Selling privately and safely

[randomman]

This'll be the first time I'm selling a car privately in an amount I wouldn't expect cash, I'm looking for some advice on how to make sure this is done as securely as possible. Apart from buying a house I don't think I've ever done any significant transfer of funds electronically (and the solicitors sorted that!)

To further complicate things about 60% of the car's value is on finance.

I'm worried about cocking something up and being scammed on the technological side of things. Assuming a sale has been agreed what should the next steps be? Presumably a call to the finance company to pay the settlement figure. Would there be any come back on me if some shenanigans were pulled here (eg paying with stolen card) or is it the case that if the finance company says it's cleared, it's cleared?

With the remainder of the balance I'm going to need to accept a transfer, similar question again, I'd probably instinctively run a mile if words like Paypal or Western Union were mentioned, but if, for example they wanted to pay from a normal UK bank account to my normal UK bank account, what do I need to be aware of? I presume there will be some form of clearing time, but at what point can I say the funds are 100% irreversibly there?

Finally, am I hamstringing myself doing it at a weekend where I'd probably be unable to ring up and speak to a human at my bank?

Thank you kindly for any advice given.

[MOBB]

Have you considered the car buying sites, not sure if they are still offering strong money?

I’ve done this privately before and the buyer paying the settlement figure direct to the finance company and paying you the equity is the standard method I think, but I still find it nerve wracking!

Faster payments does make things a bit easier nowadays though

[monthou]

Last time I bought I did a bank transfer from my phone. Then I sat around arranging tax and insurance, by which time the seller was able to see the money in his account. Easy with faster payments As the seller I wouldn't release a car (anything) until I saw the money in my account.

[randomman]

monthou said:

Last time I bought I did a bank transfer from my phone. Then I sat around arranging tax and insurance, by which time the seller was able to see the money in his account. Easy with faster payments As the seller I wouldn't release a car (anything) until I saw the money in my account.

Would I be correct in saying that if they pay by faster payments (which most of the big UK banks seem to do) then it cannot be undone later?

[monthou]

randomman said:

monthou said:

Last time I bought I did a bank transfer from my phone. Then I sat around arranging tax and insurance, by which time the seller was able to see the money in his account. Easy with faster payments As the seller I wouldn't release a car (anything) until I saw the money in my account.

Would I be correct in saying that if they pay by faster payments (which most of the big UK banks seem to do) then it cannot be undone later?

That's certainly my understanding. A quick google says once it's in it's final. Your bank could confirm.

[randomman]

monthou said:

That's certainly my understanding. A quick google says once it's in it's final. Your bank could confirm.

Thank you, they seem to echo the security. Is it generally considered fair to ask that funds are sent this way? I just wouldn't want someone turning up with an old building society savings account or something that doesn't do faster payments?

Also, would does anyone have any insight into the question about my liability if something untoward happened to the payment to the finance company?

[monthou]

randomman said:

monthou said:

That's certainly my understanding. A quick google says once it's in it's final. Your bank could confirm.

Thank you, they seem to echo the security. Is it generally considered fair to ask that funds are sent this way? I just wouldn't want someone turning up with an old building society savings account or something that doesn't do faster payments?

Also, would does anyone have any insight into the question about my liability if something untoward happened to the payment to the finance company?

As a buyer I was comfortable being asked for payment by bank transfer. Faster payments meant I could do it there and then, that's all. In olden times I guess I'd have come back later.
No idea on finance company stuff, sorry.

[E63eeeeee...]

I did the bank transfer thing a couple of times in 2020. My experience was that it can take several hours for the bank to complete checks for security or money laundering or whatever, and that the people you speak to on the phone are full of st about where the money actually is and when it will arrive in the recipient's account (or at least are looking at the same consumer-facing system as you are so they don't really know). One of my transactions took a couple of hours on a Sunday and only got resolved by escalating until I got to talk to someone who knew what they were doing and who could approve the transaction to go into the next hourly batch. The second transaction was around 7pm, and ended up, after a lot of lying that the transfer had happened and the problem was the other bank, with my bank saying it couldn't be completed until the following morning. So with my lift having gone, and the seller not unreasonably refusing to let me take the car without paying, and not fancying walking 35 miles home, I did the transaction on PayPal which cost me more than £100 for the PayPal fee.

This a bank that is regularly talked about as having the best customer service.

So, I'd suggest: do it in office hours, more chance of resolving any problems quickly, do not believe what the call centre people say, and do not let the car go until the money is in your account - I showed the seller on my app that the money was gone but still cancelled the transfer.

[lost in espace]

Settle the loan so the car is free of finance. Anything else is messy, asking them to clear the finance etc. and it weakens your hand.

If you do a bank transfer make sure it is for a high street bank at both ends, Mozno,Tide, etc are all useless and you will wait hours.

The other thing I recommend is telling the viewer that a single person can only view the car, if they turn up with mates don't answer the door. 2 of them, then make one wait in the car. Petty perhaps, but it will save you from 4 guys pressuring you into selling whilst they put oil in the coolant tank. And if they make an appointment, then don't turn up, then ring at 8pm to get there in 5 minutes don't let them come. You will feel relief at getting a viewing and more inclined to sell. And make sure the car is blocked in.

[monthou]

lost in espace said:

Settle the loan so the car is free of finance. Anything else is messy, asking them to clear the finance etc. and it weakens your hand.

If you do a bank transfer make sure it is for a high street bank at both ends, Mozno,Tide, etc are all useless and you will wait hours.

The other thing I recommend is telling the viewer that a single person can only view the car, if they turn up with mates don't answer the door. 2 of them, then make one wait in the car. Petty perhaps, but it will save you from 4 guys pressuring you into selling whilst they put oil in the coolant tank. And if they make an appointment, then don't turn up, then ring at 8pm to get there in 5 minutes don't let them come. You will feel relief at getting a viewing and more inclined to sell. And make sure the car is blocked in.

Two people viewing is eminently reasonable. A buyer will usually show up with a lift, often that lift is partner - ie involved in the decision - or 'expert' mate.
Being told one person only would sound odd and put me off, I doubt I'm alone in that.