When is it appropriate to pay the balance for your van?

Jonno1103

Jonno1103

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Having spoke to our dealer this morning they've said that they require the balance for our Pegaso 590 a week before handover. Is this normal, previously with the Tracker we have now we part financed and our PVC part ex was given to them on the day of handover?

Don't get me wrong, I have no issues with their service or the quality of their work which will include awning, air con and a few extra USB's and 230v sockets but I'm still uncomfortable handing over the best part 30k a week before a final look.

We'll have already committed to 31.5k in terms of deposit and part exchange by this time so surely they can't believe we'd pull out at such a late stage without further negotiation if we found something amiss?
 
Debit card payment on day of collection. The funds go straight to them without a delay. Provided of course you have funds in the account. If you are doing finance, bank transfer, that may take more time to process?

But apart from deposit, and perhaps a contribution to items they are fitting for you, don't pay up front. Too many horror stories of a dealer going under between customer payment and you getting the van. If the dealer has owned the van, make sure they confirm any stocking loan finance has been cleared.
 
Please resist all pressure to pay before the day of collection and after you've inspected the van and had them weigh it and confirm the MIRO of 2865. (y)

The only conceivable reason they want paying early is to help their cashflow, that is their problem not yours.
 
mike mcglynn said:
Do not hand over anything until you are 100% happy with your van and have given it a test drive .
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Well yeah I get that Mike, I've had a few drives in it already up the A1 to Scotch Corner and back, been over it 3 or 4 times with a fine toothed comb and again I'm not concerned about their workmanship It's the handing over of cash so early when I can just BACs it to them instantly on the day. Anything could happen to it sitting on a dealers forecourt a week before especially as I assume that by then the van will be my responsibility.

I'll ask you and scousebird... being scouse myself are we just naturally suspiciously gifted?

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We had someone start an exact thread a while ago, was it finished, can't remember but I think he wasn't going to pay till he got it.
 
I had no need to be suspicious of our dealer, they hadn't given us a time limit on handing over the balance. We trust them as this is the second moho we have bought from them and they have done all our servicing on the first so we have an excellent relationship with them.
 
Jim said:
Please resist all pressure to pay before the day of collection and after you've inspected the van and had them weigh it and confirm the MIRO of 2865. (y)

The only conceivable reason they want paying early is to help their cashflow, that is their problem not yours.
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I think you final point Jim has hit the nail on the head, they've been after our Tracker for while now, they know it and service it.

It's been weighed as per spec with me in it at 2896, we worked the options we wanted from that at around an extra 57-60kgs taking plates and bolts into consideration. I've already said I'll want to weigh it again which they have no problem with.
 
BACS type transfer may take a couple of days to process. There may also be a daily limit on the amount. My bank wouldn't allow more than £10k in one go. Even fast pay only means same day so dealers will need cleared funds before they release the van. Debit card is almost instantaneous and they know they have your money.

You don't handover your money until the vehicle will be in your control and ownership. At that point you would also be insuring so the only time it is then at the dealer is for servicing, not pre-sale.
 
Kannon Fodda said:
BACS type transfer may take a couple of days to process. There may also be a daily limit on the amount. My bank wouldn't allow more than £10k in one go. Even fast pay only means same day so dealers will need cleared funds before they release the van. Debit card is almost instantaneous and they know they have your money.

You don't handover your money until the vehicle will be in your control and ownership. At that point you would also be insuring so the only time it is then at the dealer is for servicing, not pre-sale.
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We can BACS any amount we like as long as the bank have prior notice but I agree entirely with your second point.

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We’re buying a new van, you know, the silver IH630RD that we ordered at the Malvern show! Their only stipulation is that on handover day we can only pay a max of £3000 by credit card but that if our funds don’t clear we can’t drive the new van away. That seems fair enough. We will pay the £3000 on our Tesco’s credit card to get the points, we had to pay a deposit at the show and did that by credit card for security.
 
No need for transfers, In my experience a debit card is fine to pay tens of thousands.

As for the we can only accept 3000 on the day, thats is just a ruse so you help their cashflow.
 
The first new van we bought, we paid for in full then went on holiday for a week while they got it ready and registered it, before we collected it

The latest van, we paid in full ( after a 10% deposit on the day of ordering) a week before collection by bank transfer, which in France takes a couple of days to process. They had to fit extras we ordered and register it for us.
I think you need to ask about the dealers payment policy before you think about buying from them, if you don’t like their policy, look elsewhere.
When we bought a used van from a dealer, we paid a deposit then the balance when we collected it.
 
If something is wrong with the van or something happens to the van after you've paid for it but before you have collected it. Its your van, and your problem.

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Pay on the day after you have thoroughly inspected it and are fully satisfied.
We paid a balance of over 30 k by card on the day. It went through without any problems.
 
Jim said:
No need for transfers, In my experience a debit card is fine to pay tens of thousands.

As for the we can only accept 3000 on the day, thats is just a ruse so you help their cashflow.
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Sorry Jim I didn’t explain that very well, most of it will be paid on the day by debit card or BACS once we have done the inspection, I think it was just that they didn’t want all £25,000 of it paid by credit card. Not sure that I’d have enough of a credit limit on a single credit card anyway. They haven’t wanted money upfront other than the initial deposit.
 
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Definitely only pay the balance when you collect the van and are happy with it. Not before.
 
As my van is at the dealers and has been for 3 months whilst I await warranty work as their have been a long list of issues ,most of which are down to the manufacturer, who has no understanding of the issues or indeed how to fix them as I have been directed to 3 separate Peugeot dealers ,and my dealer has been to at least three possibly four Peugeot dealers,with no joy .I have sent all parties pictures and a written report stating the problems .The latest news is my van will possibly be ready next week after a paint specialist has finished the faults.The converter has dealt with his side of things so I am told .I feel that since I paid cash up front by Debit card that it’s something that I would not do again it would be a credit card payment .By the way I started the complaint just before Christmas last year and the dealer after sales guy had just left my complaints sitting on his desk .I will not name the dealer as I think it would be unfair at this stage . The after sales guy is no longer with that dealer.
 
carolyn said:
Sorry Jim I didn’t explain that very well, most of it will be paid on the day by debit card or BACS once we have done the inspection, I think it was just that they didn’t want all £25,000 of it paid by credit card. Not sure that I’d have enough of a credit limit on a single credit card anyway. They haven’t wanted money upfront other than the initial deposit.
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Ah yes, credit cards are different, you can understand that they will want as little of the balance paid that way as possible as credit card transaction will cost them money as the credit card company will take a percentage by way of a fee.

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I wouldn't even pay on the day of collection.

With my last car i agreed to pay the balance within 14 days of collection, this was what i negotiated much to the dealers dissatisfaction. It gave me 2wks to find any issues (the front discs needed replacing as it had sat in field over winter) i had no issues in getting them to sort that as they knew they'd not see they final 10% unless it was reasonably sorted.

We are FAR too weak on negotiating payment terms when buying large items.
 
Transfer the money on the same day, if it’s a substantial amount just square it with your bank or FX company first.
 
Only pay on the day otherwise you will have seven really long days waiting to see if the dealer goes bust. It happens!
 
Pay for nothing up front and you will not ever suffer disappointment.
Paid a painter and decorator once up front just before Xmas.. thought I was safe because I drank with him in our local..Not seen him since..Once was enough.BUSBY.
 
I wish I had used either a credit card or put some of the van on H.P ( finance )
Certainly helps if your dealer turns out to be an Oxygen thief ⚠
Although my understanding is that a credit card will only provide any protection for purchases up to £30,000.00 so probably not much good .

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