OT buying a car - different from the old days?

Yes. Trade ins are worthless and more hassle than they're worth so go to the local auctions.

THey prefer you to have finance because they get a comission for selling it.

Main dealer, eh?

Trade in: They'll have a string of smaller dealers they'll just phone up so any trade in will go straight out. IME it'll be these that set the trade in price too, not e.g. Glass' Guide so after phoning around for the best price (hopefully lol) the value of the trade in will be related to what the smaller dealers will pay for it.

Cash only: More expensive for the dealer as they get commission on the finance they sell you.

Did you realise that a dealer will not actually accept cash any more? Money laundering regulations prohibit large amounts in one go !!

Did you get into gap insurance?

How about all the extra warranties and servicing?

I agree the old days of wafting the smell of notes at the salesman used to be fun, but it isn't like that any more.

An older friend of mine has taken me along as moral support on his last two new car purchases and it was an eye opener to me.

Mrcheerful

Ah didn't know that. Times have certainly changed.

mm - don't know what that is either... :-)

As a follow-up then - say I buy a car on ebay (I do know it's a risky business - but would be nice to know), what the best way to pay for it? Paypal is pretty secure I think, but a bit expensive. Cash is out so maybe a banker's draft? There's always a good 'ol cheque I suppose but who would take one of those these days.

Aye similar thing for me too just lately. The sales "executives" talk like machines :-)

They can, but they have to fill in the paperwork to check your ID.

You can still pay private sellers cash, but not big dealers (at least not the last one I was in) they point blank refuse cash over (from memory) 8000, Not even the opportunity if you prove your identity.

Making a bank transfer is fairly secure. Most people won't take paypal for large amounts as the commission charged is so high.

Some people pay for large items with bankers drafts still, but the receiver would want to go with you to the bank to see it issued. (forged bankers drafts have been around for years)

I bought a 7000 car from ebay and just gave the guy the cash when he delivered it, but I have heard horror stories of gangs turning up, knowing you have the cash in the place and demanding it with menaces, same if you go to buy with cash.

Mrcheerful

It's not secure for the seller though.

Most people who know anything about Paypal will refuse to accept it for any item that can't be posted as it's too simple for a buyer to fraudulently claim their money back.

Please tell us you had some way of verifying his identity and address. Otherwise, that sounds even dodgier than buying a car from someone in a pub carpark.

Is it likely that you should be able to get a good deal for cash if the dealer is advertising interest free finance?

It was all ok, I did a hpi check and the address got confirmed on uk info. that was 4 years ago. Mind you I did have misgivings when I saw a different number plate on the front (private plate he had forgotten to change)