How to pay for your car
Monday 17 January 2011
You’re happy with the car and the deal suits you, so it’s time to pay. We take you through the options.
• Paying cash means you’ll be able to take the car straight away
• There are obvious risks with carrying a large sum of money
• Paying a dealer in cash may put you in a stronger position as they won’t have to pay credit card processing fees
Paying by personal or bank cheque has traditionally been a preferred method. It’s quick and easy, but not without its problems
• Carrying a cheque is safe as they can only be paid in by the recipient
• Dealers won’t necessarily let you take the car until the cheque has cleared in their bank account, meaning you’ll need to arrange collection at a later date
• Due to the amount of forgeries, building society cheques or bank drafts are no longer considered as good as cash, so you’ll have to wait for the money to clear
One of the safest ways to pay is by electronic transfer which moves money directly between bank accounts.
There are several types of electronic transfer process, and not all banks and building societies use them all, so speak to your bank to find out which is the most appropriate.