Can I ask what mechanism peope have used to actually pay for their Yeti (or indeed any other recent Skoda purchase).

The two most recent car purchases I've made have been done by (i) ensuring that the final balance is cleared and available in my current account; and (ii) using a debit card immediately prior to handover of the vehicle to make the total payment (less any previous deposit of course).

The dealer that I had been intending to buy a Yeti from tells me that it's their company policy not to allow this practice, but that any payment via debit card needs to be made at least 1-2 days in advance of handover. No I've no reason to doubt the probity of the dealer in question and I accept that any risk involved is, in reality, pretty low. But it still seems to me that I'm putting a large chunk of cash (say £20K) potentially at risk if, say, the dealer were to cease trading between payment and handover. (And there might conceivably be other risks too - eg the vehicle could be damaged at the dealer's between payment and handover.) So I'm really not comfortable doing this.

My question is whether requiring a debit card payment ahead of time is common/standard practice nowadays? Am I likely to find that other dealers all use this practice now and so I've no option but to accept it? Or is this an unusually awkward dealer?

When I got my new car last month, I took the 0% interest finance option on half the car, and paid the remainer by debit card, when collecting the car.

I don't see why they wouldn't accept this. When I use a debit card in a shop, they don't insist on payment a few days before.....

I can only think that they've had problems with customers if they have to 'phone up the "bank" and go through security questions, and them getting it wrong, but that doesn't seem like a good reason.

Edited 27 February, 201016 yr by jrp

many dealers like you to pay the day before in case there are problems with your debit card on the day of colection. if you paid your deposit with a credit card you are covered for the whole cost of the car should the worst happen. if you didnt use a credit car for the deposit then make sure you part pay the balance with a credit card.

cheers, dave

Hi,

paid a small deposit on the credit card, which I believe gives you protection on the entire value no matter how you pay the rest and the balance on by debit card collection.

My dad though recently bought an ex demo Superb and had the same demand as yourself, first time he had come across this practice. Not very impressed but obliviously had to go along with it.

Regards,

TP

I have had 2 skoda's in the last 3 years. Alex Lawrie (Liverpool) and Mitchell's of Chester. Both accepted my payment card at the time of collection.

I will be paying by debit card on collection of car.

My bank told me that if I ring the security department the day before the transaction giving them full details of transaction it will go through as soon as I type in my PIN number. We will see.

As a backup if you do have the phone number of the security department of your bank card then if the card is not accepted a call to "security" will sort this provided for example an automatic sweep on your account has not helpfully moved most of the car money out into a savings account. This happened to me last time :(

Bought my Volvo last summer. Paid £500 deposit at time of order by credit card. On the day of collection just paid the final balance by chip'n'pin whilst at the garage and drove away. I checked with my bank(Halifax) a few days before the transaction to see if any further security hoops would have to be jumped through. They said not and were quite correct. Also carried out same practice when buying my MX5 the previous year.

Hi

For the Yeti I paid a deposit via credit card - which seem fair since the car needed to be orderd.

I then paid in full via Debit card the day before picking up the car ( the transaction was timed at 17:00 on the day before).

This was agreed at the time of ordering and verified a few days before picking up the car.

A few years earlier I bought a Renualt Clio and just used my debit card on the day.

For the Yeti the deal was through a dealer - and I think there is some financial step here that makes them take the money "up front" prior to obtaining the car,

whereas from a pure retail point of view - you could walk into any show room and use your debit card straight away.

Graham

a debit card is an instant payment, and is only possible if you have the required amount in your account. It clears immediately.

There should never be a problem with this. My absolute advice would be to double check WITH THE GARAGE concerned as to why they are insisting on non-industry standards.

I, for one, paid my deposit with a credit card - and (when it DOES arrive) will pay the balance immediately by my debit card. Beats carrying 20 grand in cash in my pocket (haha).

My absolute advice would be to double check WITH THE GARAGE concerned as to why they are insisting on non-industry standards.

The answer seems to be (i) that it's company policy (in other words, we're really not sure but we have zero authority to override it and if you wish to buy from us then that's what you have to agree to) and (ii). if pressed: 'there have been instances of customers driving off the forecourt and then immediately reversing the payment'.

Now I've no idea just how a payment like this can be reversed - it sounds very unlikely to me although conceivably there may be some mechanism.

But the bottom line is - as above - 'if you wish to buy from us then that's the deal'. I'm quite tempted to walk away from this one and see if I can get a comparable deal elsewhere, but it would mean going quite some distance further afield, which is a bit of a hassle. I was just interested to check whether enforced debit card prepayment had become a standard practice, but it seems like the answer's no.

See this Which page re paying with a VISA Debit Card.

http://www.which.co.uk/advice/your-rights-when-paying-by-credit-card/chargeback-on-credit-and-visa-debit-cards/index.jsp

"When can chargeback be used?

Like section 75, chargeback can be used in cases of goods not arriving, arriving damaged, arriving not as described, or where the merchant has ceased trading."

tom

The balance of my superb was paid for by debit card on the day of collection, £12,000 went through just like any other transaction, enter pin number and job done.

I have paid for my last two new cars with debit card on the day of collection. I always phone the bank before although they say that it makes no difference because there will be a security check anyway due to the amount of money involved. I looked at the Which? article and it states a 120 day limit to get your money back; that being the case, paying the balance a day or two before will be neither here nor there and nobody in their right mind is going to pay it 120 days before!. I would be very reluctant to make full payment for the car before checking it over.

Can I ask what mechanism peope have used to actually pay for their Yeti (or indeed any other recent Skoda purchase).

Hi there,

We checked with our dealer Startin Skoda at Powick, Malvern if they wanted a bankers draft and no they were happy with a debit card payment on collection, very considerate they were that we didnot incur a bank charge for the BD!

We collected our new 10 plate Yeti yesterday and had to answer security questions but went through fine...

until we got home late last night...

to find 6 messages on the answerphone from the bank fraud squad!! :S

I had to ring their 24hr hotline and go through more security checks to convince them it was ok and perfectly normal to spend nearly £22000 on your debit card!!

Anyway they released the hold on my account and cheerfully set me loose with the words "don't use your debit card for 1/2 an hour or so though!!"

I had a problem once - think it was for a debit payment of £12,000 for a Civic but the advice from the bank was to let them know in advance that a large payment was going to go through - they would then flag it on my account to avoid any issue. Having said that, Ive managed to pay for the last three cars via this method and I only let them know beforehand on the first occasion and Ive had no issue with the payment going through. :-)

There were no security checks for the 12K for my superb, or the 7K for my dads Fabia. Both paid for using a Barclays debit card, they went through just the same as paying for your shopping in Tesco.