AA Warns Car Buyers Not To Pay Cash
AA Car Buying Advice
The Automobile Association has warned second-hand buyers that paying cash leaves them “open to dodgy sellers” This is concerning as a recent company survey proved that twenty percent of buyers “would pay three-quarters of the value of a car in cash” and fourteen percent would “pay the total asking price in cash”. The Automobile Association has therefore emphasised that cash is simply “a gift for fraudsters keen to disappear after a dodgy deal”. This is a particular problem if the buyer later learns that the car has been stolen or written-off. Furthermore, if it is subject to finance it could be re-claimed by the money lender leaving the buyer thousands of pounds out of pocket. The Automobile Association's Car Data Check, however, minimises these concerns and is backed-up by a thirty-thousand pound guarantee should its findings be incorrect. Rather than cash, the breakdown specialist has therefore encouraged second-hand buyers to pay by bank draft or - for those with a laptop computer, tablet, or smart phone – via online transfer. The seller can then be traced if he/she misrepresents the car, although proving it and ensuring the payment is returned can be time consuming and expensive.
AA Representative Discusses Paying For Cars
The Automobile Association's Product Manager, Jeremy Tiffany, said: “Despite continued warnings to people about the potential consequences of paying in cash for vehicles, it’s clear from our survey that consumers continue to place their trust in sellers. This is particularly true if it looks like they will get their ideal car for a bargain price - which is a time when they should be on their guard the most”. Mr Tiffany continued: “Paying in cash to complete a deal is a risky decision to make and one that is not really necessary.” He concluded: “If you have cash burning a hole in your pocket there is the temptation to make an impulse purchase before you have had time to conduct the proper research. But bringing cash with you to collect a vehicle leaves you open to several threats. The most obvious one is that carrying a large amount of money is always dangerous, as the seller could simply take the money with no intention of handing over the car. More importantly, there is no proof of purchase when you pay for a vehicle in cash meaning you have no comeback with the seller should something go wrong.”