Hello,
I?ve been a long-time lurker of this forum, but have only just got round to registering. Anyhow, I?m in the process of buying a new Hyundai (an i30 estate, diesel, comfort spec) from a Hyundai dealer. It?s the first time I?ve bought a ?new? car (actually, a pre-reg but it will apparently only have a few miles on the clock). But I decided to take advantage of the scrappage scheme to get a reasonable discount off the i30 list price by trading in my old banger.
About a week ago, I paid a deposit of 500 GBP by credit card and the salesman said he?d arrange for the car to be delivered this week and then I?d pay the remaining balance by debit card. Today he phoned to say the car?s arrived, and now he requires payment for the full amount. ?Fine?, I say, ?I?ll be down to collect, pay the balance and then drive the car away?. ?Oh no?, he says, ?it takes 2 days for our bank to process the payment and us to do the paperwork, only then can we hand the car over to you?! I offered to pay by bankers draft but that apparently means I have to wait 7 days for payment to be processed. He was adamant that this is the case for all new Hyundais, and I got the impression it was only Hyundai manufacturers that did this. I reluctantly agreed to go in early next week to pay the balance, and then wait 2 days for the handover. But I?m annoyed that this convoluted process was not mentioned prior to me paying the deposit.
Just seeking some advice from anybody who?s bought a new Hyundai recently to see if this is the way it works when you buy a new car these days?.Thanks in advance.
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You can tell the Hyundai dealer, as a matter of fact, Ford dealers accept 'there and then' payments for cars by debit card.
The payment is deemed to have cleared as soon as it is authorised, same applies to £50 of groceries, or £15,000 of car.
I would be interested to know what the dealer thinks happens in the two days he is asking you to wait.
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I have paid by Debit Card on collection at Ford, Citroen and Fiat outlets with no problems. But make sure that you ring the bank first to save any potential embarassment. No processing involved, the funds are good into the garage account.
I think that you are being fobbed off with an excuse, the dealer is unlikely to be be Hyundai owned, most of the H dealers around here are smaller private owned outlets with a couple of manufaturers products.
You could of course take a mate, and collect the cash on the way! This will probably cause the garage more grief particularly if greater than £10k. Bellboy will probably advise.
p
Edited by pmh2 on 25/06/2009 at 18:55
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Many garages will not accept cash payments, if it's over £9,000 they need to report it to HMRC because of anti money laundering regulations.
It's over 4 years ago now, but I paid for my Volvo with a debit card. They had to phone for authorisation and needed to pass the phone to me to answer some security questions, but it didn't take long.
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2 days to process a debit card payment, I don't think so. I bought something at 3pm today by debit card, just checked my online account (5-45pm)and it has already hit my account. If you really want to pick up the car asap why not suggest that you will pay in hard cash and see what their reaction is. Take a couple of big mates with you when you draw the cash out of the bank though!!!!!
Paid for our new Nissan (main dealer) by debit card and drove off in it there and then. Really don't see why you should have to make 3 visits to buy a car.
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The dealer is obviously trying to boost their cashflow and nothing else. Its not a normal policy and im sure if you tell them that the way they are behaving is making you consider backing out of the deal, they will soon find your way acceptable.
My dad bought my mums Hyundai in full £16.5k by debit card after paying a £100 deposit. My dad quite rightly said he wanted to inspect the car as it would be delivered to him before he paid any money.
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"...My dad quite rightly said he wanted to inspect the car as it would be delivered to him before he paid any money."
Absolutely agree. I too would refuse to hand over any final balance (however significant/insignificant) until I'd srutinized the vehicle's condition meticulously on the dealer's premises.
It's a complete no-brainer and I wouldn't subscribe to this '11th-hour' request in any way, shape or form. You should have been informed of this 'transaction requirement' long before now.
Best of...
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Thanks for the quick replies! I did offer to pay in cash but he said they don't accept cash payments over 5000 GBP.
I hear what you're all saying, but the garage have got my 500 GBP deposit and apart from making my objections about this delay known to the salesman I don't think I have any choice apart from paying, then waiting 2 days. Other than that, I'm happy with the car and (until now) the salesman. But I never realised buying a new car was so much hassle!
I've also been offered a 1100 GBP 'essential care package' (GAP / Gardx / extended warranty / alloy insurance / tyre insurance / misfuelling insurance / blah blah blah). And the salesman also is offering a 5 year servicing package (basically 5 annual services) for 1000 GBP. Which I've yet to formally decline, but almost certainly will.
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>>It?s the first time I?ve bought a ?new? car (actually, a pre-reg but it will apparently only >>have a few miles on the clock). But I decided to take advantage of the scrappage scheme >>to get a reasonable discount off the i30 list price by trading in my old banger.
This part of the story raises questions for me.
I understood that the scrapage scheme applied only to new new cars. A pre-reg car is technically used and as I understood it not subject to the scheme.
In fact one of the conditions is:The new car must be registered to the claimant as the first registered keeper
I would also not be prepared to pay two days in advance of seeing the car. Say the dealer goes bust after you've paid but before you collect? OK, perhaps not that likely, but the consequences would be enough to prevent me taking this risk.
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£1000 for 5 annual services is a bit steep since my mums Hyundai Coupe V6, which I would say should be on paper more expensive to service than an i30, got 5 years servicing for just £870 and that includes the 5 year cambelt change.
Personally, I think your being done over all round.
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I paid a 500 pound deposit for my Vectra then paid the balance on the day of collection by bankers cheque.I would not part with any money until i had inspected the car in minute detail.
I would never pay upfront for any car or servicing.Can you imagine paying the 1000 pounds for servicing and the garage goes bankrupt in 1 year.You've then lost all your money.
It sounds all a bit suspicious to me.Like someone else said the scrappage allowance is only on new cars so prehaps this delay is a tactic used to get around selling a pre-reg one.
If you haven't already collected the car then say you'll pay on the day after inspecting it or you don't buy it at all.
Listen to all the people on here that have bought many new cars between them and then tell the salesman and see what he says.Also ring your bank and ask if direct debit is instant in which case he hasn't got a leg to stand on.
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debit card is an instant payment. I think they may be having to deliver a large number of cars trying to utilise there time to best effect or alternatively sitting on a couple of days interest.I would pay on the day when you collect not for something you havent seen.
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June last year I got a lift to Murray Mazda, edinburgh some 95 miles from home paid £14500 by debit card and drove my MX5 out of the garage. He's talking pants.
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Just to clarify - the car I'm purchasing is apparently now at the dealers. I'm booked in to go and see the dealer early next week to inspect the car and pay (and do the paperwork I think). But I'm not allowed to drive it away until 2 days later! That's the salesman's view anyhow. (The salesman originally wanted me to pay tomorrow and then collect next week, but I don't want them to have my money during the weekend. Besides, I'm away all day tomrrow).
Yep, I agree it looks dodgy andI agree that debit card payment is an instant payment method. But if the salesman won't back down and agree that I can take the car away once I've paid, do I have a chance of getting my 500 GBP deposit back (paid by credit card) if I decide not to purchase - on the basis that the payment transaction hassle wasn't explained upfront? Yep, my main concern is if the dealer goes bust in the 2 days before I collect the car, but the showroom does seem quite busy on the 3 occasions I've been there recently.
Ok agreed, it's not worth purchasing the service plan or essential care package.
re: scrappage allowance. Yep, all this hassle might be a way of them getting round selling me a pre-reg car using scrappage allowance. It took them a week between me paying a deposit and the car arriving at the dealers (from where, I don't know). It doesn't especially bother me if I'm registered as the 1st or 2nd owner - I just want to collect the car (and all vehicle documents) when I go and pay.
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ebayman
We bought an i20 a few weeks ago under the scrappage scheme. Our dealer also insisted we pay a few days in advance and I also was not happy about that, but it does seem to be standard practice. When we went to pay, I insisted on seeing the car and was not pleased when I found it at the back of the lot covered in tree sap and other unpleasant stuff - making it impossible to inspect for scratches, marks etc.
But I must say the car was in perfect condition when we went to pick it up - so I guess it turned out all right.
I would also be a little concerned about buying a pre-reg car. As said above, I think you have to be the first registered keeper for the scheme to apply.
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Hyundai servicing is VERY expensive. I was quoted £240 for the third year service and £380 for the fourth. This was for a little 1.3 Getz.
Needless to say, I went elsewhere.
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Sounds to me you're being taken for a ride.
The scrappage scheme is for new cars at first registration not pre-reg cars. I guess the dealer is selling you a pre-reg car & giving you a discount + PX allowance equivalent to scrappage.
I would question the dealer as to why it is pre-reg & tell him you ordered a new car under scrappage & this is what you expect to recieve. If he refuses to swap the car, write to him cancelling the order & asking for a return of your deposit (copy Hyundai UK & the RMI). If he refuses contact trading standards & a solicitor
I collected a new car (not Hyundai) on March 1 this year. Paid a £200 deposit on order (Visa) & paid the balance (£7300) by debit card in the showroom on the day of collection; a couple of security questions but no bother from the bank or the dealer. He's lying if he says it takes 2 days to clear
I also paid £300 for a 3 year sevice pack, but I can't say how much 5 years for a Hyundai works out at individually
Why would you want an extended warranty on a Hyundai? And do you intend to fill it full of unleaded?
Don't pay more than £500 for Gap, GardX & tyre insurance
It seems to me the dealer is taking the proverbial all ways
Oh, & don't forget, it's when dealers are very busy that they go bust - they have to pay for the new cars in full off the manufacturer but only get part of the money back from the customer plus a lump of metal that can sit there for who knows how long - Cash flow & lack of credit is the dealer's biggest enemy not slow sales
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Hi brg190 - hmm...it's (slightly) comforting that at least one other person who has bought a new Hyundai recently had to pay in advance as well. The dealer wasn't based near south coast by any chance? Did they give you any reason why you couldn't take the car away immediately?
Hi bonzodog - to be fair to the dealer, it was made clear to me that it's a pre-reg I'm buying (how they do it via the scrappage scheme wasn't my concern at the time) and I got a small discount for buying a pre-reg car, in addition to the scrappage allowance. Arguably, it might be not as good a deal financially as buying an unregiastered car, but I don't especially care whether I'm the first or second owner of the car. In any case, I was intending to keep it for a few years, so any financial disadvantage to having a previous owner (probably the Hyundau garage?) registered on the document would probably disappear after a few years.
My main concern is having to wait 2 days between handing over full payment and collecting the car. Anyhow, I'll think about it more over next few days.
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how do you know the car you are taking isnt a rejected lemon?
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ebayman
No, the dealer wasn't near the south coast. While I wasn't particularly happy about paying in advance, especially as the car was in a state when we first saw it, I also thought the risk was pretty small. TBH, the dealership experience wasn't great but, so far, having had the car a month, we are very pleased with it.
The trouble is that, especially buying a small Hyundai, they just can't get enough cars to satisfy demand - so this means you end up feeling a bit less of a valued customer.
But stick with it. Early days for us, but feels like a premium car at a budget price!
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ebayman
Based on my experience, this seems to be standard Hyundai practice. You have to weigh up the risk of the dealership going bust between payment and collection against the benefit of buying the car. But make sure you have a good look over the car before paying - hope you're more successful at that than I was!
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ebayman
First time posting on any forum, but feel compelled to do so on this one. I just bought an i30 (great car btw!) new under scrappage from a Hyundai franchase owned by a large Scottish motor group (you know the one if you live north of the border).
I paid £3000 off list for a new car with my name 1st on the V5. I paid £100 deposit (debit card) and two weeks later I paid the balance with a credit card and drove it away 1/2 hour later. Don't put up with this.
Its only my opinion, but avoid this one and get your £500 back. Cancel the order and phone the bank - you've spent the money on your credit card, believe me, they'll tell you how to get it back! Go to another Hyundai dealership and get a straight scrappage special.
As an aside, I was also offered supaguard (£350 for some polish and 1/2 day's labour? - declined), gap insurance (up to you) and 3 years servicing for £495. When the salesman showed me the fixed price servicing, it was set to cost £420 or something so he did me a favour. Can't fault my experience of this particular dealership... so far!
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Hi ebayman,
Picked up a new i10 yesterday for my wife - nothing to do with scrappage, so a straighforward purchase. Dealer (who incidentally are south coast based and are allegedly the biggest Hyundai dealer in UK) couldn't have been more helpful. Car was on order for six weeks and arrived almost exactly when they said it would. They were only too happy to accept payment of the balance by debit card on collection of the car. Tried it on by asking if they'd take a credit card - so I could get some loyalty points, but declined that as they have to pay a surcharge on credit card transactions over £1k (I already knew that but had a go anyway).
Car was immaculate, dealer was efficient - all in all a very pleasant experience and much better than many other garages I have dealt with. Car is wonderful - even thinking of buying myself one now to use as main car.
However, speaking to the salesman - they are now quoting late October deliveries for i10s!!
In essence, the dealers all seem to work differenly, and I certainly would be very unhappy if a debit card payment was not acceptable when I collected the car!!
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I've bought a couple of Hyundais in the past and always settled the balance on the day with debit card - dealers in Wigan and Bolton and not a hint of trouble.
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Presumably the garage will want to keep the car for an extra two days if the OP pays for his first service by debit card.
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Point has been made here but not as loudly as I would have. The moment you pay for goods or services, but don't take delivery you become an unsecured creditor. You are at the back of queue if they go bust.
Such is the nature of the motor industry that companies go bust with very little warning. (Sure the issue of fraudulent trading exists, but proof is difficult and still won't get you money back).
When I paid for my last new car I had to use a bankers draft, and the company needed sight of it 24 hours before collection. This I considered odd but arranged, and allowed them to take a photocopy, but I was very pointed that it was not leaving my possession. I think such an insistence by the customer should be understood by anyone in business.
I'd voice the concern to he salesman and see what the reaction is. It may well be that a mutually acceptabloe solution exists and in which case, go ahead. If it doesn't walk and ask for your money back, and if needed, point out that the deal has fallen through due their adoption of strange and unacceptable business practices. Unless this is clearly in the contract you signed you should get your money back, but have to "create" with the credit card company. If this is all above board and the company do want your money, don't be too surprised if an acceptable solution is found.
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I suspect your order stipulates that your car will only be supplied against cleared funds. In this respect the dealer is being correct in the strictest sense as a debit card payment takes 2 working days to hit the merchant's account (i.e. if you pay on Monday, the money will hit the dealer's account on the Wednesday).
The are obviously taking the same approaching with a bankers cheque which takes 5 working days to clear fully.
However, most dealers accept a Chip and PIN debit card payment as "cleared funds" even though technically it has only cleared as far as their merchant provider.
I suspect you cannot cancel on these grounds without losing your deposit as in the strictest sense the dealer is correct.
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Oh, and just to add I'd certainly agree with asking for a photocopy/scan of a bankers cheque and verifying it with the issuing bank. There are loads of dodgy ones and anyone with any sense will check it.
If your bank does the Fast Payments System and it is under £10,000 you can just do an instant transfer once you've seen the car (use the dealer's PC) otherwise you'll need to do a CHAPS.
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Their view...
You are no doubt an honest bloke but we can't afford to let the car go until the money is actual sitting in our account, you might be a fraudster.
Your view.... You could take the money and go pop over night leaving me as an unsecured creditor.
Just about sums up the level to which we have sunk in this country.
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We must also blame this money laundering malarky as well. Has the figure for using cash ever been increased since it's inception ?. What's the problem with issuing the customer with a contract that states that should the transaction be the subject of a money laundering investigation that finds against the customer, the customer loses ownership of the car or is subject to other measures ?
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If the dealer goes bust, if you can prove you have paid then the car is yours - they are just storing it for you. The liquidator/administrator would not be able to keep it.
To use a comparison, if a company leasing 20 cars goes bust does the lease company lose them? Of course not.
Most dealers will accept debit card as final payment as long as it is chip and pin as the main fraud responsibility then rests with the card issuer.
Dealers do not like cash because it is expensive to bank and has security implications - the anti money laundering is usually just an excuse not to take it.
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Major alarm bells ringing here !!!!!!
It cant be a scrappage deal as you are not the first owner.
So question that screams out to me is are they pulling a fast one with you px ? .. maybe salesman keeping the car for himself ?
Ask to see the invoice as it must show £2000 allowance for your car if it dont show on the invoice then its not a scrappage deal.
Simple explanation over wanting the money now is because month end tomorrow and salesman wants the deal into June rather than wait for his comission a month longer (sales staff are paid commission month in arrears)
Personally I would insist on speaking to the dealer principal / general manager.
BTW those service prices / gap insurance etc are inflated by about 100%
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sorry forgot to say dont pay until you are actually taking delivery !!!!
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It can still be a scrappage deal - just not the Government's.
It is only a £1000 benefit so if the px is potentially worth more than £1000 then garages do not put cars through the scrappage scheme regardless of how they are sold.
It is their right not to - once you've sold a car, it is up to the purchaser what they do with it.
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An update:
On Friday I phoned the 'Hyundai information line' using the tel number on the general Hyundai website. They said it was standard practice at all Hyundai dealers to not release the car until 2 days after full payment had bveen made due to their 'banking processes'. I also phoned my credit card company to ask if I could hypothetically get my deposit refunded if necessary. They said it was unlikely, but they couldn't say for certain until I filed an actual claim. They said the dealer probably covered this issue in their terms and conditions but I couldn't find anything on the back of the deposit invoice, apart from having to wait for cheques to clear before releasing the car.
Anyhow, I went back to the dealers on Monday, they showed me the car, in spotless condition. They said they could make an exception and allow only 24 hours (rather than 48 hours) for the handover. So I paid the remaining amount by debit card and arranged to collect the car today.
And today I collected the car. Everything is fine and the dealers hadn't gone bust during the preceding 24 hours, though I'm still not entirely sure if the car was sold to me as a brand new car! It only had delivery mileage (25 miles) on the clock and the sales invoice said it was a new car (whereas the invoice for my deposit said a pre-reg car). The dealer said I'd get the V5 by post in 10 days or so because it's coming direct from DVLA and certainly implied that I'd be the first owner.
I'm fairly sure the dealer is simply going to scrap my traded-in car. He didn't show any interest in inspecting it and gave me the old tax disc back so I could get a refund on it.
I guess overall I don't have anything negative to say about the dealership apart from the new car / pre-reg car confusion. And there wasn't much pressure on me to sign up to the 'essential care package' or 5-year service package, which I didn't. But I still don't understand why a customer isn't allowed to drive a car away immediately after paying - in this day and age it just adds unnecessary stress. Or at least make it clear to the customer before they pay a deposit so that they can make an informed decision whether to proceed. But in my case everything worked out ok in the end.
Thanks everyone for your comments!
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My dealer told me I could pick up the car on the day I pay by direct-debit.
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