On 24/01/09 we attended car supermarket, name removed to look at some cars. Upon deciding on a vehicle we sat down with a sales rep. It was made clear to the advisor we did not want the vehicle until March 09 when the new registration is issued. The dealer told us that there was no difference between a 58 and 09 but said we could order a 09 plate. We agreed to purchase the vehicle and collect in March. There are 52 of the same vehicle currently in stock.
Today at 0854am my mum received whilst scarping the ice from the car a text from the same sales advisor on her mobile phone arrived saying this is****** at car supermarket we need the money ASAP for the car. The sum outstanding was quoted in the text and is around £10,000. Given the current financial situation I do not think it was a wise idea sending money before collecting the car. None of the documentation states that payment must be made early and the text message sent seems to suggest there is some kind of cash flow problem. My mum spoke to the advisor and he stated he was ?under pressure from management?
I am concerned that if the money is paid early and car supermarketwere to go into administration my mum would have no protection. I wonder why car supermarket are so desperate for the money as the car is not due to be picked up until March. Nothing on the paperwork suggests early payment must be made, only on collection.
Any comments on this gratefully appreciated. At the moment just a £300 deposit has been put down
Edited by PoloGirl on 04/02/2009 at 18:41
|
It sounds like its desperate and if they knew they are going bust it then becomes fraud (e.g they know they will be bust before they can give you the car). In reality it is probably just a cash flow problem either way need to demand your deposit back or payment on collection only.
Edited by PoloGirl on 04/02/2009 at 18:38
|
In 2000 I bought from the same car supermarket that was originally named and I was very satisfied with the experience. My car was already registered so waiting a couple of months for the new reg would have made no difference. I'm not sure if they sell unregistered cars, though this post suggests that they do.
They have to rely on a fast turnover of their stock if they are to make a profit. If vehicles sit at their premises for a long time then interest payments on the cost of that vehicle will wipe out their profits.
I don't see any evidence that they are going out of business, though anything might happen in the current economic climate. I think that this situation needs to be clarified with the car supermarket. I suspect the salesman offered something that his employer can't really provide.
Edited by PoloGirl on 04/02/2009 at 18:40
|
In the current economic climate, I wouldn't leave a deposit with any business , no matter what it's size.I'd be happy to sign an order and a contract tying me to the purchase and promising full payment on date of delivery but thats all.
Edited by PoloGirl on 04/02/2009 at 18:40
|
|
Good point from Mr X - just to add to it, thought paying deposit by credit card would protect you as well (though garage may refuse because of extra cost to them)?
Edited by PoloGirl on 04/02/2009 at 18:40
|
i would imagine its something to do with the reps commision.
Could be something silly like hes leaving the company and if the car isnt paid for before goes he doesnt get paid for it.
try bypassing him and speak to management or their accounts department. But absolutely do not hand over any money until the day you pick the car up!
|
|
But get possession first, before handing over any dosh!
|
|
I think ablandy has a point. I'd not pay for a motor in advance, though.
|
|
So what if the salesman is under pressure or whatever he reckons. Do not hand anymore money over to them until you are due to pick up the new car. £10,000 is a lot of cash to lose if they do go belly up and in the current climate I wouldn't trust any motor dealer not to take your money and 'do you over'.
|
|
|
|
In all probability the salesman was given a printout of all current deals by his boss / accounts dept and was just told to ring all prospects and see if he can get some money in ? Even if 1 agrees , that's £10k less they have to borrow ?
If the car was / is ordered in as opposed to being in stock, they may have to front up the £10 k cost of the car just to clear a £300 profit 6 weeks later , so if I was in charge I'd be doing the same.
But the advice given here is sound , don't pay any more until you have possession of the car and documents.
I sold a 2nd hand car for £21k in 2001 and was amazed the buyer just handed me a draft for it - didn't do no HPI or any other checks against it . I asked him if he made any checks and he just said ' No, I trust you ' , which was naive , even though the car was mine to sell and free of lien, because we'd only just met and he didn't know me - I could have been the biggest crook !! I picked him up at King's Cross station with the car and we did the deal at a coffee shop, and he drove away !!
|
'If the car was / is ordered in as opposed to being in stock, they may have to front up the £10 k cost of the car just to clear a £300 profit 6 weeks later , so if I was in charge I'd be doing the same'
Thats business. If they can't deal with it then they should think about doing some thing else for a living.
|
Sending a text to make this request?
What a sloppy, ill-mannered and generally uncouth way of doing business! I'd walk!
|
|
I agree with zm wholeheartedly. To send £10,000 in response to a text message would be lunacy.
|
having several times had normal main dealers try to register a car for handover before agreed i can only agree do not pay until handover
having the money in your bank not theirs is your main leverage if they try to mess around on terms and conditions of the deal agreed
worst case of this i wrote the dealers MD threatening to
i) sue for value difference between car delivered when they wanted it registered and car registered when i wanted (the original agreed delivery date)
ii) set up a website called thenameofthedealer-isrubbish.com
he called back the same day completely in complete agreement with me and upset with his salesmen
not had similar issue with car supermarkets but could understand similar issues maybe more common
|
ii) set up a website called thenameofthedealer-isrubbish.com <<
Been done - was a riot!
8< SNIP! must've spent 10s of thousands shutting it down.
Edited by Dynamic Dave on 05/02/2009 at 00:28
|
|
|
|
that's right - they are in business and are trying to deal with it by contacting the clients and asking for money - the worse that can happen is they're told ' no ' which is what they're settling for anyway
The OP didn't tell us ,perhaps they tried to call initially, no answer / voicemail, so the salesman showed initiative by texting, so everyone are telling him ' to walk ' .
Perhaps those nervous people can tell us : Which business doesn't ' need the money asap ? '
If the deposit was paid by card as it should have been, then they are covered anyway
|
I can't believe they sent a text and didn't bother to actually phone Mum. What terrible business acumen.
I would tell the car supplier to get censored.
|
|
|
|
|
|
Whenever I've ordered a new car (although admittedly I've never bought one from stock) I've never paid more than a nominal deposit before I've collected the car. The deposit has always been less than £1000 ~ usually an amount that left a round number of thousands outstanding, but that was only a whim of mine.
I think the car supermarket can reasonably expect you to pay a nominal deposit, as evidence of good faith, to secure a specific car. £300 sounds perfectly adequate. Stick to your guns on all counts, and don't hand over any more money until the final transaction on the day you collect the car, and preferably not before you've inspected the car for damage or deterioration. Expect to see the car keys and documentation on the salesman's desk before you finalise the transaction.
I think a text message is a most unbusinesslike method of communication, but there again I'm old fashioned as most of you will have guessed already!
Edited by L'escargot on 05/02/2009 at 07:09
|
|
I've never paid more than £50 or been asked to.
|
|
|
'pay a nominal deposit, as evidence of good faith'
Have yet to hear of anybody getting their money back when a company goes pop. Good faith should work both ways but thanks to the bankruptcy laws in the UK, its tax man and banks first, customers last.
|
|
not motoring, but horribly relevant ... couple of months ago well known functions venue on Thames took full final payment fm friends for their daughter's wedding reception. Family handed over £12,500, company having insisted they wouldn't take card payment - cash or cheque only. Yes, that should have raised alarm bells - and yes, they went bust soon after.
|
|
|
'pay a nominal deposit as evidence of good faith'
Oh ye of little faith!
;-)
|
My last new car (just coming up for its first service) I paid a deposit by credit card, and payment was by bankers draft - when I collected the car. I did let them have sight and make a photo copy a day or two earlier for them to check, but held onto the draft until the changeover.
While I think hanging on for a month to get a new plate is silly, as it only really make a difference to short term ownership, if the dealer agreed, tough on them. Standard trading terms ought to be clear on the deposit form.
|
|
|
|
...but thanks to the bankruptcy laws in the UK its tax man and banks first customers last.
Not any more, as far as the taxman is concerned - they got rid of that in '03.
Only reason the banks still tend to be first in the queue is because they have security.
|
Get the car reg 1st March, pay now.
Take delivery now on trade plates, wait till 1st M arch - drive out your driveway
Ask for £250 off for an inventive solution.
|
|
That would work FB, a few years ago it happened to SWMBO, Her new car was delivered 3 days before the "new" registration date on condition that it was not moved off our drive until the registration date. That was in the days when dealers were too busy to deliver all cars on new registration day.
|
Isn't there a punitive new car showroom tax coming in on March 1st?
|
|
|
|
|
|
