Reply to: Buying a car from a dealer advice

[Moscow Mule]

You are not allowed to pay more than £10,000 in cash for an item, as a result of money laundering regulations introduced in 2003.

http://www.whatcar.com/car-advice/bu...ayment/3141776

That is a somewhat misleading interpretation of the act (IMO, IANAL).

If your dealer can be arsed, to set themselves up as a high value dealer then they are allowed to accept cash in any amount.

[Paddy]

the cash thing doesnt work any more. (well it hasnt worked for me the last few years)
they seem to be suprised when you dont want finance, and I think it puts them out a bit

sign of the times maybe

You are not allowed to pay more than £10,000 in cash for an item, as a result of money laundering regulations introduced in 2003.

http://www.whatcar.com/car-advice/bu...ayment/3141776

Even when you pay cash for a car, the dealer must report you to the Stasi and HMCR under the 2009 regulations.

http://www.hmrc.gov.uk/mlr/news/index.htm

[SueEllen]

Cash as in full amount upfront without getting finance, ie - paying by card.

You can.

They don't like it though as it doesn't help their commission.

[Moscow Mule]

As I understand it, it's very difficult if not impossible (due to money laundering regs)

Depends if the dealer is clued up or not.

http://www.hmrc.gov.uk/mlr/getstarted/register/hvd.htm

[BolshieBastard]

Ok this might sound a bit stupid but I haven't had to buy a car from a dealer is as long as I can remember due to company cars etc etc... so...what to do...

I have the car spotted. Seen dealer and had a look but not shown enough interest to take it for a drive. Lets say its around 14k and 2k cheaper than Glass guide.
Money is in debit account, don't particualarly want to take it out cash, or is it worthwhile doing so to help negotiation. Is this putting the cash on the table bit a load of rubbish?

How flexible can they be in the current climate bearing in mind it's under glass's guide already. He has only had it 2 weeks.

Should I have it AA checked before I agree a price or after agreement but obviously before payment?

Sorry for dumb question but been so long since I stepped foot in a dealer I feel like a complete noob!!

Think I'd walk away from this deal or at least investigate it very carefully. The dealer has only had it 2 weeks and its 2k under glasses guide? Doesnt stack up.

If all his cars are 2k under glasses value then you could argue he sells cheaply to move the metal. But if its the only one, I'd be concerned why he has valued it so low.

As for discounts, I dont know where some people have been for the last few years. Although its correct dealers have reduced discounts due to the car scrapage scheme, you could get very good discounts on cars. I got nearly 5k off the bimmer convertible when I bought it last june after the dealer told me they'd perhaps knock another '500 quid' off it. After a test drive and a couple of calls he knew I was interested but not at the price it was up for. He eventually called me and asked me where we were at so I told him I'd do the deal but at £x. Phoned me back after discussing with the 'business manager' that we had a deal. Sorted And its a great car, was out in it today with the roof down

I wouldnt bother so much about waving cash about and dont go in demanding a discount because the dealer 'cant sell cars' etc. Do your research about road tax, depreciation and how one or two other cars interest you and the dealers are willing to negotiate.

A dealer needs to move a car on after 90 days max on their forecourt. If the one you're looking at has only been on for 2 weeks, he may not knock much more off the sticker price.

Oh and the best time to buy a new / newer car is towards the end of the 3rd week of the month. That's when you'll get your best deal if the dealer is struggling to make his target.

[AtW]

As I understand it, it's very difficult if not impossible (due to money laundering regs)

Cash as in full amount upfront without getting finance, ie - paying by card.

The phenomenon it seems to me is that car prices are dropped to lure in suckers and main profit is made from "0%" finance deal. Just another example how unchecked financial junk is skewing otherwise normal businesses.

[Platypus]

You can't buy car for cash these days?

As I understand it, it's very difficult if not impossible (due to money laundering regs)

[Clippy]

Thats why I intend to get the AA check thing but it is a convertible and impractical kinda car so not the type that is shifting right well just at this moment in time. I notice on Autotrade the picture has the higher price as well so it looks like he did try for a bit.

Will make double sure though thanks.

Actually, now, and the next few weeks, is exactly the time people start to think about buying a convertible.

The best time to buy one is in Winter but now we are heading into Spring and with the days getting longer, convertible sales will start to rise.

Something else you could do, is research the car model in more detail.

So, if it is a BMW, find some BMW forums and search through posts by current/past owners. It's a good way of finding out about common faults in a particular model as well as if it has been the subject of any manufacturer recalls. This way, you can ask the dealer if appropriate remedial work has been done and ask for proof.

[northernladuk]

You mention that the car you are interested in is already cheaper than it should be which would raise questions in my mind.

Dealers are not known for selling cars below market price without a reason so I would suggest you investigate this further.

Thats why I intend to get the AA check thing but it is a convertible and impractical kinda car so not the type that is shifting right well just at this moment in time. I notice on Autotrade the picture has the higher price as well so it looks like he did try for a bit.

Will make double sure though thanks.

[Cliphead]

Always worth looking for a deal at the beginning of the month, they don't know if they're gonna hit their target. End of the month they've sold enough and are complacent etc.

Or not, always a chance.

[EternalOptimist]

You can't buy car for cash these days?

you can, but it takes them by suprise a bit.

Top Tip NUKL - I discovered this by accident. Use the same dealer a couple of times on the run, build up a semi relationship, then when you tell him the car is only for a year before you churn it,
they throw in all sorts of goodies.

[Clippy]

Dealers always prefer customers who take out finance nowadays so the days of slapping your wad (of cash) on the table to impress are long gone.

Several months ago, there was a distinct shortage of decent second hand cars in the market due to people holding onto their cars for longer due to the recession. As such, second hand car values were up so dealers didn't need to discount. Not so sure about now but my guess is it is still the same.

Most dealers don't really give discounts unless the car has been sat there for a while.

You mention that the car you are interested in is already cheaper than it should be which would raise questions in my mind.

Dealers are not known for selling cars below market price without a reason so I would suggest you investigate this further.

[AtW]

You can't buy car for cash these days?

[Olly]

Yep, it's the opposite these days. They get commission on finance.

Also a lot of dealers won't take more than a certain % in cash as they're worried it's from dodgy sources and a form of laundering.

[norrahe]

the cash thing doesnt work any more. (well it hasnt worked for me the last few years)
they seem to be suprised when you dont want finance, and I think it puts them out a bit

sign of the times maybe

True, it doesn't, though sometimes they are willing to negotiate on finance terms.

I bought a car a couple of years back and they were offering 0% finance on other models except the one I wanted, If they are desperate for a sale, which they are they will give you terms.