Selling a car and taking payment
Discussion
I hate selling cars, always have and always will, but sometimes I have to sell. I have mostly up to now taken a cash payment for the car, but a few sales have been via bank transfer.
How do you prefer to take payment? The next car I may sell will be for a reasonable amount of money, so I am thinking that cash isn't the best option and only take payment via bank transfer. Is this generally the safest method of taking payment?
How do you prefer to take payment? The next car I may sell will be for a reasonable amount of money, so I am thinking that cash isn't the best option and only take payment via bank transfer. Is this generally the safest method of taking payment?
Nickp82 said:
Yes, bank transfer is the best method. They’re so quick and easy now, any buyer who is reticent about it should be treated as suspicious.
It is how I prefer to pay, though I did pay in cash for my M5, but bank transfer for my old E55 and old M5 as well. I'm always happy to pay by whatever method the seller prefers.I bought a motorbike privately for a mighty £1,500 on October last year, and transferred the money to the sellers account, to be greeted with a message that as it was after 6pm it wouldn't be processed until the next day. To the sellers incredible credit, he let me take the bike and confirmed the next morning the cash had arrived.
Anyways point being worth confirming with your bank what the acceptable times /days are for processing transfers.
Anyways point being worth confirming with your bank what the acceptable times /days are for processing transfers.
Large amounts don't always go through straight away.
Then you have a buyer that's paid and wants to take the car away, and a seller that hasn't seen the money hit their account so wont release the car.
And some people turn up to find they have a daily limit on their bank account. Ie, HSBC £10,000 for many.
So my advice is take the buyer to your local branch of their account.
Stand next to them at the counter whilst they do the transfer.
Even if the money doesn't hit your account straight away, you know it's coming.
And the bank do all the ID checks there at the counter for the buyer. Extra peace of mind that the buyer hasn't taken control of someone else's bank account.
Then you have a buyer that's paid and wants to take the car away, and a seller that hasn't seen the money hit their account so wont release the car.
And some people turn up to find they have a daily limit on their bank account. Ie, HSBC £10,000 for many.
So my advice is take the buyer to your local branch of their account.
Stand next to them at the counter whilst they do the transfer.
Even if the money doesn't hit your account straight away, you know it's coming.
And the bank do all the ID checks there at the counter for the buyer. Extra peace of mind that the buyer hasn't taken control of someone else's bank account.
Edited by Trevor555 on Sunday 14th June 17:48
I recently sold a car for just under 6k and the buyer transferred it in chunks of 2k which pinged through instantly on my phone....happy days.
I then bought a car later that week for 5k and paid in one hit via BACS...this was for a car is not seen that I'd arranged a transport guy to collect..the deal was the transport guy would ring me when he has sight of the car, id pay, he'd load up....there was an awkward 35min delay in the cash appearing in the sellers bank...had to ring them up but even then they couldn't rush it through.
Anyway ..it seems that you can send multiple lower amounts instantly but larger ones might be subject to security check that cause some delay....
I then bought a car later that week for 5k and paid in one hit via BACS...this was for a car is not seen that I'd arranged a transport guy to collect..the deal was the transport guy would ring me when he has sight of the car, id pay, he'd load up....there was an awkward 35min delay in the cash appearing in the sellers bank...had to ring them up but even then they couldn't rush it through.
Anyway ..it seems that you can send multiple lower amounts instantly but larger ones might be subject to security check that cause some delay....
A few years ago bank transfer worked really well - I bought a car in 2016 for £8,600 with a transfer following a phone call to my bank while I was at the seller's house, he checked it had gone through and I drove it home.
But then my bank (Royal Bank of Scotland, Virgin One Account) dropped the limit from £10,000 to £1,000 per payment! Allegedly you could transfer £1,000 at a time up to £10K a day, but the first time I tried that in 2018 for a £3K car the 2nd two transactions got referred to their fraud team because it was repeated transfers to someone I had never paid before. Well of course not, I hadn't bought a car from that seller before!
Luckily he was only 30 miles away so I rang the "fraud line" and got the payments released but I wasn't able to get all 3 done while I was with the seller, although thankfully he came good.
So to avoid all that nonsense when I bought a car last December that was over £10K from a seller 140 miles away that he needed gone before Christmas, after discussing it with him I just turned up with the cash in a carrier bag like in the good old days!
My bank offered to do a CHAPS payment for a fee, but couldn't guarantee what day it would go through - so was I supposed to sleep on his doorstep in December until it did?
Cash is still the fool-proof option, but even that can be an issue when you go to pay in a chunk. As I found out when I took cash for the car it had replaced and went to pay it in. 'Cos if the cash came from selling drugs I'd obviously put it in my current account wouldn't I?
But my bank was so useless for online payments it seemed like the only way at the time and may explain why I've since closed that account.
I've no experience of the new account, but like most things these days I can only see it getting worse!
It may vary from bank to bank but how are you to know?
If you have any doubts OP just get holding the folding!
But then my bank (Royal Bank of Scotland, Virgin One Account) dropped the limit from £10,000 to £1,000 per payment! Allegedly you could transfer £1,000 at a time up to £10K a day, but the first time I tried that in 2018 for a £3K car the 2nd two transactions got referred to their fraud team because it was repeated transfers to someone I had never paid before. Well of course not, I hadn't bought a car from that seller before!
Luckily he was only 30 miles away so I rang the "fraud line" and got the payments released but I wasn't able to get all 3 done while I was with the seller, although thankfully he came good.
So to avoid all that nonsense when I bought a car last December that was over £10K from a seller 140 miles away that he needed gone before Christmas, after discussing it with him I just turned up with the cash in a carrier bag like in the good old days!
My bank offered to do a CHAPS payment for a fee, but couldn't guarantee what day it would go through - so was I supposed to sleep on his doorstep in December until it did?
Cash is still the fool-proof option, but even that can be an issue when you go to pay in a chunk. As I found out when I took cash for the car it had replaced and went to pay it in. 'Cos if the cash came from selling drugs I'd obviously put it in my current account wouldn't I?
But my bank was so useless for online payments it seemed like the only way at the time and may explain why I've since closed that account.
I've no experience of the new account, but like most things these days I can only see it getting worse!
It may vary from bank to bank but how are you to know?
If you have any doubts OP just get holding the folding!
Edited by Mr Tidy on Monday 15th June 00:49
Mr Tidy said:
Cash is still the fool-proof option, but even that can be an issue when you go to pay in a chunk. As I found out when I took cash for the car it had replaced and went to pay it in. 'Cos if the cash came from selling drugs I'd obviously put it in my current account wouldn't I?
How do you think drug dealers pay their cash in then? There was a case recently where students were hired to pay cash in via paying in machines. As a result of that case, most banks won't let you pay in cash without your debit card present. I have the same issue with the car I'm selling. There is a buyer who is very interested but lives miles away and wants to see the car at the weekend and take it if he likes it (it's a good car so I expect this to happen).
Problem is, the car isn't going anywhere until the money has cleared in my account (including any cash) which is difficult at weekends, and £50k means it probably isn't possible in a single transfer anyway.
He's planning to talk to his bank this week to see what his options are.
Problem is, the car isn't going anywhere until the money has cleared in my account (including any cash) which is difficult at weekends, and £50k means it probably isn't possible in a single transfer anyway.
He's planning to talk to his bank this week to see what his options are.
The problems above are very real and can add stress and frustration to an already stressful frustrating process! In this day and age they should be completely avoidable.
The best scenario in my experience is when both parties back with the same bank. Then online or at the counter transactions really do seem to go through instantly.
The best scenario in my experience is when both parties back with the same bank. Then online or at the counter transactions really do seem to go through instantly.
Bank transfer for me.
Bought an alfa a few years back and went to pay via transfer only to be met with a 'your transfer requires extra checks by our fraud squad' type message.
As it was later in the day there was' much I could do about it! Technically I'd transferred the cash but he hadn't got it! I didn't want to leave without the car and equally he didn't want to give me the car without the cash.
I called the bank from the App on my phone in front of him and let them speak to him (they said funds would get cleared the next day). On the back of that we agreed I would leave all the paperwork and spare key etc till the cash cleared.
All worked out fine the next morning and this is the only time I've had any issues doing it. Usually let the bank know in advance to help but this one time it seemed to slip the net at their end.
MUCH safer than taking cash with you! Especially these days!!
Bought an alfa a few years back and went to pay via transfer only to be met with a 'your transfer requires extra checks by our fraud squad' type message.
As it was later in the day there was' much I could do about it! Technically I'd transferred the cash but he hadn't got it! I didn't want to leave without the car and equally he didn't want to give me the car without the cash.
I called the bank from the App on my phone in front of him and let them speak to him (they said funds would get cleared the next day). On the back of that we agreed I would leave all the paperwork and spare key etc till the cash cleared.
All worked out fine the next morning and this is the only time I've had any issues doing it. Usually let the bank know in advance to help but this one time it seemed to slip the net at their end.
MUCH safer than taking cash with you! Especially these days!!
I had this recently selling a car at £4k. Was all very awkward as he had done his bit but no money. In the end he got a text asking if it was really him. He replied and still nothing.
In the end he did a PayPal friends and Family for the same amount. He said even if they did now try and bank transfer it wouldn't work as didn't have the money twice!
Paypal was instant, no come back on friends and family so no scam (I don't think) and I trusted him fully. I have also paid for cars this way. Traditional banking is starting to feel very dated.
In the end he did a PayPal friends and Family for the same amount. He said even if they did now try and bank transfer it wouldn't work as didn't have the money twice!
Paypal was instant, no come back on friends and family so no scam (I don't think) and I trusted him fully. I have also paid for cars this way. Traditional banking is starting to feel very dated.
jjr1 said:
Trust is an overlooked quality these days.
On the balance of probabilities, the guy buying my car is probably perfectly trustworthy.On the other hand, I don't know him from Adam, and there is no way on earth he's driving away with my £50k car until the money is in my bank and my bank is assuring me it can't be taken back out!
Especially for a car that I don't really want to sell. I'm half hoping he gets fed up with it all and decides not to buy it!
I usually use bank transfer, but like others I've been in that horrid situation where there's a delay and it all gets a little awkward.
When selling, despite knowing it can't happen, I still always transfer the money out of my account into my other account at a different bank as soon as I receive it... guaranteeing it stays with me and can't be clawed back
When selling, despite knowing it can't happen, I still always transfer the money out of my account into my other account at a different bank as soon as I receive it... guaranteeing it stays with me and can't be clawed back
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