Selling a high value car privately
Discussion
What's the deal these days on making sure the money you receive for selling your car stays with you?
Good
CHAPS
Buyer and seller at bank counter moving cash
Bad
Cash - noone really wants to have bundles sitting around
Bankers draft - can be reversed by the bank if they later find it to be fraudulently issued
Standard transfer - can be reversed before close of business & bank can reverse it if they later find it fraudulently issued.
A friend who recently sold an £80k car privately went with CHAPS after his bank told him there were no circumstances in which it could be reversed. Is anyone aware of anything to the contrary?
Ta
Good
CHAPS
Buyer and seller at bank counter moving cash
Bad
Cash - noone really wants to have bundles sitting around
Bankers draft - can be reversed by the bank if they later find it to be fraudulently issued
Standard transfer - can be reversed before close of business & bank can reverse it if they later find it fraudulently issued.
A friend who recently sold an £80k car privately went with CHAPS after his bank told him there were no circumstances in which it could be reversed. Is anyone aware of anything to the contrary?
Ta
My understanding was that ALL bank transactions are reversible- but only for a good reason.
I sold my GTR to a chap and we had to sit there for 2 hours while my bank confirmed that it was recieved and checked with the sending bank that it would not be retracted.
I can't remember exactly, but I think they got a fax from the sending bank saying it would not be retracted.
I sold my GTR to a chap and we had to sit there for 2 hours while my bank confirmed that it was recieved and checked with the sending bank that it would not be retracted.
I can't remember exactly, but I think they got a fax from the sending bank saying it would not be retracted.
My what its worth:-
For a high value sale, I once got my solicitor to draw up a short contract of sale with all the right terms and also with some questions that the buyer had to answer / agree. Money went into solicitors client account before hand over, and released thereafter. Solicitors have a certain amount of professional indemnity cover when it comes to their advice and that gave me some comfort.
I was billed for less than an hours rate, so long as I offered a ride in my then road-legal missile !
( ... which really did cost £6 mile to run ... ! )
For a high value sale, I once got my solicitor to draw up a short contract of sale with all the right terms and also with some questions that the buyer had to answer / agree. Money went into solicitors client account before hand over, and released thereafter. Solicitors have a certain amount of professional indemnity cover when it comes to their advice and that gave me some comfort.
I was billed for less than an hours rate, so long as I offered a ride in my then road-legal missile !
( ... which really did cost £6 mile to run ... ! )
Edited by Carparticus on Wednesday 12th May 16:07
having just sold and then bought an expensive car privately, i discussed this with my bank and they assured me that CHAPS or bank transfer (BACS) were the best options as neither could be reversed. or get a bankers draft verified at the bank to make sure it is real, then they can't be reversed either...
interested a cheque can be cancelled even after it has been cleared! upto seven days apparently... not sure what the "clearing" bit is even for in that case
interested a cheque can be cancelled even after it has been cleared! upto seven days apparently... not sure what the "clearing" bit is even for in that case
swerni said:
CHAPS payments can be reversed.
I had to get one done before Christmas when my bank lost my wages.
Only with very good reason (and I guess yopur situation would be one of those)I had to get one done before Christmas when my bank lost my wages.
They can't be reversed under normal circumstances I have been told by some who are in the banking industry.
When I bought my last expensive car I paid CHAPS and we waited until it cleared (the guy I was buying from bought me lunch
) and then I drove home.When I have sold a high value car in the past.
I have asked the buyer to bring cash, we then both went in the car to my local bank and pay in the money (this way they can check authenticity/correct value), or if you are lucky and both banks are on the same highstreet, buyer pulls out cash from bank, and walks across to sellers bank to pay in money.
Struggle to think of a safer way, as CHAPS/Bankers Drafts e.t.c all have flaws.
I have asked the buyer to bring cash, we then both went in the car to my local bank and pay in the money (this way they can check authenticity/correct value), or if you are lucky and both banks are on the same highstreet, buyer pulls out cash from bank, and walks across to sellers bank to pay in money.
Struggle to think of a safer way, as CHAPS/Bankers Drafts e.t.c all have flaws.
andye30m3 said:
Last car I sold I dropped at the buyers house, as I was passing to pick up my new car.
Then we both went to his bank to get the bankers draft made out, seamed the best way to do things at the time.
Admit that does sound pretty sensible, however there may be times where practical reasons (ie. where buyer lives) stop that from working.Then we both went to his bank to get the bankers draft made out, seamed the best way to do things at the time.
Out of interest, why bankers draft instead of "please withdraw £X in cash and immediately pay to sort code / account num" ?
pikey said:
andye30m3 said:
Last car I sold I dropped at the buyers house, as I was passing to pick up my new car.
Then we both went to his bank to get the bankers draft made out, seamed the best way to do things at the time.
Admit that does sound pretty sensible, however there may be times where practical reasons (ie. where buyer lives) stop that from working.Then we both went to his bank to get the bankers draft made out, seamed the best way to do things at the time.
Out of interest, why bankers draft instead of "please withdraw £X in cash and immediately pay to sort code / account num" ?
Seller of the S2000 wanted me to collect quickly and I didn't want to collect without having completed the deal on the car I was selling, therefore went with the bankers draft otherwise would have been happy to take cash I'd seen come from the bank or paid it into my bank before letting the car go.
uuf361 said:
swerni said:
CHAPS payments can be reversed.
I had to get one done before Christmas when my bank lost my wages.
Only with very good reason (and I guess yopur situation would be one of those)I had to get one done before Christmas when my bank lost my wages.
.
How about fraud? Someone figured out your details, called the bank and had £50k CHAPSd out of it. You find out in a few days and demand it's their mess and they must fix.
Good reason?
Some poor bloke might be a car down on the other side of that.
Going slightly OT, and this might not be 'high value', but about 15 yrs ago I sold a car for £8k and we agreed a cash payment.
We both marched into the Midland bank (now HSBC) and the teller used a machine to verify it, which promptly rejected half a dozen £20 notes for being forgeries. Oopps !
They had all looked and felt convincing to us, and I didn’t think the seller was pulling a fast one, it was more a reflection of the number of dodgy notes in circulation. The teller also refused to hand them back to the seller leaving him out of pocket.
We both marched into the Midland bank (now HSBC) and the teller used a machine to verify it, which promptly rejected half a dozen £20 notes for being forgeries. Oopps !
They had all looked and felt convincing to us, and I didn’t think the seller was pulling a fast one, it was more a reflection of the number of dodgy notes in circulation. The teller also refused to hand them back to the seller leaving him out of pocket.
Sold my car yesterday and was paid via CHAPS.
Was told by the lady in the bank that it can be reversed up until midday the following day, but that you had to jump through hoops to do so. So, having also done my due diligence on the buyer, I took a small calculated risk when letting the car go. The cash is still there now, so happy days. I hope to be on the other side of the fence this weekend, when I am supposed to be picking my next car (subject to a clean condition report).
Re. timing, the CHAPS payment would apear in the recipients account as soon as it has been processed (though this is typically not done in branch - instead a processing centre is sent a fax by the branch to instruct the transfer). But while the funds would appear quickly in the recipient's account, this does not mean it is irreversable at that stage.
The alternatives were a draft, or cash taken out over the counter. A draft is fine as long as you go with the buyer to have it prepared at their bank. Under no circumstances should you accept a draft that the buyer has already got in his/her possession as it could be a fake. And drafts also take days to clear (varies, but I was told 4-5 days yesterday) even though they can only be prepared if the payer's account has adequate funds in place
Cash is neat, but for large amounts you clearly give yourself a bit of a security risk until it is safely banked. I was quite happy to do this yesterday as my branch was only 50 meters from the buyers bank, but as he was paying from a business account he would have incurred a chunky fee and I did not want to get into a debate about splitting the cost (several hundred pounds). If taken from a personal account there should be no such charges and this would be my preference as a seller.
I like the lawyer route (mentioned above) and have often thought there is a market for such an 'escrow' type service. But I imagine it will only be cost effective for very expensive cars.
Was told by the lady in the bank that it can be reversed up until midday the following day, but that you had to jump through hoops to do so. So, having also done my due diligence on the buyer, I took a small calculated risk when letting the car go. The cash is still there now, so happy days. I hope to be on the other side of the fence this weekend, when I am supposed to be picking my next car (subject to a clean condition report).
Re. timing, the CHAPS payment would apear in the recipients account as soon as it has been processed (though this is typically not done in branch - instead a processing centre is sent a fax by the branch to instruct the transfer). But while the funds would appear quickly in the recipient's account, this does not mean it is irreversable at that stage.
The alternatives were a draft, or cash taken out over the counter. A draft is fine as long as you go with the buyer to have it prepared at their bank. Under no circumstances should you accept a draft that the buyer has already got in his/her possession as it could be a fake. And drafts also take days to clear (varies, but I was told 4-5 days yesterday) even though they can only be prepared if the payer's account has adequate funds in place
Cash is neat, but for large amounts you clearly give yourself a bit of a security risk until it is safely banked. I was quite happy to do this yesterday as my branch was only 50 meters from the buyers bank, but as he was paying from a business account he would have incurred a chunky fee and I did not want to get into a debate about splitting the cost (several hundred pounds). If taken from a personal account there should be no such charges and this would be my preference as a seller.
I like the lawyer route (mentioned above) and have often thought there is a market for such an 'escrow' type service. But I imagine it will only be cost effective for very expensive cars.
I can't see anything safer than going with the buyer to a bank and drawing a Banker's Draft and/or cash to put straight into the seller's account.
If I bought an expensive car privately I'd have no problems with doing that - it would just take a bit of planning to ensure that the seller's local bank knew you were coming in etc and that they were open at the time you needed them.....
If I bought an expensive car privately I'd have no problems with doing that - it would just take a bit of planning to ensure that the seller's local bank knew you were coming in etc and that they were open at the time you needed them.....
pikey said:
uuf361 said:
swerni said:
CHAPS payments can be reversed.
I had to get one done before Christmas when my bank lost my wages.
Only with very good reason (and I guess your situation would be one of those)I had to get one done before Christmas when my bank lost my wages.
.
How about fraud? Someone figured out your details, called the bank and had £50k CHAPSd out of it. You find out in a few days and demand it's their mess and they must fix.
Good reason?
Some poor bloke might be a car down on the other side of that.
Outside of cash paid in while you watch CHAPS would be my preferred method.
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