Used car dealer question

[Cleisthenes]

Thanks guys, you've been very helpful.

I think he'll get them to take a bit on credit card and then the rest via BACS, it's £250 that's needed on card to get the protection right?

 

[Armageus]

it's £250 that's needed on card to get the protection right?

£100




(*technically doesn't have to be, as total purchase is more than £100, but probably makes things easier if you do)

 

[[TW]Fox]

This is annoyingly common, even some main dealers don't take payment by card.

We bought a new Mini and they insisted on Bacs. Really annoying.

 

[Joe T]

We bought a new Mini and they insisted on Bacs. Really annoying.

Would you be prepared pay more for the car if they offered a debit card payment (to maintain the dealer's margin)? Or are you really just moaning about nothing?

 

[[TW]Fox]

Would you be prepared pay more for the car if they offered a debit card payment (to maintain the dealer's margin)? Or are you really just moaning about nothing?

I wasn't that bothered with a new car but the problem arises with a used one. BACS is not instant and typically dealers ask for the money to be sent in advance of collection. But I would never want to pay for a used car before I am satisfied with its condition - fortunately every dealer I have purchased used from has happily accepted a debit card.

 

[Armageus]

BACS is not instant and typically dealers ask for the money to be sent in advance of collection.

BACS isn't but Faster Payments generally is.

 

[[TW]Fox]

BACS isn't but Faster Payments generally is.

Dealers still insist on it being done in advance because verifying receipt involves the finance department rather than just looking at the chip and pin machine.

 

[stoofa]

Surely you're inspecting the vehicle long before it's time to pay?
I went to look at the car on a Saturday, gave it a good going over, wet for long test drive. BACS payment on Wednesday, collect car following Saturday.

I "suppose" they could have totally trashed the vehicle between me seeing it one week and collecting the next, however BACS payment or not, I wouldn't be driving away if the vehicle was any different when I came to collect it from how I saw it the week prior.

 

[MissChief]

Surely you're inspecting the vehicle long before it's time to pay?
I went to look at the car on a Saturday, gave it a good going over, wet for long test drive. BACS payment on Wednesday, collect car following Saturday.

I "suppose" they could have totally trashed the vehicle between me seeing it one week and collecting the next, however BACS payment or not, I wouldn't be driving away if the vehicle was any different when I came to collect it from how I saw it the week prior.

Or changed the premium tyres for Chinese ditch finders as I've heard some dealers doing.

 

[stoofa]

Or changed the premium tyres for Chinese ditch finders as I've heard some dealers doing.

Yer - I've heard about that happening as well.
I'm rather a*** about tyres, I refuse to have anything but branded tyres these days. I don't buy cars regularly, but when I do I go out of my way to make sure that the cars I buy have a good tyre on and with at least enough meat to last me a little while.
Latest purchase I went around, it had identical P Zero's at each corner with similar wear.
I suppose if I had got there and the tyres had been changed that might have been difficult to prove. OK, I can see the argument when it comes to tyres.

 

[Housey]

Margins are tight in the car world, they will simply want to avoid paying the card fees and to be fair I get that.

 

[Kaka]

We incur a 1.2% fee on each card payment we accept at my workplace, but we have a low turnover so we're fine with that. For someone like a national dealership with sales in the billions, you can see how this would eat into their profits.

 

[[TW]Fox]

Surely you're inspecting the vehicle long before it's time to pay?

No, for my last 3 cars I have not seen them until collection day.

 

[jamoor]

The last two cars I paid with a credit card. Got loads of frequent flyer points from them.

 

[asim18]

As has already been said, banks love to siphon cash under the guise of "fees".

Up to 4% of all payments ever made, are siphoned even though it requires the SAME electronic process to process a £1.99 payment as opposed to a £10000 payment.

So if you ever have to pay someone £10000 the banks are laughing all the way to the bank LOL because they magically earn a £400 bonus, PLUS they also take a fixed fee for every payment on top of the percentage cut IIRC!


Trying to minimise the amount of your money, and their money, which is siphoned off by a bank. Cant believe they just siphon 4% of ALL payments and it happens every single minute. Horrible.





Imagine this on a small scale economy. Imagine Two sellers who are also each others customers. They have £100 each and they buy each other's produce. They trade with each other evenly, except they use the evil debit card.

The first full transactions they each make, they will be left with £96 each.
Second transaction, they will have 92.16 each, in the economy.
third transaction, they will have 88.47 each.
and so on.
Sooner or later a considerably large portion of the money in their economy will have been siphoned by the bank and the two trader's economy is now completely collapsed and the bank is empty because they have implemented a cashless society and banker is nowhere to be seen because he's sailed to Hawaii and is chilling on his yacht sipping £100 cocktails.

 

[mjt]

As has already been said, banks love to siphon cash under the guise of "fees".

Up to 4% of all payments ever made, are siphoned even though it requires the SAME electronic process to process a £1.99 payment as opposed to a £10000 payment.

So if you ever have to pay someone £10000 the banks are laughing all the way to the bank LOL because they magically earn a £400 bonus, PLUS they also take a fixed fee for every payment on top of the percentage cut IIRC!


Trying to minimise the amount of your money, and their money, which is siphoned off by a bank. Cant believe they just siphon 4% of ALL payments and it happens every single minute. Horrible.





Imagine this on a small scale economy. Imagine Two sellers who are also each others customers. They have £100 each and they buy each other's produce. They trade with each other evenly, except they use the evil debit card.

The first full transactions they each make, they will be left with £96 each.
Second transaction, they will have 92.16 each, in the economy.
third transaction, they will have 88.47 each.
and so on.
Sooner or later a considerably large portion of the money in their economy will have been siphoned by the bank and the two trader's economy is now completely collapsed and the bank is empty because they have implemented a cashless society and banker is nowhere to be seen because he's sailed to Hawaii and is chilling on his yacht sipping £100 cocktails.

Businesses making money is terrible, isn't it?

 

[Iamzod]

We incur a 1.2% fee on each card payment we accept at my workplace, but we have a low turnover so we're fine with that. For someone like a national dealership with sales in the billions, you can see how this would eat into their profits.

You are being fleeced. 1.2% is bonkers high.

 

[asim18]

Businesses making money is terrible, isn't it?

Sorry you haven't understood the post. The argument is NOT about any honest business dealings going on. It's specifically about credid/debit card interchange fees. lol.

In my example, nowhere am I saying the two business/traders are doing anything "terrible". In my example I'm talking about the banker siphoning 4% of all the cash flow between the traders, not the traders doing business with each other.


Therefore your question does not follow. I think business is great and some businesses are absolutely positive and must be maintained. In fact I was in support of small businesses when they banned shopkeepers from passing on the credit card fees to customers, which is terrible for small businesses because they have very small transactions and lose more money per transaction. So you simply cannot say I am against businesses making money. What I think is terrible is the siphoning of cash.


The point is NOT about any honest business going on. It's specifically about credid/debit card interchange fees. Clearly you have just completely shifted it to an assumption that the suggestion is that all "businesses" is terrible, while ignoring the actual specific thing I'm talking about.


In fact there's loads of controversy around interchange fees, just look at the wiki for starters scroll down to controversy:

https://en.wikipedia.org/wiki/Interchange_fee

 

[Iamzod]

As has already been said, banks love to siphon cash under the guise of "fees".

Up to 4% of all payments ever made, are siphoned even though it requires the SAME electronic process to process a £1.99 payment as opposed to a £10000 payment.

So if you ever have to pay someone £10000 the banks are laughing all the way to the bank LOL because they magically earn a £400 bonus, PLUS they also take a fixed fee for every payment on top of the percentage cut IIRC!


Trying to minimise the amount of your money, and their money, which is siphoned off by a bank. Cant believe they just siphon 4% of ALL payments and it happens every single minute. Horrible.





Imagine this on a small scale economy. Imagine Two sellers who are also each others customers. They have £100 each and they buy each other's produce. They trade with each other evenly, except they use the evil debit card.

The first full transactions they each make, they will be left with £96 each.
Second transaction, they will have 92.16 each, in the economy.
third transaction, they will have 88.47 each.
and so on.
Sooner or later a considerably large portion of the money in their economy will have been siphoned by the bank and the two trader's economy is now completely collapsed and the bank is empty because they have implemented a cashless society and banker is nowhere to be seen because he's sailed to Hawaii and is chilling on his yacht sipping £100 cocktails.

What are you rambling on about?

The interchange fee on a debit card transaction is capped at 0.2%, then you have a marginal scheme fee which is going to be something like 0.015% plus maybe a penny.

To be charged 4% means your provider quite frankly is taking you for a ride.

If you spend £100 on a debit card the base cost is roughly 24p not £4.

A 10k transaction can be done for less than £25, not £400. You need to learn to shop around.

 

[wesimmo]

Businesses making money is terrible, isn't it?

Seriously, don't get into this discussion with Asim, it's pointless. Pigeons and chess springs to mind.