Payment

Once you’ve found the perfect car, you will probably be asked to leave a deposit before you pay the full amount and take delivery. There are some simple rules to follow to help things run smoothly.

• Remember that a deposit is just that; it removes the car from sale on the premise that you will buy it. If you cancel because you’ve changed your mind, or have found another car, you could stand to loose your deposit.
• The level of deposit required will depend on where you are buying. A small independent dealer may only require £100 against a cheaper car, while prestige dealers could want £1000 against a factory order. When buying privately, negotiate a sensible amount – £100 is fair.
• At a garage, you can pay a deposit with cash, cheque, debit or credit card. Personal cheques take time to clear and credit cards offer the highest level of protection because any payments made are covered by the Consumer Credit Act. This will give you greater rights if the garage tries anything underhand.
• Only pay the balance of the deal when you pick up the car. Personal cheques and bankers drafts are easier but personal cheques take time to clear, while bankers drafts take just 10 minutes to verify.
• Don’t try and pay large sums of money in cash. A garage should refuse to accept it. You are not allowed to pay more than £10,000 in cash for an item, as a result of money laundering regulations introduced in 2003.
• Credit cards may be the safest way to pay but a dealership may charge a handling fee on larger amounts due to the commission they have to pay on every card transaction. Debit cards don’t usually have the same commission system.