New Car Dealer Request Bank Cheque in Advance

browser on 11/11/2021 - 13:12

Sales person called to inform car will arrive soon, and mentioned even with a bank cheque we will need to pay 3 days in advance, because of fake bank cheques.

Is this something new or some BS he dreamed up? We always hand over bank cheques on the day of delivery, never have any issues with other dealers.

To set the context, it's a "premium" car brand, not some dodgy used car lot. And there's a trade involved, so payment is just the change over minus deposit paid earlier.

Other payment options are:

  • Bank transfer, also requires advance payment.
  • Personal cheque, obviously in advance.
  • Credit card, up to a certain amount, then fees apply.
  • Cash, up to a certain amount.

We are in no rush, assuming they want the number to be in November, we are planning to go on the 29th with a bank cheque.

Automotive

Comments

  • AndyC1 on 11/11/2021 - 13:24
    +7

    How soon is "soon"? I would get a date on when it will arrive and ask how many day(s) they will take to process the car so you can physically pick it up.

    If you are in no rush then I would not pay until the dealer has the physical car and you can see it.

    • [Deactivated] on 11/11/2021 - 13:26

      Yup I believe typical contract allows you to delay the delivery for 1-2 weeks. Should be enough time to check the car and transfer the fund after.

    • browser on 11/11/2021 - 15:44

      Car is coming from interstate, he will call when it is physically at the dealership. We are not doubting the dates.

      We just find it strange that bank cheque is no longer treated the same way, especially when the change over is a smaller portion of the transaction.

  • Drakesy on 11/11/2021 - 13:28
    +3

    Dealer playing silly buggers

  • askme69 on 11/11/2021 - 13:29
    +3

    Tell him to go eff himself.
    He is questioning your integrity.

    What is the PREMIUM brand? Bentley, RR.

    As BMW/AUDI and MB sell a 1 series and an A class, so are no longer Premium, also most are not made in a Premuim Country.

    • [Deactivated] on 11/11/2021 - 15:26
      +5

      Are you doubting the 'tegrity of the US$150K Mercs built in AAAAALABAMA?

  • brad1-8tsi on 11/11/2021 - 13:32
    +2

    I bought a car last week.
    Paid $3k on my CC without fees and the $29.5k balance by direct deposit. Did the transfer in the afternoon and it was in their account within an hour.

    The main holdups were ringing my bank to organise a 15 minute window to transfer more than my maximum daily limit and convincing the car salesman that he should check their bank account.

    Much easier (and $10 cheaper) than going to my nearest branch for a corporate cheque (that's what they call it).

    • JimB on 11/11/2021 - 14:05
      -1

      I thought most banks have a $20k transfer limit

      • Seraphin7 on 11/11/2021 - 15:17
        +3

        You can almost always get a higher limit (even if temporary).

      • brad1-8tsi on 11/11/2021 - 15:22
        +4

        I thought most banks have a $20k transfer limit

        Indeed they do!

        I can set it at $20k through online banking. If I call them and answer a dozen questions or send an email through their secure messaging platform I can organise a 15 minute window to transfer a higher amount. I've done it a few times for house deposit, stamp duty(maybe? there were a lot of outflows when I bought my place) and share purchase plans.

        It's a really good service but I assume they do it because they don't have many branches.

        • JimB on 11/11/2021 - 15:33

          Never knew this.

          I may do this because I need to transfer more than $20k soon. Prefer one last transaction, rather than multiple transactions over a few days. Plus I rather not pay for over the counter assisted bank transfer.

          • brad1-8tsi on 11/11/2021 - 21:48
            +1

            @JimB: QUDOS Bank.

            Have been with them since 1989. Not the best interest rates but good service and I never feel ripped off

      • Zachary on 12/11/2021 - 09:24

        this is why you have over 20k cash in hand ready to pay for something like this…

    • ChrisLevo on 11/11/2021 - 15:34
      +1

      About the same with my Kia Seltos Sport+.

      $500 down on debit card when signing the contract and settled down for a 7-month wait for delivery.

      The dealer called the day before the car was ready, so I transferred half the balance that day and the rest via Osko while sitting at the dealer's showroom the next day while looking at my new car.
      The Finance person said that the money was in their account almost immediately so I just drove off with the car.

      Pretty easy.

      BankSA, FWIW.

  • godofpizza on 11/11/2021 - 13:43
    +1

    i had the same issue, i didn't want to front up the cost of a bank check as i had the money in the saving account.
    Initally was told i could play via etfpos, but on the day they didn't accept it or wouldn't allow me to pay in a number of 3k transcations.

    I ended up using their PC to transfer the funds, they provided an invoice for the car as a loan car until the money cleared ( the next Day). Once cleared, they send thru a new invoice with no outstanding balance.

  • pegaxs on 11/11/2021 - 13:56
    +3

    Was payment in advance stated on the contract? If not, tell them that's a them problem, not a you problem.

    They have your licensed details and your trade in, I'm pretty sure that the worst scam ever if you were trying to pull it.

    If they insist, just call them up and tell them that you will not continue with the sale on those terms.

    Don't pay anything until you have seen the vehicle in person. If anything, they are the ones pulling a scam. It's very very hard to get money back out if them if the car isn't right or there is an issue. You have the cash, you have what they want, not the other way around.

    • Nugs on 11/11/2021 - 14:13

      imagine the dealer going bankrupt whilst the cheque clears
      .

      • pegaxs on 11/11/2021 - 16:53
        +2

        Or, OP pays now, car comes in in 3 days time and it is missing features because of some bullshit MY change, or there is a slight colour variation, car was damaged in transit, etc etc… Try and get your money back out of them.

    • browser on 11/11/2021 - 15:47

      It was never explicitly stated "payment in advance", but the acceptable forms of payment effectively become payment in advance.

  • JimmyF on 11/11/2021 - 14:27

    We always hand over bank cheques on the day of delivery, never have any issues with other dealers.

    And how long ago was that though? Things have changed :(

    because of fake bank cheques

    Yes, these are a 'thing' now, so they want the chq to clear before you get the goods.

    We are in no rush, assuming they want the number to be in November, we are planning to go on the 29th with a bank cheque.

    If it was me, as you have pre pay regardless of the method it seems, I would get a bank cheque OR transfer 90% of the money owing before hand as required. Pay the balance on the day once the car 'checks' out.

  • Switchblade88 on 11/11/2021 - 14:36
    +3

    Cheques for a dealer??

    If they don't know how to check for an Osko transfer 20 seconds after you send it, they're pulling your leg. Turn up on the day to inspect, transfer the balance whilst they stand there, then send them to their finance manager to confirm. It's not hard.

    Sure, if it's a private sale with no recourse I'd stick with cash or cheque, but the dealer can learn to use a damn computer.

    • Mulga Bill on 11/11/2021 - 15:01

      There is a generally a max $30k OSKO transaction limit per day…maybe do it in $30k lots per day leading up to picking car up?

      Or for 100% payment go into your bank and do a RTGS on day of pickup (some banks need you to order them before lunch time for same day payment to Australian bank account), have a coffee and they should have their money within a few hours…prearrange a large cash withdrawal if you want to hold some back as security.

    • browser on 11/11/2021 - 15:37

      Does it always go through Osko? We can transfer some the day before and leave $30k on the the day.

      We are just not comfortable to pay the entire balance in advance.

      • Love a bargain on 12/11/2021 - 12:18

        You should check the limit with your banks - also bearing in mind that the limit is per person so say the limit is $30k, then you and your partner can transfer $60k in total on the day.

      • md333 on 12/11/2021 - 16:00

        I've had it not go through because the bank thinks it is a suspicious payment, so probably need to work out if that could happen and who you need to phone. My bank did phone me, but not until a couple of hours after I'd worked out an alternative payment method.

  • Hithere on 11/11/2021 - 15:01
    +2

    My new car purchase last year, except for the deposit, which was cash, was by bank cheque as requested by the stealership.

    I handed over the cheque and they handed over the car.

    • browser on 11/11/2021 - 15:24

      That's always been the case for us, hence I was wondering since when bank cheque is no longer good enough.

      • Hithere on 11/11/2021 - 16:17

        I've bought cars from many different stealerships for many years making a cash deposit and producing a bank cheque for the pickup payment and never had a salesperson query this form of payment.

        Maybe I've got an honest face (j/k) or something but the stealership has had plenty of time from receiving the deposit until I pick up the vehicle to check into my background if they wanted to to see if I can afford to pay the balance owing.

  • Mulga Bill on 11/11/2021 - 15:05
    -2

    Bank cheques can be cancelled, drivers license and bank transfer receipts can be faked. Nothing unusual about a car yard wanting clear funds in their account to take a car away…personally I would not sell anything any other way.

    • Eeples on 11/11/2021 - 16:57
      -2

      Do you really think I could pay for something with a bank cheque and then cancel it?

      Really?

      • Mulga Bill on 12/11/2021 - 09:08
        +1

        (I work for a bank) It is possible. Some banks wont cancel a bank check without possession of the original cheque but if you say you lost it (I have heard some people washing it in the washing machine - insert money laundering pun here) some allow it if you sign a form to indemnify them.

        • Eeples on 12/11/2021 - 11:07
          -4

          You work for a bank? Then what is the process? Maybe you should ask someone at work.

          You really think one could pay for something with a bank cheque, then tell the bank you lost it, and then get a refund?

          You don't think the bank will check with the person you paid?

          And you work for a bank. Right.

          • Mulga Bill on 12/11/2021 - 11:22
            +1

            @Eeples: lol for the negs. I have been in banking for 17 years from teller to branch manager and many things in-between, I think I know what I am talking about.

            I don't need to ask anyone as I already know what we do. Not sure if you think I am the OP?

            Yes they can pay and say they lost it and cancel it.

            no we don't check with the payee…how would we know the contact details of this person anyway?

            yes, you are right, I work for a bank

            • Eeples on 13/11/2021 - 10:27
              -2

              @Mulga Bill: Hilarious!

              Do you even know what a bank cheque is?

              The payee details are on the cheque!!!!!!!!!! (and the bank has a copy that is part of the clearing process…..)

              Do you think the bank would not contact the dealership? (to which the cheque was made out?… LOL)

              Either lying and/or ignorant.

              • Mulga Bill on 13/11/2021 - 13:03

                @Eeples: A bank cheque has a payee on it. Yes it may be the name of the car yard or is may be in the name of their family trust, or holding company etc. The bank does not have contact details for them, we may be able to google it, maybe not. Either way our customer is telling us not to pay them and among other things there is a privacy issue if we contacted them…at the end of the day bank cheques can be cancelled as lost/stolen and it is ignorant to argue otherwise…here is an example from ME bank (not affiliated) website…

                "If your bank cheque has been lost or stolen, get it touch to cancel it – send us a message using internet banking or call on 13 15 63. We’ll send out a Letter of Indemnity for you to fill out as part of the process of claiming your funds back."

    • Mulga Bill on 12/11/2021 - 09:09
      +1

      Bank Cheques can also be faked.

      • Eeples on 12/11/2021 - 11:07

        That's true. And that is of concern.

  • Seraphin7 on 11/11/2021 - 15:21
    +1

    To be fair, there are so many scams going around on just about every form of payment, I don't think I would be willing to accept anything without having "cash in the bank" these days regardless of whether I'm a "premium" car dealer or anyone else.

    As others have mentioned, they can't change terms on you mid-stream so you need to be clear on that point, but conceptually I have no problem with a business wanting cleared fund before releasing high value goods.

  • giu on 11/11/2021 - 15:42
    +3

    Ask him to give you the car 3 days in advance and then you pay him and see how he likes it.
    Like any transaction, he hands over the goods, you hand over the money.

    • Eeples on 11/11/2021 - 16:58

      Really? …like when buying a house?… you get the house before paying?

    • st1ng on 11/11/2021 - 19:32

      However, cheques are not money. They are a promise to pay from the bank, and have no value until cleared by the issuing bank. There are plenty of stories in the media about dodgy bank cheques. Even banks state "Bank Cheques should not be considered as good as cash" ( https://www.bendigobank.com.au/help/security/financial-crime… )

  • MS Paint on 11/11/2021 - 20:01
    +1

    Cancel contract.

    Purchase car from a non premium dealership.

    Pay with bank cheque on delivery day.

    Winning.

  • rektrading on 11/11/2021 - 23:26
    -1

    Why are people still using cheques?

    Everyone has a smartphone with cameras nowadays. Just print an QR code, scan, Tx and it's done.

    • Quantumcat on 12/11/2021 - 07:11
      +1

      A bank cheque isn't the same as a normal cheque.

      • rektrading on 12/11/2021 - 07:50
        -3

        Cheques in one form or another are 2000 years old.

        Humans have been to the moon and back and yet some of them still choose to use a payment system that is older than the 1st Christmas.

        👭, 🙏 get with the times and ditch the 👵 stuff.

        • Rel63 on 12/11/2021 - 09:30
          +2

          My sister spent 15yrs living/working in the US (only been back home 2yrs). She said that up till she left, to pay most bills you had to use a cheque..sorry check. Even a scheduled pmt for her rent arranged via the bank had the bank post(via physical mail) a cheque to her landlord. It is so archaic and stupid. They don't seem to know what elec banking is.

          • rektrading on 12/11/2021 - 09:39
            -1

            @Rel63: The US is the most backwater 👵 country in the world.

            There is no wonder so many millennials are ditching legacy investments and turning to to 21th technology and stores of value.

  • Hithere on 12/11/2021 - 08:25

    If it ain't broke don't fix it.

  • farknos on 12/11/2021 - 08:51

    Take Cash on the day, problem solved and it will wipe the smile off his face

  • figjamone on 12/11/2021 - 09:16
    +2

    I just sold a motorhome to an 80 year old gentleman. He organised with his bank to transfer the 90 per cent balance with a bank transfer on the day near $60000. I had the money in my bank acc within seconds we transfer the rego and cancelled my ownership at the same time via laptop. Great experience no worries about cheques bouncing ect.

    • Eeples on 12/11/2021 - 11:15

      I always bank transfer a test amount first. And then quiz the vendor if they received it.

  • OzHunterNSW on 12/11/2021 - 10:06

    Just do it

  • oscargamer on 12/11/2021 - 11:54
    +1

    Until you see the car in person, pay nothing more .

    If that means you have to wait an extra day or two to drive off in it, so be it .

  • Drumadd on 12/11/2021 - 13:14

    Cut the paper just set up B Pay or better still if you want to pay on the day, online banking direct bank transfer ……… and wait until you’ve actually inspected your new car. Nobody, with any sense, would supply a blank cheque.

  • [Deactivated] on 15/11/2021 - 00:59

    Only $60k… just TT it or netbank it.

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