Done a deal on Private car sale, seller insisting on cash

[s3fella]

As above, doesn't sound too much of an issue, but it is a company selling an ex company car, selling as a private sale.
They are insisting on me paying by cash, will issue a bill of sale on company Headed paper but it "wont be a vat invoice". Which again all seems ok, but no directors have been available to speak to, the "ops mananger" is dealing with it, who has no business card, doesn't show on the website, but does seem to work there and was in and out of an office there.
He wants me to pay him the cash. I have offered bankers draft or transfer but it must be cash.

What do I need to do to protect myself? I am thinking letter from MD authorising sale at agreed price and authorising Ops manager name of xxx to act on behalf of the company? Then what he does with the cash is their problem!
I am worried that in three weeks I get someone from company saying oi, where is our co car and this guy has done a bunk!!

It's 8k and is what id expect price wise for a private sale, in a dealer it would be I think 9k + but not 10k. So it not obviously an undervalue transaction!

[Bikesalot]

Sounds like a very big issue to me.

I'd be turning around and walking away

[Darranu]

The fact you felt the need to ask the question gives you your answer.
If there's a story walk, always another car.

[Car mad enthusiast]

Walk away now and go and buy a car from a garage instead.

Sounds like a cash/tax dodge to me by the company.

[andburg]

I'm surprised a company these days owns a car, most company cars are leased.

I'd be in the same camp as you, nervous!

I assume its not a huge company and see no reason to request payment in cash only if this is for a company asset unless something strange is going on. Turn up in work hours to speak to the guy about it and make sure you speak to a director to confirm that they agree the amount. Make sure they provide you with a signed, dated receipt and the v5.

I'd probably walk away as I'm not very trusting.

[s3fella]

Bikesalot said:

Sounds like a very big issue to me.

I'd be turning around and walking away

What i mean about cash not being an issue is i can get it and it is a legal method of payment. I suspect there may be some "interesting" accounting going on, but that is not really any of my business. But I asked is it the company selling it or an individual and he said it was company. So I need to make sure I "pay the company" I suppose. Which I can do in cash if they insist, but I need to cover myself.
I share your concerns, but there was nothing dubious about the viewing, I saw all paperwork, V5 etc, and nothing seems to be out of the ordinary apart from them wanting physical cash.

I presume if I was not paying cash it would be bankers draft to company or transfer to company account. But walking into their finance dept with cash and getting a receipt would not be "that different" I suppose.

But I share your concern as it does seem a bit odd.

[essayer]

No company would want that amount of cash on premises. Run.

[s3fella]

Darranu said:

The fact you felt the need to ask the question gives you your answer.
If there's a story walk, always another car.

I take your point, but 20 years ago, I'd not be asking the question! And I suppose traders and dealers are handing over pound notes all the time.

There's clearly some reason they want cash, to do with VAT or tax etc, but I'm not the VAT man, so should I care?

[s3fella]

andburg said:

I'm surprised a company these days owns a car, most company cars are leased.

I'd be in the same camp as you, nervous!

I assume its not a huge company and see no reason to request payment in cash only if this is for a company asset unless something strange is going on. Turn up in work hours to speak to the guy about it and make sure you speak to a director to confirm that they agree the amount. Make sure they provide you with a signed, dated receipt and the v5.

I'd probably walk away as I'm not very trusting.

I've been in work hours, spoke to employees who knew it was for sale, went to get the guy who was dealing with it, etc. There's nothing from the encounter that raises alarm bells except the payment bit! But oddly, they guy seems nervous about cash himself and asked if I can get it from their bank and hand it over at their local branch so they know it is legit! lol

[R8Steve]

They obviously don't want it through the accounts for whatever reason.

As long as the documentation is in order no reason you shouldn't go ahead subject to all the usual checks, what they do with the cash is up to them.

[21TonyK]

Sounds seriously iffy. Walk away.

[s3fella]

essayer said:

No company would want that amount of cash on premises. Run.

I'm not sure it is an "unusual" amount of cash for them tbh. Haulage company.

But there is clearly some reason they want it in cash.

[s3fella]

R8Steve said:

They obviously don't want it through the accounts for whatever reason.

As long as the documentation is in order no reason you shouldn't go ahead subject to all the usual checks, what they do with the cash is up to them.

My thinking exactly

[s3fella]

21TonyK said:

Sounds seriously iffy. Walk away.

My thinking exactly! lol

[Jonno02]

Don't try and convince yourself it's anything other than a bit dodgy.

Save yourself the possibility of being 8k lighter and walk away.

[foxsasha]

Tell them youre concerned and ask them why they want cash.

[s3fella]

Jonno02 said:

Don't try and convince yourself it's anything other than a bit dodgy.

Save yourself the possibility of being 8k lighter and walk away.

But is it? They will give a company receipt on company headed paper. I will get copy of V5, all keys, service books etc? So is it a dodgy sale? Do directors of companies deal with 5 year old co car sales themselves?

I'm not saying your wrong, but I am trying to see if from all sides.

[R8Steve]

Just ask to speak to the MD to get him to confirm all is well, i'm sure he can spare a couple of minutes out his day to do so.

[s3fella]

foxsasha said:

Tell them youre concerned and ask them why they want cash.

I did and he said "beacause there is no VAT on it".

I'm not even sure if it would be a VAT qualifying asset anyway, but even if it was, has that got anything to do with me?

[eldar]

s3fella said:

But is it? They will give a company receipt on company headed paper. I will get copy of V5, all keys, service books etc? So is it a dodgy sale? Do directors of companies deal with 5 year old co car sales themselves?

I'm not saying your wrong, but I am trying to see if from all sides.

You have HPI'd it, properly?