Go Back   DealershipForum.com > Dealer Talk > General Discussions

Notices

General Discussions Car People talking about something other than the Car Business Is there life outside of the Dealership?

Reply
 
Thread Tools Display Modes
Old 03-02-2017, 09:51 AM   #1
tbk125
New Member
 
Join Date: Jan 2017
Posts: 10
Default How are you receiving payment for vehicle sales?

Background: I am opening a small used motorcycle dealership.

Question: How do you currently accept payments from customers, financing institutions, and any other entity that may be purchasing your vehicles?

Any input is greatly appreciated.

Thanks,

Tom
tbk125 is offline   Reply With Quote
Old 03-03-2017, 09:24 AM   #2
jayhawk
Senior Member
 
Join Date: May 2008
Posts: 285
Default

cash, personal check for over $250 only [ that's the county threshold for felony bad check pursuit ] , major credit card. NO OPEN ACCOUNTS, EVER , even for family, especially for your customer demographic.
this from 23 years as a Kawasaki / Yamaha dealer.
jayhawk is offline   Reply With Quote
Old 03-03-2017, 11:04 AM   #3
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 594
Default

New car store here, with small used car operation. Cash, check, credit card, wire/ACH (we have an account for incoming wires only so don't need to worry about any issues there).
mryan55 is offline   Reply With Quote
Old 03-03-2017, 12:27 PM   #4
steve_biegler
Senior Member
 
Join Date: May 2010
Posts: 1,405
Default

If any of you are taking credit cards check your state laws on title delivery. In my state we have 45 days to deliver title. Put yourself on as 1st lienholder until 90 days are up because they can dispute the purchase. You have to prove why it should not be disputed! The whole time you are without the funds. Just a word to the wise. Don't forget the fee you are charged for letting them use their card.
Completely agree with No Open Accounts! If you are foolish enough to allow it don't forget to be the lienholder on the title.
steve_biegler is offline   Reply With Quote
Old 03-03-2017, 06:41 PM   #5
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 594
Default

Quote:
Originally Posted by steve_biegler View Post
If any of you are taking credit cards check your state laws on title delivery. In my state we have 45 days to deliver title. Put yourself on as 1st lienholder until 90 days are up because they can dispute the purchase. You have to prove why it should not be disputed! The whole time you are without the funds. Just a word to the wise. Don't forget the fee you are charged for letting them use their card.
Completely agree with No Open Accounts! If you are foolish enough to allow it don't forget to be the lienholder on the title.
Very valid point about accepting credit cards with the risk of the transaction being disputed in the future. I have always put a self-imposed limit of $2,000 on a credit card toward vehicle purchase for exactly this reason. It limits my liability if someone does want to dispute the charge and it prevents paying needless processing fees.

I have never run into an incident where a credit card is charged back on a vehicle purchase, but a friend at another store had an incident where credit card was processed over the phone, original receipt never signed by customer at delivery, and the transaction was later charged back. I think it $4,000 or so -- so just part of the deal, but still a major headache.
mryan55 is offline   Reply With Quote
Old 03-03-2017, 08:28 PM   #6
Benny
New Member
 
Join Date: Feb 2017
Posts: 4
Default

I don't accept credit cards at my car dealership. Mainly for the chargeback potential as others have mentioned, plus the fees dig into your profit. You also have to remember the fees also go against all the state fees you collect like sales tax. The state won't give you a discount for their fees so for you it is a losing proposition.

Personally, I like getting paid by check. I have no preference if it is certified or personal. Some dealers only like certified bank checks but these get counterfeited all the time and good luck calling a bank to verify it's legitimacy. They won't do it. I don't mind cash as long as it's under $10,000 so you don't have to worry about IRS forms or having to count a large amount. I used to have a separate bank account for wire transfers. I've only ever had one person who was from out of state that wanted to pay by wire so I closed the account. Bank kept charging me an inactivity fee.
Benny is offline   Reply With Quote
Old 03-06-2017, 08:55 AM   #7
tbk125
New Member
 
Join Date: Jan 2017
Posts: 10
Default

Quote:
Originally Posted by jayhawk View Post
cash, personal check for over $250 only [ that's the county threshold for felony bad check pursuit ] , major credit card. NO OPEN ACCOUNTS, EVER , even for family, especially for your customer demographic.
this from 23 years as a Kawasaki / Yamaha dealer.
By "open accounts" do you mean delivering the vehicle without receiving payment yet? Just want to make sure I am understanding correctly.
tbk125 is offline   Reply With Quote
Old 03-06-2017, 03:41 PM   #8
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 594
Default

Some of us certainly deliver cars without payment, but I would say having open accounts probably is more of a drag on those of us with parts and service operations. Every small shop is going to want to have a parts account with you and they just have to be watched close to make sure you aren't holding the bag if they go belly up. Our biggest offenders are usually body shops that run up huge balances from their parts orders.

Only time a car goes without payment is if it's a government sale backed by a PO. In my area some won't issue a check until vehicle is titled or MSO arrives. So a PO must suffice.
mryan55 is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
States that don't charge Sales Tax on Private Party Vehicle Sales XDCX Automotive Discussions 5 10-29-2012 07:52 PM
Are dealers receiving Miller Special Tools for the 2012 Cummins 5.0 V8? XDCX Service 3 07-22-2010 10:04 AM
2009 Vehicle Sales Tax Dudction ohiobuckeyes Automotive Discussions 7 11-06-2009 08:11 AM
Can Chrysler Financial bypass the dealers on Used Vehicle sales? XDCX Sales 2 08-18-2009 08:53 AM
Ebay's new Fee Structure for Vehicle Sales XDCX Automotive Discussions 1 09-17-2008 10:49 AM


All times are GMT -7. The time now is 04:32 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016