Selling car privately & dealing with transfer of funds

[Volition]

Hi all, I'm after some advice. I'm selling my car privately and want to know what the best way is to deal with the transfer of funds. This is the first time I'm attempting to sell a car of high value privately (£18k) and want to know what the safest way would be to deal with the transaction. I can't expect the buyer to bring £18k in cash for us to deposit into my account at my local bank.

Are bank transfers safe enough? Do bank transfers require a clearing period?

What have others done in similar circumstances?

Thanks in advance.

[andymc]

go to his branch with him

[wibblebrain]

Volition said:

Hi all, I'm after some advice. I'm selling my car privately and want to know what the best way is to deal with the transfer of funds. This is the first time I'm attempting to sell a car of high value privately (£18k) and want to know what the safest way would be to deal with the transaction. I can't expect the buyer to bring £18k in cash for us to deposit into my account at my local bank.

Are bank transfers safe enough? Do bank transfers require a clearing period?

What have others done in similar circumstances?

Thanks in advance.

I would accept:

1) Cash, but only if paid in to the bank counted and verified by bank staff.
2) Going to a bank together and withdrawing / depositing the money there and then.
3) A bankers draft / building society cheque - but only if the buyer sends me a copy in advance of collecting the car so that it can be checked for authenticity by ringing the issuing branch prior to collection of the car.
4) Logging in to internet banking and observing a faster payment being executed in front of me. Faster payments cannot be stopped.

[eltax91]

andymc said:

go to his branch with him

Yep. He arranges a mutually convenient time at your local high street. You go to his branch, watch him extract cash/ draft and then you walk to yours, deposit it and he drives you home in his new car.

[Volition]

andymc said:

go to his branch with him

Would you feel comfortable walking around with £18k in cash? Makes me a little nervous.

[wibblebrain]

Volition said:

Would you feel comfortable walking around with £18k in cash? Makes me a little nervous.

Let him carry it to your bank. It's only yours when it's deposited in your account.

[Slidingpillar]

I guess it depends on the payees bank, but mine has a daily transaction limit of £10000 applied - ostensibly money laundering regulations I think.

I sold a car for less than that though and we had no problems with the money, on a Sunday too. My buyer had done a test payment of £1 a couple of days earlier to make sure the details were correct.

[davyvee]

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

[Volition]

Slidingpillar said:

I guess it depends on the payees bank, but mine has a daily transaction limit of £10000 applied - ostensibly money laundering regulations I think.

I sold a car for less than that though and we had no problems with the money, on a Sunday too. My buyer had done a test payment of £1 a couple of days earlier to make sure the details were correct.

I guess he or she will need to contact the bank in advance if they want to take out such a large amount of money. I'll put this to the buyer. Hopefully they won't mind walking to my bank with £18k stuffed in their bag.

[Volition]

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

Is this safe enough? Can it be retracted by the person who deposited the funds?

[Riley Blue]

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

This is how I paid the deposit (after I first viewed) and balance (when I collected) on a car I bought recently. It's so easy.

[thatdude]

Volition said:

Is this safe enough? Can it be retracted by the person who deposited the funds?

I've made payments to several people using online baking. As far as I'm aware I couldn't reverse it. I'm with NatWest by the way, don;t know how other banks do their online banking.

[RESSE]

Riley Blue said:

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

This is how I paid the deposit (after I first viewed) and balance (when I collected) on a car I bought recently. It's so easy.

+ 1

Easy and immediate.

[SturdyHSV]

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

Bought both of my cars like this, it's instant, they can check it, and as far as I'm aware you can't easily reverse it?

[Jim AK]

Sold 1 of ours last year & buyer did it by BACS transfer.

Seemed pretty instantaneous & I did get money day before. Buyer just needs your A/C details.

Think there is a limit to value of transaction £10k? When I paid for my new car I did 2 transactions to avoid it

[oyster]

RESSE said:

Riley Blue said:

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

This is how I paid the deposit (after I first viewed) and balance (when I collected) on a car I bought recently. It's so easy.

+ 1

Easy and immediate.

What about when the seller disappears with the deposit and the car?

[rfoster]

Chaps or Fast payment transfer are pretty much instant and not reversible - BACS needs 2-3 working days to clear.

You could also go with him to his bank and get them to provide you with a bankers draft from his account (so you can confirm it's genuine). All safe enough.

[RESSE]

oyster said:

RESSE said:

Riley Blue said:

davyvee said:

Internet transfer. They are now instant.

Took about 3 seconds for the funds to appear in my bank on my last private sale.

This is how I paid the deposit (after I first viewed) and balance (when I collected) on a car I bought recently. It's so easy.

+ 1

Easy and immediate.

What about when the seller disappears with the deposit and the car?

I always view at the seller's home and have to date not been 'burnt' by someone running off with my deposit.

Maybe I have been lucky and I usually leave £100 as a token of good will rather than a chunk of money.

[mrben1234]

Slidingpillar said:

I sold a car for less than that though and we had no problems with the money, on a Sunday too. My buyer had done a test payment of £1 a couple of days earlier to make sure the details were correct.

This. Do the £1 transfer and the rest if you decide to proceed.

[Spuffington]

Another vote for internet transfer.

Bought my motorhome a few weeks ago by doing this - transferred the funds using my iPhone and he checked his bank account using his and keys/docs were transferred there and then. Job done.