really? Don't understand that.

[Mike2222]

1 hour ago, Hayzee said:

Mike......."expressly refuse debit card" Really? Don't understand that.

Direct quote from sales rep email in response to me querying whether debit card would be an acceptable alternative, as I wasn’t very comfortable with a bank transfer, especially when all ordering process has been remote and we’ve never met:

In regards to payment i'm very sorry but our company policy is bank transfer for any amount above £500.00, and also we have to have payment in prior to handover, it has to be in and cleared the day before as the system will not allow taxing/registering to take place until all documentation and payment is received.

[Flatcoat]

I agree you should have been forewarned but debit cards have been known to be stolen. My ‘ex’ was in new car sales and There have been instances of cars getting stolen through fraudulent purchases so dealers have to protect themselves. 

[Mike2222]

1 hour ago, Flatcoat said:

dealers have to protect themselves

That’s what insurance is for.

I take your point that it is reasonable for a retailer to take reasonable precautions, but by the same logic no retailer should accept any payment without sworn affidavits/fingerprints/DNA/any other hyperbole that takes your fancy. They will require bank details and ID for the finance anyway, and if they follow their procedure to as much as a reasonable legal system would expect, they are as much the victim of fraud as the person who has been identity theft-ed (not a word, but easiest way to phrase it). 

The retailer’s transaction fees argument has more logic to it, but my understanding is that CC has large fees, but debit cards are relatively marginal and similar level to bank transfers, so to refuse this as an alternative seems odd, unless trying to limit a customers consumer protections etc, which is fundamentally dishonest. 

[Stopeter44]

1 hour ago, Mike2222 said:

They will require bank details and ID for the finance anyway

That would more likely be Toyota Finance, not the dealer. The dealer acts as an agent for Toyota Finance, or am I missing something ?

[Cyker]

Is this an actual Toyota franchised dealer btw? That's such a weird stance to take...

I wonder if they accept Paypal or bitcoins?  

[Lawnmowerman]

When buying this car in September the dealer asked if I needed finance etc. I said no I would pay the balance due - unless there was a 0% offer.

And there was 😄. But, the value of my p/ex was higher than the limit for the finance deposit. So, not only did I get my shiny new car the dealer PAID me £10,000!

Of course 2 years down the line the balance will be due but, for the moment, I would rather have the money than them 👍.

[Cyker]

If they get you to accept a 0% finance offer, push them for more discount! My uncle lost an extra £1000 off the offer because he didn't qualify for finance so I suspect they get a big chunk of extra wiggle room by convincing you to take the finance.

 

[Peterd23]

This has happened to me more than once with franchised dealers. I was a bit suspicious at first but never had a problem. Not sure that upfront explanation is required as that would then need to cover every scenario - including taking in used bank notes !

[Hybrid21]

I took the 0% PCP option, seemed good at the time and pushed by the dealer, but not sure now if I made the right choice 😕

Iain

 

[Mike2222]

They let me pay the £500 on credit card first (I had never paid a formal deposit at point of ordering),  and after sending £100 and having it confirmed as arrived, I sent the rest. 

Picked it up today 😁! Very happy. Sales guy still seems a nice chap (everything done remotely up to today). Turns out the policy is only about 6months old, since the dealership was taken over by Vertu chain. Was previously a family owned dealership, and seems like the staff are finding the corporate approach somewhat less pleasant place to work.