Credit cards. Do you,don't you

[David Ayers 171]

So since the changes in January I've only been taking deposits up to £200 on credit cards.

 

Yesterday was the first time I couldn't deal a customer because he had no other means of paying. Admittedly it would only cost me £50 in fees, but over the course of a year they all add up.

 

As we can't pass on the cost or do admin fees just for credit cards I was wondering how everyone else was approaching it. I know some dealers won't touch credit cards because of section 75 which is fair enough. 

 

Do you fund other peoples financial lifestyle choices and swallow the fees or just lose sales. Also at what point do those of you who don't take cards qualify how they intend to pay?

[Arfur Dealy 823]

If they can’t pay by transfer or cash I don’t do business with them. 

[SC Derby 259]

Tell them to transfer the credit card balance to their current accounts and then pay BACS.

Then they can pay the associated fees that we cannot afford to over the year.

[AutoJacob 34]

Just charge an admin fee for both credit and debit cards, I find that people don't care and just pay it. I charge £30 per £1000.

Hope that helps

[SC Derby 259]

Just now, AutoJacob said:

Just charge an admin fee for both credit and debit cards, I find that people don't care and just pay it. I charge £30 per £1000.

Hope that helps

they might not care but you are breaking the law.

[AutoJacob 34]

3 minutes ago, SC Derby said:

they might not care but you are breaking the law.

Even though I am charging an admin fee for both credit/debit cards?

[David Ayers 171]

SC Derby

Didn't realise you could do this. Thank you

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Edited March 23, 2018 by David Ayers

[NOACROSS 414]

Qualify them before striking the deal as to how are they going to pay.  Very, very few will have no other means of paying.  If you can't get alternative payment type out of them, or sell them finance (should be cheaper than their credit card deal) or do as suggested above, then I will reluctantly take it AT THE ASKING PRICE.  It'll only be once in a blue moon so I'd rather sell the car than lose it. 

[Mark101 536]

Back in the day, I was one of the first people to receive a chip and pin card reader at my garage.  All my fellow traders thought I was mad but it transformed my sale conversions and now they all do it.

The idea was driven out of how many times I had heard "I'm just popping to the cash point to get a deposit" never to be seen again - I never knew whether they had no intention of completing or whether they walked passed the many other forecourts en route to the bank and spotted something more to their liking.  At least this way, I knew whether they were serious or not because I could be the "cash point."

It also meant that I didn't have to discount so much because people are generally less conscious about the money when it is not "real"

I always charged 2.5% extra for credit cards but didn't know I was breaking the law.

Wish I had one now but trading from home doesn't make it easy - I think you can use a third party like PayPal but haven't investigated fully.

[SC Derby 259]

30 minutes ago, AutoJacob said:

Even though I am charging an admin fee for both credit/debit cards?

you are not allowed to charge any fees for any cards now, since middle of of January.

[Arfur Dealy 823]

Everyone has internet banking and transfers are free, we all have banking on our phones. Cards machines are an unnecessary cost. Jmho

[MSP Motors 39]

Admin fees are allowed, you just can't target one means of payment.....ie charge for a credit card.

[Arfur Dealy 823]

Btw, there’s nothing to stop you increasing the price of the car to cover the costs, you just aren’t allowed to charge a separate cc fee me thinks   

[SC Derby 259]

5 minutes ago, MSP Motors said:

Admin fees are allowed, you just can't target one means of payment.....ie charge for a credit card.

Exactly. Admin fees across the board or raise price of cars accordingly.

[Autolink100 34]

We have a strict policy of not accepting them with no exceptions. Not because of fees but due to section 75. When I checked last months statement I find that my salesman has managed to take 7 deposits on a credit card and 6 on a debit. Not Happy!!

[Mark101 536]

31 minutes ago, Autolink100 said:

We have a strict policy of not accepting them with no exceptions. Not because of fees but due to section 75. When I checked last months statement I find that my salesman has managed to take 7 deposits on a credit card and 6 on a debit. Not Happy!!

I would be - he's sold 13 cars

[It's me 615]

5 minutes ago, Mark101 said:

I would be - he's sold 13 cars

if the deposit on the card was more than £100 then i too would be very unhappy

[justina3 518]

8 minutes ago, Mark101 said:

I would be - he's sold 13 cars

I was thinking that.

[Earunder 69]

We don't charge any fees (Selling £3k-£30k cars).  It's illegal.   I don't understand the admin fee rubbish?  Whenever I see admin fee on any invoices I feel it's a con.  Because it is.  If you can't do without the £50-£200 charges then your margins are not setup correctly or your haggling your prices too low.

On a side note:  Do you guys still get charged £120 + VAT from Zuto or CF247?

[Autolink100 34]

3 hours ago, s and b said:

if the deposit on the card was more than £100 then i too would be very unhappy

The deposits were indeed more than £100. I feel like my neck is on the chopping block. I could live with the odd one slipping through the net very occasionally but 7 in one month, FFS. He just needs to slow down and check the cards properly before he sticks them in the bloody machine.

[andymc1973 199]

5 hours ago, Mark101 said:

Back in the day, I was one of the first people to receive a chip and pin card reader at my garage.  All my fellow traders thought I was mad but it transformed my sale conversions and now they all do it.

The idea was driven out of how many times I had heard "I'm just popping to the cash point to get a deposit" never to be seen again - I never knew whether they had no intention of completing or whether they walked passed the many other forecourts en route to the bank and spotted something more to their liking.  At least this way, I knew whether they were serious or not because I could be the "cash point."

It also meant that I didn't have to discount so much because people are generally less conscious about the money when it is not "real"

I always charged 2.5% extra for credit cards but didn't know I was breaking the law.

Wish I had one now but trading from home doesn't make it easy - I think you can use a third party like PayPal but haven't investigated fully.

Izettle are good but not cheap 1.5%

[Mark101 536]

34 minutes ago, andymc1973 said:

Izettle are good but not cheap 1.5%

Thanks Andy- I shall take a look.

Still better than losing a sale and I have looked at the article referred to herein and I don't see an issue with section 75, am I missing something.

My understanding is as car retailers, we are liable under the Consumer Goods Act for a period of time and Section 75 means the Lender becomes Jointly liable - surely this is a ggod thing, what am I failing to understand?

[BHM 994]

7 hours ago, Arfur Dealy said:

Everyone has internet banking and transfers are free, we all have banking on our phones. Cards machines are an unnecessary cost. Jmho

Cash is king. Potless credit card punters can sling their hook, there are still plenty of punters out there with “cash on hip”.

An old fashioned view but they haven’t made cash undesirable - yet! Although that is the eventual aim of governments.

[Ek cars 17]

7 hours ago, Autolink100 said:

We have a strict policy of not accepting them with no exceptions. Not because of fees but due to section 75. When I checked last months statement I find that my salesman has managed to take 7 deposits on a credit card and 6 on a debit. Not Happy!!

Bet you don't sack him !

[Mark101 536]

8 hours ago, BHM said:

Cash is king. Potless credit card punters can sling their hook, there are still plenty of punters out there with “cash on hip”.

An old fashioned view but they haven’t made cash undesirable - yet! Although that is the eventual aim of governments.

I try not to take any cash at all - it’s just another job for me to go to town, find a parking space and queue in the bank - Direct Bank transfer or CHAPS for me until I decide about a chip n pin device but cash is my least favourite - that’s for beer tokens only