Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • chrisw
    • By chrisw 9th Jan 18, 1:59 PM
    • 1,655Posts
    • 905Thanks
    chrisw
    Is bank transfer safe?
    • #1
    • 9th Jan 18, 1:59 PM
    Is bank transfer safe? 9th Jan 18 at 1:59 PM
    Hi,
    I'm going to buy a car privately for around £4k. I'm not bothered about picking it up for a few days, what's the best way of paying for it?

    The easiest for me would be to get the sellers bank details and do a bank transfer but then the seller would have my money and the car.

    I could pay by cheque and wait for it to clear but again they have my money and car.

    Bank drafts also seem susceptible to being faked.

    I could get cash out but it seems to be difficult to get (from HSBC) and there seems to be concerns around fake notes.

    If the car is registered at the sellers address would bank transfer be safe?

    Buying privately is more stressful than I thought.
Page 1
    • Money maker
    • By Money maker 9th Jan 18, 2:02 PM
    • 4,895 Posts
    • 11,150 Thanks
    Money maker
    • #2
    • 9th Jan 18, 2:02 PM
    • #2
    • 9th Jan 18, 2:02 PM
    No bank transfer until you have the car. No one can tell you its safe to send money in a transaction that cannot be cancelled to a stranger when you dont have the goods.
    Please do not quote spam as this enables it to 'live on' once the spam post is removed.

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite!
    • King_Nothing
    • By King_Nothing 9th Jan 18, 2:08 PM
    • 751 Posts
    • 965 Thanks
    King_Nothing
    • #3
    • 9th Jan 18, 2:08 PM
    • #3
    • 9th Jan 18, 2:08 PM
    Only £4k, I'd pay cash if the seller will accept that.
    • IanMSpencer
    • By IanMSpencer 9th Jan 18, 2:20 PM
    • 1,291 Posts
    • 975 Thanks
    IanMSpencer
    • #4
    • 9th Jan 18, 2:20 PM
    • #4
    • 9th Jan 18, 2:20 PM
    You can do a bank transfer while you wait these days. The 2 hours is a theoretical delay to allow for glitches but I would see the car, do the transfer and then fill in the documents while the other person checks their balance.
    • House Martin
    • By House Martin 9th Jan 18, 2:23 PM
    • 938 Posts
    • 828 Thanks
    House Martin
    • #5
    • 9th Jan 18, 2:23 PM
    • #5
    • 9th Jan 18, 2:23 PM
    I bought my last car , 6k , with my debit card. No probs and straightforward.I would have thought all big garages can process debit/credit cards
    • Iceweasel
    • By Iceweasel 9th Jan 18, 2:25 PM
    • 4,296 Posts
    • 3,140 Thanks
    Iceweasel
    • #6
    • 9th Jan 18, 2:25 PM
    • #6
    • 9th Jan 18, 2:25 PM
    Most bank transfers go through in a matter of minutes and it's not a hassle at all - very easy.
    • tykesi
    • By tykesi 9th Jan 18, 2:38 PM
    • 1,926 Posts
    • 2,676 Thanks
    tykesi
    • #7
    • 9th Jan 18, 2:38 PM
    • #7
    • 9th Jan 18, 2:38 PM
    I sold a car last year, the guy came to see it, test drove then made the bank transfer while we sorted the paperwork. In the time it took to fill the V5 in the money was in my account.
    £2018 in 2018 - £416.84

    £2017 in 2017 - £7097.88

    £2016 in 2016 - £3087.89
    • agrinnall
    • By agrinnall 9th Jan 18, 2:42 PM
    • 19,174 Posts
    • 14,837 Thanks
    agrinnall
    • #8
    • 9th Jan 18, 2:42 PM
    • #8
    • 9th Jan 18, 2:42 PM
    Bank transfer is generally fine, but there are no guarantees on it taking minutes or even hours - end of next business day is all you can rely on. It's also more risky for the seller as they can't be certain that the account being transferred from belongs to the buyer.

    I would find out who the seller banks with, and if you are lucky they'll be with the same bank as you and you can go into a branch and do an instant transfer between accounts over the counter, I did this as long ago as 2000 when selling a car.
    • cjdavies
    • By cjdavies 9th Jan 18, 4:21 PM
    • 2,977 Posts
    • 3,091 Thanks
    cjdavies
    • #9
    • 9th Jan 18, 4:21 PM
    • #9
    • 9th Jan 18, 4:21 PM
    Bank transfer on day of pick up at their house (I did the same for my current car).

    I wasn't going to carry £5k on 2 trains and a taxi.
    Last edited by cjdavies; 09-01-2018 at 4:25 PM.
    • DoaM
    • By DoaM 9th Jan 18, 4:40 PM
    • 3,778 Posts
    • 3,837 Thanks
    DoaM
    Do a test transfer first (e.g. £10) to make sure the seller's bank details are correct and to give an idea on how long it takes.

    Then do the transfer of the balance and collect the car. Perhaps you take the keys and V5C and he keeps the car until the transfer completes?
    Diary of a madman
    Walk the line again today
    Entries of confusion
    Dear diary, I'm here to stay
    • weejangus
    • By weejangus 9th Jan 18, 5:19 PM
    • 102 Posts
    • 81 Thanks
    weejangus
    As others have mentioned, bank transfer is fine. It's also worth popping the vehicle registration into the transaction reference so that if anything goes wrong, you can demonstrate that the payment was for that specific car.

    Faster Payments are usually instant. The 2 hour rule is only there to accommodate when a bank puts their Faster Payment system offline. The regulator will only allow them to do this for a maximum of 1 hour 59 minutes (during which time all Faster Payments are held and processed as soon as it is brought back online). So the max time it can take is 2 hours. This usually only happens through the night though.

    Also a good idea (as mentioned) to test that the Faster Payment will go through - there are some banks that have yet to subscribe to the faster payments scheme. I would usually test £1 and make sure the seller can see it in their account. If that works, transfer the rest.

    If something does go wrong and the seller ends up with your cash AND the car (and is not willing to give you either), you can still approach your bank and ask them to recover the funds. It's a little known process called CPR (credit payment recovery). Your bank can request that the funds are frozen in the recipients account. They will be returned to you as long as the recipient is unable to prove to the banks satisfaction that they were entitled to receive the funds - this is where having the cars reg number as the transaction ref will come in handy.

    Hope that helps.

    J
    • DUTR
    • By DUTR 9th Jan 18, 5:34 PM
    • 11,124 Posts
    • 6,354 Thanks
    DUTR
    Hi,
    I'm going to buy a car privately for around £4k. I'm not bothered about picking it up for a few days, what's the best way of paying for it?

    The easiest for me would be to get the sellers bank details and do a bank transfer but then the seller would have my money and the car.

    I could pay by cheque and wait for it to clear but again they have my money and car.

    Bank drafts also seem susceptible to being faked.

    I could get cash out but it seems to be difficult to get (from HSBC) and there seems to be concerns around fake notes.

    If the car is registered at the sellers address would bank transfer be safe?

    Buying privately is more stressful than I thought.
    Originally posted by chrisw
    I trust you have already viewed the car?
    The seller is ok with Bank transfer?
    in 2000 I transfered just under £10k for a car which was 60 miles away, I had already viewed the car , I was in the same mind as you that the guy had my money and the car, but he picked me up from the train station and the transaction went smooth, when selling the car the buyer wanted to pay cash, I told him to return the next day when the banks were open and he could pay it straight into the account.
    At the end of the day you have to be wary whether buying or selling, one hat doesn't fit all.
    • EdGasketTheSecond
    • By EdGasketTheSecond 9th Jan 18, 5:50 PM
    • 380 Posts
    • 215 Thanks
    EdGasketTheSecond
    Hi,
    The easiest for me would be to get the sellers bank details and do a bank transfer but then the seller would have my money and the car.
    Originally posted by chrisw
    And if you pay cash he has your cash and the car if he decides to say that you never handed the cash over. Whatever method you use there has to be some element of trust. If the seller looks 'that bad' that the trust is not there then you'd better look for a different car and seller.
    • knightstyle
    • By knightstyle 9th Jan 18, 6:26 PM
    • 4,547 Posts
    • 1,677 Thanks
    knightstyle
    As others have said Bank transfer on picking up is what I have done twice, no problems. Just make sure you go to their home.
    When I sold a car, over £10k, two big men came with cash! After they had had a good look and drive in the car I insisted we all go to my local bank where the money was counted and checked before I did any paperwork. Again no problems and they turned out to be nice guys.
    • debtdebt
    • By debtdebt 9th Jan 18, 7:07 PM
    • 387 Posts
    • 268 Thanks
    debtdebt
    I bought my last car , 6k , with my debit card. No probs and straightforward.I would have thought all big garages can process debit/credit cards
    Originally posted by House Martin
    It's a private seller.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,037Posts Today

10,014Users online

Martin's Twitter