Due to pick up my Karoq on Saturday and I was expecting to have a good look before handing over my debit card. However got an email from the dealer saying the money needs to be transferred 48 hours before collection.

 

Is this Skoda policy or a dodgy dealer who wants to get my money before I start pointing out issues?

I paid on collection at dealer, each dealer can set their own terms.
 

I would imo challenge that and pay on collection / inspection...

 

I'd pay on hand over after I've Inspected the car. If it ain't what you ordered and not to spec you'll have paid and might have a problem getting your money back.

 

Payment means you have excepted the car, thats the way I see it anyway.

Its up to the dealer.

 

If you are doing a bank transfer for weekend, they need to check bank, and in some cases weekend transactions wont show until Monday

If you are paying by debit card, should be able to do it there and then (assuming the funds are in your account)

 

If the dealer needs the funds 2 days before then he has possibly run out of credit with the manufacturer and needs to pay for the car for them to release title to the garage.

I would be wary as dealers usually have a credit line that is big enough to finance dozens of cars (they wont have prepaid for all those new cars in their compound), but instead will pay few weeks later

If they need prepayment (even 48 hours) regardless of method you are paying, then something seriously wrong.

 

Of course beware of scam / fraud emails, do NOT transfer money to an account number you get from email

 

Edited 17 October, 20187 yr by SurreyJohn

No car there for inspection and hand over then pay no money.

 

Speak with the Dealer Principal or Finance Director do not just go be some email.

Do they want you there with your card 2 days before you become the registered keeper and then the owner of the car if you are buying with your own cash money and not finance?

 

Buyer beware, and buyers of pigs in a poke be very aware of handing over money and having nothing.

I paid my deposit 2 days before

 

paid it off after 4 days. All benefits retained. £13.32 interest. 

I had the same from the Skoda dealer when buying a second hand car. 

No issues paying at pickup when my wife changed her car in January.

Skoda dealer told me it was down to changes in the law to do with money laundering limiting the amount you can pay by card.

You don't say whether you are taking the car on finance.  If you are I wouldn't be too worried as the agreement will be regulated by the UK Consumer Credit Act (you appear to be in the UK) which will provide you with protection.  But make sure you receive a clear receipt for monies paid over.

 

However, should you be a rare beast and are paying the full whack there and then, you need to be more cautious.  I don't know what the total cost of the purchase is, but if it is not more than £30K, I strongly suggest you consider paying for some of it using your credit card.  The sum doesn't have to be large (£100 or over is a a sensible figure to choose) but paying by CC provides protection under section 75 of the UK Consumer Credit Act and the credit card company (CC) then has equal liability for any problems with the car.  The CC company would also be liable if you had paid the balance early by debit card and the dealer went bust and took your money and didn't provide the car.

 

To repeat myself, this liability is for all the value of the purchase, not just the amount paid by credit card.  

 

More information at https://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act or https://www.citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/getting-your-money-back-if-you-paid-by-card-or-paypal/

I paid my deposit by credit card to get the protection before transferring the balance.

2 hours ago, SizzlingPotato said:

Due to pick up my Karoq on Saturday and I was expecting to have a good look before handing over my debit card. However got an email from the dealer saying the money needs to be transferred 48 hours before collection.

 

Is this Skoda policy or a dodgy dealer who wants to get my money before I start pointing out issues?

 

Would I pay before I'd even seen the car? Not while I still have a hole in my arse. I'd counter his offer and say you're willing to accept the car and pay him 2 days after collection.

Albeit some six years ago, my dealer said something similar about a couple of days so funds could clear, reasonable enough. I simply stated that they could watch me transfer the (50%, as the rest was interest free) on their computer as I had arranged for the bank to clear the greater than £10k amount before hand. No problem was the answer from the dealer.

Some very good tips here. Thank you all for the advice. I'm going to give the fella some grief!

 

Just glad the car is finally here. My first new car and it's going to be sad when my other half who doesn't drive much gives it its first scratches and dents ...

There are Money Laundering rules, like walking in with bags of cash money / and others rules.

Walking in with a Debit Card and a bank account with funds and a payment taken on a card just as many Dealerships or Traders pay for cars and they get all iffy.

 

Sauce for goose and sauce for ganders.

Then not forgetting the big UK banks that are money laundering on a huge scale and getting fined millions and billions.

Then the Motor Traders and Dealers fronting for Organised Crime.....

I paid rest of deposit 2 days before as the car was registered in my name then as they could not register on the day i picked it up for first year car tax

Money Laundering law relates only to large cash payments, and includes where the dealer is required to register as a "High Value Dealer" in order to be able to accept more than £8800 in cash. Bank transfer and debit card payments are not (as far as this Government guidance document is concerned) applicable. Wire transfer is mentioned
 

Happy to be corrected, but as far as I'm aware there's no issue with payment via debit card needing to be covered under the money laundering heading.

1 hour ago, Rustynuts said:

Money Laundering law relates only to large cash payments, and includes where the dealer is required to register as a "High Value Dealer" in order to be able to accept more than £8800 in cash. Bank transfer and debit card payments are not (as far as this Government guidance document is concerned) applicable. Wire transfer is mentioned
 

Happy to be corrected, but as far as I'm aware there's no issue with payment via debit card needing to be covered under the money laundering heading.

 

I presume they vary so that they are comfortably within the rules, as my local Audi dealer has a cash limit of £5k.

Edited 17 October, 20187 yr by Danny 57

I tried to pay off my PCP and VWFS have a £5k limit on over the phone debit card payments. You have to pay by bank  transfer or cheque. 

@SizzlingPotato how did you get on when you contacted the dealer? Be good to provide an update.

Pay on collection. Payment by card only takes around 2 hours so it is not as though a cheque has to be cleared.

a few years ago I paid for our new Lexus over £30k on my delta card went through no problem, bit shocked as I didn't even have to go through security, however I had transferred same amount from a savings account into the current account the day before.

@womanofkent The dealer stuck to the idea of needing it transferred versus a debit card payment.  So in the end i caved and gave him the money the day before so that i don't sit there at the dealer on the day of collection waiting for the potential 2 hours faster transfer time.  If i knew long in advance i would have made it clear i'm only paying by debit card, but i trust the guy, the dealership was unlikely to run away in a day and i was TOO keen to get the car asap.  You should bring it up with your dealer now if you are yet to pick up yours.  I got mine this morning and all was fine.  I ordered 2 tablet holders but there was only one - so the dealer's going to get me another.

We took delivery of ours end of January, via the PCP and then paid it off, we had the reverse because the car we traded in was worth more than the max deposit under PCP we had to wait a few days for the dealer to transfer the excess money into our back account