Stealer Credit Card Charge...Really?

[Johnersh]

So I go to collect my car today from the dealer. We discuss beforehand insurance etc etc to ensure eveything is set up. He asks for my card, I hand it over, then... "Oh i'm sorry that's a 2.5% charge on a credit card"

Where did that come from? I point out that now is really not the time for him to be mentioning this - we've had 13 weeks to get to this point. I get some mumbled response about him having mentioned it before - I really don't think so....

Does he routinely think we can all just whack the balance of the purchase price on a debit card? I think not. Even my bank were bemused by that level of charge; that's saying something! So, as if i'm not spending enough on a shiny new car (which, I might add, was supplied with just UNDER the half tank I was promised - although I let that slide) i'm expected to fork out £150 for nothing, just because the main stealer would rather I used debit card.

My beef is not the charge itself (although it is outrageous and i've never been expected to pay such charges at any other garage) it's the fact I was ambushed with it. In the end, I refused to pay it and let him sit there for 40 mins whilst my bank sorted an overdraft facility (fee free).

P1ssed off, wasted time etc on what should have been the good bit - i.e. collecting after weeks of waiting! Well done, Mr Main Stealer Man, because I am off to have my car serviced anywhere but at your garage in future....

Ok, so now my rant is over, but watch out for this type of rubbish - I hate sharp practice...

 

[Mr Cellotape]

You should of rejected the car onthe basis of hidden charges.

The dealer would then of been stuck with the car, I'm sure they would of then dropped the charge.

 

[andycupra]

You know the dealer wont get all the money if you pay by credit card dont you?

The dealer should make this clear up front to avoid any confusion, but given all the haggling that im sure went on im surprised you did not see the credit card being an issue.

You can pay it on a debit if you warn the bank i believe.

Usually when you start haggling they clarify how you will pay and so factor in charges and would offer a different price on a credit card purchase than a cash or debit card purchase.
Therefore other places may not charge for a credit card, but in stead offer a less competitive price...
Ive been offered a lower price if i take credit for example, as they get some sort of comission.

 

[rf860]

Best way is just to refuse to pay those sort of charges. They want your business so should be prepared to cooperate. It's the same idea with the courtesy cars, they try to charge you for them, usually about £15, i just refuse and they drop the charge. Rediculous that they think they can charge you for a courtesy car when your car is in for warranty work imo, plus your usually given a bog basic heap with the fuel light on.

 

[Johnersh]

You know the dealer wont get all the money if you pay by credit card dont you?

Not quite - he gets the cash, but will obviously have to pay transaction fees. I also know that a number of businesses and garages accept that as a standard business overhead, rather than adopt the "easyjet model."

I think my anger is that this set up was not explained clearly and, had my credit not been reasonably good (overdraft by phone), the cost would have been virtually unavoidable. I suspect (but don't know) that the cost charged to me would have been rather greater than the cost levied upon the dealer by the card company.

It should not be for the consumer to try and predict whether credit card charges may or may not be levied - this should be discussed openly with all the other routine stuff.

I note the point not on a "name and shame" basis - i've not named the dealer - but to ensure others are aware and because these types of issues really do sour the garage/customer relationship. I probably won't be back.

 

[Mr Cellotape]

It should not be for the consumer to try and predict whether credit card charges may or may not be levied - this should be discussed openly with all the other routine stuff.
.

Agreed, i.e. it was a hidden charge, iirc not subject to the terms of any contract you had with the garage, meaning any deposit you had left with them should be fully returnable as they had broken the Contract.

Most reputable garages discuss how you are going to pay in advance of ordering the car.

 

[andycupra]

I do agree that it should be made clear up front that credit card purchases will incure a fee.
I also accept that many retailers absorb the credit card charges.

In my experience its one of the first things a dealer will ask you when you start haggling, - how will you be paying for the car.

However there is a massive difference in mark up and you cant compare buying a new car to buying a new shirt or a machanic who is charging £100 an hour..

A car could be a £20,000 purchase, 1.5% of which is £300... I wont pretend that i know how much seat dealers make on new cars and anyhow this depends on offers and haggling, but a competitive deal probbly means a few hundred pounds for cars £15-£20k from makers such as seat.
It could be that a dealer is making 4-5% of purchase price and they then lose 1.5% through credit card charges then thats a massive 30% of the mark up lost!
Then take into accout dealers have overhead, - business charges, labour, building, insurance and so on.. so a £500 profit on a car then becomes a £250 profit... they could actually be making a loss if they have to pay fees.

Flip it the other way, would it be unfair to charge extra assuming you are going to use a credit card but find you pay by another means? Surely you want a competitive price? If you were to pay £300 to cover charges that didnt exist because you organised finance wouldnt you feel a bit ripped off?

PS, i have actually come across a fair few garages (As in mechanics) that charge extra for credit card purchases. Ive even seen this a few times in clothers shops.
Amex (american express) i think charges a higher charge and if you have ever had one you will find many many places dont except theses as a result!
This is an interesting points as i know my local Tesco petrol stations accept amex... which is good, but looking at it from another point of view why should everybody else thats paying cash or debit card etc pay the same? are we effectively subsidising others?

 

[Rog.]

Tesco will be paying such tiny transaction fees you'd never notice it if it was removed from the cost of their goods/fuel/whatever.

As far as I'm concerned, transaction fees are just one of the costs of doing business, as a retailer you factor them into the selling price. And if you don't, you should make it VERY clear from the outset, AND offer sensible alternatives for those who don't want to get stung by them (yes, I'm looking at you, RyanAir, with your pre-paid card so called 'option'...).

AmEx do charge higher fees, but used to get very upset with retailers who displayed the logo then tried to persuade customers to use some other card instead.

 

[Johnersh]

Essentially it was the way it was handled, not the issue of how a business deals with its overheads. Let's face it we're talking money, so remind people of your card charges 3 days before collection if you want to charge one in addition.

It is the "ambush" element that upsets people and, incidentally, why Which? have made a complaint on behalf of consumers to the OFT to force them to investigate the airlines, who routinely bolt on charges at the very end. If this all means more up front acknowledgement (from all businesses) of when the price is the price or what additional charges may apply, that can only be a good thing.

Time to go and enjoy the new car now!

 

[andycupra]

i agree thats it wasnt on to find out on the day.
Im just surprised as how you are going to pay is usually the first thing they ask.