Deposit on new car needed before old car is sold
Discussion
I'm in the process of buying a new car and feel like I've ended up in a bit of a financial limbo, and seeking a bit of advice & experience.
I'm buying a car in a few weeks with the plan to collect on the Monday. I'm selling my current car on the Friday before, to a different dealer, and the money I get for it will be the deposit on the new car.
What seemed simple has been complicated (at least I think) by the new dealer stating they need the deposit a day before collection, not on the actual day. So I would need to transfer the deposit the same day I sell my old car due to the weekend.
As far as I can work out, there's no way I could get the cleared funds across before the end of the day Friday to be able to collect on the Monday, surely?
So I would need a very short-term loan to be able to pay the deposit before the sale of my old car clears, or push collecting the new car back a few days - and potentially being without a car for a bit due to this faff.
Am I missing something? Have other people been in similar situations? I could draw some money from savings but it wouldn't be enough to cover the whole deposit. I would have part-exchanged but I'd get a couple of thousand less for my car than the sale price I've been offered. Maybe that's the trade-off for choosing to sell separately?
I'm buying a car in a few weeks with the plan to collect on the Monday. I'm selling my current car on the Friday before, to a different dealer, and the money I get for it will be the deposit on the new car.
What seemed simple has been complicated (at least I think) by the new dealer stating they need the deposit a day before collection, not on the actual day. So I would need to transfer the deposit the same day I sell my old car due to the weekend.
As far as I can work out, there's no way I could get the cleared funds across before the end of the day Friday to be able to collect on the Monday, surely?
So I would need a very short-term loan to be able to pay the deposit before the sale of my old car clears, or push collecting the new car back a few days - and potentially being without a car for a bit due to this faff.
Am I missing something? Have other people been in similar situations? I could draw some money from savings but it wouldn't be enough to cover the whole deposit. I would have part-exchanged but I'd get a couple of thousand less for my car than the sale price I've been offered. Maybe that's the trade-off for choosing to sell separately?
Ask the Friday dealer to make the payment directly to the Monday dealer? I'd assume that between two dealers in office hours they could make a cleared transfer on the day.
In general, don't be afraid to make reasonable requests of either or both dealers, after all they want to do the transaction just as you do.
In general, don't be afraid to make reasonable requests of either or both dealers, after all they want to do the transaction just as you do.
I had a similar dilemma once before on a car purchase.
I applied for a loan from my bank and used this to buy the new car.
The old car was sold a week later and these funds were used to pay off the loan in full. As I was still within the 14 day cooling off period there was no interest to pay on the loan.
I applied for a loan from my bank and used this to buy the new car.
The old car was sold a week later and these funds were used to pay off the loan in full. As I was still within the 14 day cooling off period there was no interest to pay on the loan.
Ken_Code said:
It’s probably worth starting an emergency fund so that this sort of thing doesn’t catch you out in the future.
I already do but would hardly consider a car purchase an emergency and a valid reason to break into those savings.Personally I think once you start dipping into savings that should be ring fenced for emergency use only, it becomes easier to justify doing so and will happen more often if you're not careful. The four or five months buffer you started with starts getting eroded and then when you really need it...
Just my take and every one has their own views on managing money.
Anyway, looks like a fairly straightforward solution as already discussed above.
I had a strange situation with a private seller when looking at buying a new Shed. I went to see the car, agreed a price, and then there was the confusion over payment and collection of the vehicle which was hampered by a language barrier.
Turned out that the seller needed my funds to buy his new(er) car. He still needed to use the car to get to work and drive around finding the next car. Then when he found his new(er) car I could collect the car! So I would have the risk of no money and in the meantime the car could be stolen or written off. No thank you!
Turned out that the seller needed my funds to buy his new(er) car. He still needed to use the car to get to work and drive around finding the next car. Then when he found his new(er) car I could collect the car! So I would have the risk of no money and in the meantime the car could be stolen or written off. No thank you!
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