VW dealer won't accept debit card payment

Engram · 10 Nov 2014 at 15:18

I've put a deposit on a used VW (at a main dealer). I'm paying entirely in cash (no part exchange or finance).

The dealer tells me that I can only pay the remaining balance by bank transfer - they don't accept debit card payments on the day.

Has anyone else heard of this? Every other car that I've bought has been on a debit card.

hyperseven · 10 Nov 2014 at 15:20

I know why they would not take large cash amounts, but not debit cards?

Engram · 10 Nov 2014 at 15:24

When I first asked they said it's because they need cleared funds for the road tax payment.

But then I asked if I could transfer enough to cover the tax, and then pay the balance on debit card, and they said they don't accept debit cards at all! Odd.

Castiel · 10 Nov 2014 at 15:24

I have never heard of that. I'm sure the VW doesn't know about it, I bought a VW Golf and a VW Up on debit cards from two main dealers (Martins of Andover & Heritage of Salisbury) as well as buying my Audi A6 on my debit card from Poole Audi. A debit card payment is cleared funds so that's not really a good argument either. Sounds a bit iffy that a main dealer doesn't accept debit cards.

Tell them debit card or you're walking away.

Engram · 10 Nov 2014 at 15:27

Castiel said:
Tell them debit card or you're walking away.

I think it might be a bit late to walk away.

In a way I don't really mind. I am reasonably confident that the car will be fine on the day, and that they will act honestly. But I do like to keep my options open, and if I pay before that final inspection I don't have many options.

Castiel · 10 Nov 2014 at 15:30

Engram said:
I think it might be a bit late to walk away.

In a way I don't really mind. I am reasonably confident that the car will be fine on the day, and that they will act honestly. But I do like to keep my options open, and if I pay before that final inspection I don't have many options.

You haven't paid or taken ownership so it not too late. It's up to you but I wouldn't be paying the full balance until I picked up the car, no ifs or buts.

Not accepting debit cards rings alarm bells of all kinds for me.

Engram · 10 Nov 2014 at 15:31

Castiel said:
You haven't paid or taken ownership so it not too late.

I've paid a £500 deposit and signed an agreement to purchase the car!

daz · 10 Nov 2014 at 15:33

That's pretty amazing - the processing fee for a debit card transaction for most is probably around 20-30p (as opposed to credit card which will be a percentage). It's probably the absolute easiest way to transfer!

Django x2 · 10 Nov 2014 at 15:37

Call VW UK and ask them the policy for their franchised dealers. That'll sort it.

Engram · 10 Nov 2014 at 15:38

Django x2 said:
Call VW UK and ask them the policy for their franchised dealers. That'll sort it.

I'll do that. Currently waiting for a call back from another dealer in the same network, to see if they have same policy.

Castiel · 10 Nov 2014 at 15:39

Engram said:
I've paid a £500 deposit and signed an agreement to purchase the car!

How did you pay the deposit?, and an agreement to buy doesn't deprive you of your consumer rights. What does the contract state? Is there a cooling off period?

You say this is a VW main dealer? Are you sure, this sounds more like a dodgy backstreet dealer.

Engram · 10 Nov 2014 at 15:42

Castiel said:
How did you pay the deposit?, and an agreement to buy doesn't deprive you of your consumer rights. What does the contract state? Is there a cooling off period?

You say this is a VW main dealer? Are you sure, this sounds more like a dodgy backstreet dealer.

It does, doesn't it! No, they are definitely a franchised dealer and part of a big network.

Deposit is on credit card (phew!) Don't have the agreement with me at the moment, so can't check the terms.

Castiel · 10 Nov 2014 at 15:44

Engram said:
It does, doesn't it! No, they are definitely a franchised dealer and part of a big network.

Deposit is on credit card (phew!) Don't have the agreement with me at the moment, so can't check the terms.

I would definitely call the VW UK office and find out about this, I have never heard of a franchised dealer accepting a credit card but not a debit card. Sounds very fishy.

Engram · 10 Nov 2014 at 15:45

I think they would argue that one payment is the deposit, and the other is the final balance. But yes, it's very odd.

tom_e · 10 Nov 2014 at 15:48

Even most little back street places are happy to accept debit/credit cards although many will stick the fee on top for CC payments so this seems crazy and sounds more like someone has got their wires crossed somewhere.

Castiel · 10 Nov 2014 at 15:49

Engram said:
I think they would argue that one payment is the deposit, and the other is the final balance. But yes, it's very odd.

Yeah, but they told you they don't accept debit cards at all, so presumably they wouldn't accept it for the deposit either.

A debit card (from the dealers PoV) is the easiest payment to accept. I would be very, very careful here. I've never heard Of a reputable dealer not accepting debit cards, perhaps others have.

Finglonga · 10 Nov 2014 at 15:55

I paid the deposit for my GTI on credit card and then when I picked it up I paid the balance with my debit card with no problems at all. The dealer is run by the Swansway Group if that helps the op.

Castiel · 10 Nov 2014 at 16:01

How do people pay for servicing, etc at this dealership?

The more I think about it, the more dodgy it sounds.

opstrat · 10 Nov 2014 at 16:06

Castiel said:
How do people pay for servicing, etc at this dealership?

The more I think about it, the more dodgy it sounds.

aye. sorry only accept cash or credit cards. more chance of paying cash than credit card. cash off the books.

Engram · 10 Nov 2014 at 16:12

Castiel said:
Yeah, but they told you they don't accept debit cards at all, so presumably they wouldn't accept it for the deposit either.

I think they accept debit cards for the deposit.