Purchasing a car within the EU - methods of payment?

[m33ufo]

I'm currently giving some thought to purchasing my next car from within mainland Europe, most likely France, Germany or Italy. I'm a private purchaser and the sum of money likely to be in the order of 100,000 euro.

My question is, what's the most economic way to pay in terms of achieving the best exchange against the euro? My bank account is within the UK (Lloyds Bank). Any advice members can give would be most welcome. The purchase is likely to be via a dealer but not ruling out a private purchase.

[anothernameitist]

At that price you'll get a better than tourist rate from your bank if you pay into the "foreign" bank.

There are various Foreign Exchnace companies online too that may be able to exchange your money and pay it into a bank.

The paying it into a bank, as it won't be your "foreign" account is the part I'm not 100% sure about.

[rdjohn]

If I want to pay an exact amount into someone's bank account, I use HIFX. The rate offered will be fairly competetive, especially on the amount you are thinking of. Choosing a time when the rate is a little better, like now, is likely to be more significant. You will need to set up your account well in advance, you cannot just sign-up and trade today. For the last few months the days before the MPC meeting has generally been best, but that may change as uncertainty on the outcome of the UK elections is likey to be a negative influence until May.

You can track the progress of the payment all the way, and it is always fast.

Good luck with your purchase.

[m33ufo]

Thanks guys, that's very interesting.

I'll certainly look at setting up a HIFX account. Unfortunately I'm not quite in a position to purchase - even if I'd found the car! Thought I'd research it first a little. Should come together over the next couple of months.