Just suppose....

[602]

Hi,
So, if I walk into a caravan dealer looking to buy a brand new caravan, clutching (figuratively) a bundle of cash ...... what sort of discount should I expect off list price? Presumably I would get a bigger discount if I took it in accessories?
Specifically? I'm thinking Wednesday, but my wife isn't. We are both thinking the "bivie" end of the market, not a "country cottage on wheels".
602

 

[Surfer]

The salesman gets more commission if you buy on HP, and take out loan with Payment Protection Insurance, etc. Cash is no longer king!

 

[andre]

I agree with surfer, but with no part exchange and a straight deal you should be able to negotiate a good discount try a few dealers and if you do accept finance negotiate the interest rate aswell you will be surprised how much you can save.
kind regards

 

[forestgump]

most dealers would not take the cash if large amount it would have to be a cheque or draft ect. so the deal is what you see if you can get some goodies and saves you paying go for a awning water /waste ect.

 

[ProfJohnL]

Forests comment concerns me,

Cash (assuming it is not forged) is is the only legal tender in the UK. Any company offering an item for sale, and agrees to sell it to someone, cannot then refuse the deal if cash is offered.

Cheques and credit/debit cards, bankers drafts etc. are simply mechanisms for the transfer of funds, and as such are not legal tender in themselves.

 

[Mel]

A bit of comparative haggling may help. "Dealer X can do it for such and such and throw in an awning." Worth shopping/phoning around.
BTW what is the bivie end?
mel

 

[IanofMeon]

Under money laundering rules there will be a limit on how much cash can be used so the Profs reply is not technically correct

 

[forestgump]

thats true ian the last two vans i got i asked if they wanted the cash 13k i cuold get it out off the savings they said they carnt take that sort off cash on the premises it would have to be a draft ect or a bank credit. So that means that the above statement by me was true on the two times.

 

[forestgump]

the dealers will have there own company policeys with cash at large amounts

 

[Mel]

I could be wrong but perhaps when 602 said "cash" he mean't "not credit" "money straight out of his bank account"; rather than meaning an envelope full of used bank notes? Hence the word, figuratively.
mel

 

[forestgump]

a bundle of notes cash to me thats seems a lot of pound notes not a cheque or a loan .

 

[OmOnWeelz]

If you want a cash deal these days, just pay large sums with debit card. As good as cash to the dealer, the money is straight in their bank and no money laundering concerns!

 

[SteveW77]

It is not unknown for banks to refuse a large withdrawal by debit card.I know, because this happened when my wife tried to pay for her new car, this was after going in to the bank to inform them of the transaction before hand.

Steve W

 

[Dustydog]

We paid for our last caravan by debit card , ie cash straight from our bank to the dealers. Dealer handed us the phone and we spoke to the card company who verified the transaction with the usual what's your mother's maiden name etc.
Play the game and ask for the best price if you use the dealers finance arrangements. Then say you've changed your mind and wish to pay "cash".
I have to disagree with Forest and say Prof John is correct. Only cash carries the Bank of England promise to pay the bearer. Debit and credit cards can have the transaction withdrawn well into the future by the card company so they cannot be as safe and guaranteed as a wad of cash. The same applies to the Pay Pal scheme . Not as safe as many believe.
Providing you have the funds and can prove to the bank you are the legitimate account holder there is no legal reason at all for the bank not to give you your savings in hard cash.

 

[602]

Hi

Thanks for the many replies. No, I wouldn't expect to walk in with a bag of money. In theory, we have several credit cards that are each able to cover the sum we have in mind, but I doubt that the dealer would want to pay the commission involved. And it wouldn't surprise me if the Card Company suddenly threw an on-the-spot wobbly if a large sum was involved. My wife keeps our bank account on the brink, but we can move funds from saving to cheque account with a phone call, then do a Debit Card payment.

My wife bought her new car on HP .... Nil deposit, 0% interest, 5 years to pay. Money was in the bank, but that offer meant there was no haggling, though I suppose we could have got a better price for cash. Comforting to have a buffer in the bank. Also, HP does have a few safety features. I can't see a caravan dealer offering the same deal, but there would seem to be a haggle factor if he did.

We know what we want to pay, (£10,000) but there are only a couple of new caravans below that price, only one of which we would want. But then we would want some extras .... like a mover. A 10% discount would be very desirable. Alternatively, an extra 10% - 15% on our budget would bring more vans within our reach, which suggests that 10% - 15% off the list price would also bring them into reach. It would also bring the number of potential dealers a lot closer. But is 10% a realistic target? This time last year I saw adverts for 15% end-of-season discounts, but nothing like that this year.

We care reluctant to spend a lot of money on a second-hand van. If we went that direction, it would cost a lot less. But then, a prowl through Ebay brings up lots of vans that are nearly 20 years old, and still lots of money.

Whatever, my wife says she doesn't feel like driving up North tomorrow, so it will be next week .

602

 

[OmOnWeelz]

We've paid over £30K on a debit card to car dealer. After the pin was entered the dealer had to call our bank and I had to speak to them. As soon as the security checks were done there was no problem. Debit cards should be no problem.

 

[ProfJohnL]

Further to Forests and Leons comments,

Regardless of company policies or banking regulations, the only true and valid currency is cash.

Large sums may be frowned on for possibly having criminal intentions, but there have been retailers that have been successfully sued for refusing to take cash.

Cash is not always get the best deal, nor necessarily the most convenient method of payment that is a matter for individual companies policies.

 

[OmOnWeelz]

Large sums may be frowned on for possibly having criminal intentions, but there have been retailers that have been successfully sued for refusing to take cash.

A pair of drug dealers spent some of their ill gotten gains in a the AFN Porsche Dealers in Guildford several years ago. That case helped bring about the current money laundering laws.
It's not a case that dealers "may" frown uppon cash. A car or caravan dealer or a jeweler or any business being offfered over £10 K in cash is duty bound to the law to be suspicious and check out the validity of large cash sums. Dealers selling large value items should have no problem taking a debit card, If they do then that is probably a fault with that seller not the banking system!

 

[TonyG]

Sorry Prof .. we tried to pay £22k cash for our new Swift 645, the dealer refused to accept it due to money laundering laws. the maximum they would accept in cash is 11,000 euro's

 

[NickinFrance]

It aslo depends upon the debit card, we have a VISA Electron, (the only type of card that can be issued to a non-UK resident on a UK bank account) & that has a hard transaction limit of £4,000, the dealer had to split our caravan purchase into 3 transactions to get it through.

 

[OmOnWeelz]

Over £10 k and the bank can ask for proof of the legitimacy of the money and the business taking such sums need sto be able to prove to HMRC that the money came via legit sources. A simple debit card provides a money trail.

 

[Dustydog]

Sorry Prof .. we tried to pay £22k cash for our new Swift 645, the dealer refused to accept it due to money laundering laws. the maximum they would accept in cash is 11,000 euro's

Tony
Perhaps your dealer could explain which part of the " money laundering laws" he referred to. In the UK to the best of my knowledge there is no Law that says "cash " cannot be accepted. I can understand a dealer's unwillingness to accept cash at the weekend when the banks are shut and the amount involved may exceed his insurance safe limit. Most banks seem to abandoned the old night safes.

 

[TonyG]

Dustydog .. don't know and it certainly was not a weekend. they would only accept £10k in cash and i had to pay with debit card for the rest. and then face a load of questions when i tried to deposit the rest in my bank account.

 

[OmOnWeelz]

Perhaps your dealer could explain which part of the " money laundering laws" he referred to. In the UK to the best of my knowledge there is no Law that says "cash " cannot be accepted. I can understand a dealer's unwillingness to accept cash at the weekend when the banks are shut and the amount involved may exceed his insurance safe limit. Most banks seem to abandoned the old night safes.

Who really cares, by the laws of this land a business can be asked to supply proof that cash comes from a legitimate source and a bank can ask the same for its own protection. What business wants to store thousands of pounds of cash or send staff waltzing off to the bank with bundles of cash. Faced with answering questions from HRMC or a bank re large cash deposits compared to taking some other form of payment such as a debit card, bank transfer or bankers draft most sensible business people will take the easy option.
It's more likely that businesses are protecting themselves and taking the easier less trouble option. Live with it

Unless you store cash under the floor boards why would you want to carry 10K plus cash around in your pockets and risk being relieved of it?
You are still supposed to be able to write a legal acccetable cheque on anything providing you give the correct details and sign it, but who wants a scrap of paper or lump of drift wood to present to a bank. Lots of places no longer accept regular cheques, we move on, just like it or lump it

Paying with your phone works pretty well, as long as you get a good deal why worry about cash!

 

[Dustydog]

Dustydog .. don't know and it certainly was not a weekend. they would only accept £10k in cash and i had to pay with debit card for the rest. and then face a load of questions when i tried to deposit the rest in my bank account.

Hi Tony
Technically they were wrong. See below from The Bamk of England / Royal Mint.
Legal Tender Guidelines

Legal tender has a very narrow and technical meaning in the settlement of debts. It means that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded.
The amounts for legal tender are stated below.
BANK OF ENGLAND NOTES:
In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.COINS:
Coins are legal tender throughout the United Kingdom for the following amount:
£5 (Crown) - for any amount
£2 - for any amount
£1 - for any amount

Prof John was spot on.