Q&A special: Brokers - When do I pay him?

Q: Is it safe to pay money to a broker before I've taken delivery of the car?
Gavin Lennon, Surrey

A: It puts you in a very vulnerable position, even if the broker is trustworthy. If the broker goes bust – and it doesn't just happen to dishonest brokers – before your car has arrived, you may not see the car or the money.

The safest options are to use a broker who insists you pay the dealer directly for the car, or pay the money into an 'escrow' holding account until the car is ready for delivery.

However, if you have already handed cash over to a broker, get written proof that the supplying dealer has received your money from the broker and noted it as payment for the car you have ordered.