Safest payment for private sale - perleman
Hi all, I am selling my GTi in the trader. I am nervous about taking payment as have never sold a car before. I expect it to make IRO 6k. Here are my thoughts on payment methods, any feedback appreciated:

Cash - I'd only be comfortable doing this if cash was handed over in my bank (5 mins away & opens Saturday) where I could hand over keys - is this normal / reasonable?

Personal Cheque - Don't these now basically 'never' clear in that even if funds go in to my account, it could turn out to be a fraud & bounce later on?

Bankers Draft - If I take this during the hours of banking or get them to fax it to me at work during bank hours, can I call up the bank while they're open & confirm it's genuine, before accepoting the real thing? As I work 25 miles from home it would be awkward to get home in middle of day to get draft & check it out.

Any feedback appreciated.
Safest payment for private sale - spikeyhead {p}
you both go to the buyers bank in the car being sold.

Do a money transfer there that you can both see. Sort out the docs there and then
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Safest payment for private sale - George Porge
Personally I'd only take cash with identification. You could take a digi pic of them on arrival, noting their car type reg number and leave the camera at home on the test drive / journey to the bank.

You only hear of the transactions that go wrong, 99.999% of people are trustworthy, the biggest problem will be test pilots / time wasters:O(
Safest payment for private sale - JamesH
It has been done to death, so plenty of other material if you trawl the forum.

The workings of the Banker's draft depends on the bank involved. I once received a Barclays one, they refused to verify it as genuine by phone, pretty much stating that if you had any doubts it was best not to accept it. I decided to go to the issuing branch myself in person, where someone behind the counter remebered it being issued. I then proceeded to pay it in at the same branch. Of course, had I known the buyer used the same bank, we could have done an instant transfer in the branch for free, after which the car could be released straight away.

Don't forget CHAPS. I accepted this for another car sold. The buyer initially said ok, but became reluctant after speaking with his father that evening, even though he worked in a branch and could use CHAPS for free as a staff perk. It did go ahead, as he initiated it that morning, I received payment in the afternoon, then he collected the car in the evening after everyone had finished work. I think they were worried about those few hours delay between payment and collection but my view was that it was same day, the car in is the garage out of the way for that time, plus they know where I live. If he paid by draft, I would be at risk of losing the lot for up to a few weeks afterwards and I wouldn't know where he really lived.
Safest payment for private sale - Niallster
Well without going through the whole cheque thing again in short you should only ever accept a cheque from someone whose account is at a UK branch of a UK bank and you should allow at least 10 working days for any problems to emerge, yes I do mean two weeks, I can list the steps in the clearing system if you wish but trust me 10 working days is the minimum time you should allow.
Safest payment for private sale - wotspur
The only time I sold my car, I insisted it was a building society cheque, and I was present whenit was withdrawn, fortunately my mum had an account with the same society, so it was basically transferred straight over, then she paid me later -slightly complicated but safe
Safest payment for private sale - Aprilia
I sell a few cars and now only take cash or a transfer done in a bank - with handover at time of transaction. CHAPS is fine if the buyer will accept it.

UK banks now seem to completely shirk their responsibilities in terms of security, so cheques (can be returned months later according to my bank), paper drafts, building soc. cheques etc are all to be avoided.
Safest payment for private sale - MW
Last one I bought, the chap delivered the car to my house and locked it up. We then went to my wife's Barclays bank (as he also had an account there) and withdraw £9,000 in cash. Barclays then paid this £9,000 as a cash entry (so it can't bounce) into the sellers account. Of course, they did not accually count out the money as we did it together at the counter, so no actual physical cash as such, came out and went in, but he had a cash entry. He then gave me all the papers and keys, and we said goodbye.
I had a car, he had none bouncing money. It was easier as he was a very straight bloke.
Safest payment for private sale - Bill Payer
We then went to my wife's Barclays bank (as he also had an account
there) and withdraw £9 000 in cash. Barclays then paid this £9 000 as a
cash entry (so it can't bounce) into the sellers account.


A friend who works in a bank told me almost exactly the same, although he said to take the actual cash and then hand it back in again.
Doing it in cash isolates the transactions from each other and they can't easily be reversed, although it's still not completely safe. If it turned out the buyer was illegally accessing someone else account then in theory the money could be taken back, but it's a whole heap more awkward than simpley reversing an electronic transaction.
Safest payment for private sale - bell boy
perleman find the buyer first
then take a £200 cash deposit minimum and ask how the buyer wants to pay
then negotiate on how best this is done
remember most people dont like carrying bags of cash anymore
ive had customers who say they havent slept since getting the cash out of the building society the day before and putting it under their pillows
The other thing is people are so tight that they dont want to spend £10 on a bankers draft
You could always open an alliance and leicester personal bank account and use your local post office to pay cash in (if you have a post office locally? )

good luck on the sale

ps be more aware that someone may come to steal your car rather than give you dodgy money so be alert and keep your keys with yourself at ALL times
Safest payment for private sale - LHM
ive had customers who say they havent slept since getting the cash out of the
building society the day before and putting it under their pillows


There have also been disturbing stories of buyers paying in cash, and the seller then being relieved of it shortly afterwards by a couple of 'heavies' on the doorstep....

The problem with being an honest person is that you don't appreciate the depths to which the criminal mind will sink :-(

If you have to deal with cash, do it - as others have suggested - in a bank.
Safest payment for private sale - TurboD
obviously be aware of the 'I'll pay you more and you can refund me the difference trick'.
And 'oh the bank was closed' I get it tomorrow'
Best thing is to know where the buyer lives- and be sure they do.
and have a picture of them
 

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