What is an Advance Payment and which vehicles need one? (2024)
It’s the amount you need to pay upfront for some large or high specification vehicles. It’s in addition to your weekly mobility allowance.
It covers the difference between the cost of your car and your allowance paid over the length of your agreement. It’s not a deposit and it’s non-refundable.
You can see the Advance Payment when you search for a vehicle.
There are also some vehicles which have no Advance Payment, or cost less than your weekly allowance, which means you’ll still get the rest of your allowance to spend however you choose. To find these, use the filters when you search.
If you’ve chosen a car with an Advance Payment, you’ll need to pay it to your dealer in full, either before or on the day you get your new vehicle.
How you pay your Advance Payment depends on your dealer. They’ll let you know which payment methods they accept. Dealers do not accept cheques, and most do not accept cash, but this is down to each dealer’s discretion.
You can use your New Vehicle Payment to help towards your Advance Payment
If you're eligible for the £750 New Vehicle Payment, you can choose to send this directly to your dealer to help towards your Advance Payment.
If you’ve already ordered and you want to do this, please speak to your dealer.
Paying a deposit
Sometimes your dealer might ask you to pay this when you’re ordering. It will be deducted from your Advance Payment when you get your new vehicle.
If your dealer calls to ask for a deposit, please confirm who you're speaking to before you give any payment information. If you're in any doubt, end the call and contact your dealer directly.
It's the amount you need to pay upfront for some large or high specification vehicles. It's in addition to your weekly mobility allowance. It covers the difference between the cost of your car and your allowance paid over the length of your agreement. It's not a deposit and it's non-refundable.
Advance payments may include: Paying for a magazine subscription / streaming service for the full year rather than paying by the month. Paying monthly premiums to your insurance company in exchange for their protection later.
Advance payments are generally made in two types of situations: 1) as security for the delivery of goods or services or 2) as an early payment of a bill or debt.
Advance payments are recorded as a prepaid expense in accrual accounting for the entity issuing the advance.Advanced payments are recorded as assets on the balance sheet. As these assets are used they are expended and recorded on the income statement for the period in which they are incurred.
Advance payment and upfront payment are similar, but advance payment usually refers to payment made before delivery or completion, while upfront payment refers to payment made at the beginning of a project or service.
This can result in a disparity between the upfront payment made and the actual value of the goods or services received, ultimately disadvantaging the buyer. In some cases, other drawbacks may arise when the buyer wants to modify or cancel an order after an advance payment has been made.
Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.
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