Selling car privately - accepting payment

darich

I've just advertised my car for sale privately and wondered what the best way to accept payment would be.
I could obviously insist on cash but i'd need to check every note while counting so no counterfeit money was passed to me.
Or i could ask for a bankers draft but it's been years since I've seen one. how would i be able to tell it's genuine?
Last resort would be take the buyer to the bank and get him to deposit the money into my account and then give him the keys.
what do others normally do when accepting a 5 figure sum of money from someone i've never met before?

thanks

jeannieblue

Cheque - you can do a quick clearance (add that on to cost of the car ) and once it has cleared, hand over the keys and paperwork. Cash is better and quicker obviously, but the buyer may be acquiring a loan to purchase car, hence the cheque - but make sure it clears first before handing over the keys etc.

flyingscotno1

darich wrote: »

I've just advertised my car for sale privately and wondered what the best way to accept payment would be.
I could obviously insist on cash but i'd need to check every note while counting so no counterfeit money was passed to me.
Or i could ask for a bankers draft but it's been years since I've seen one. how would i be able to tell it's genuine?
Last resort would be take the buyer to the bank and get him to deposit the money into my account and then give him the keys.
what do others normally do when accepting a 5 figure sum of money from someone i've never met before?

thanks

I was going to say cash is usually good but equally I've never sold a car privately for 5 figures and with that amount, cash might not be realistic and other methods might need to be looked at.

Bankers Drafts are no more secure than a cheque really- yes the funds are there at the bank, but only if it is genuine and not a forgery. You can do special presentation IIRC, but it is a lot of fuss. Electronically through CHAPS might well be the best way to do it and if your uncomfortable at any stage pull out the sale and go on instinct.

LandyAndy

If you ask for cash arrange to go to your bank with the buyer and hand over the documents when the bank has accepted the cash.

For a banker's draft you can always call the issuing bank and ask for confirmation that the draft is good.

darich

LandyAndy wrote: »

For a banker's draft you can always call the issuing bank and ask for confirmation that the draft is good.

Thought of doing that but then what if the buyer examines the car at the weekend then comes back with the money on Monday evening at 8pm?

Quentin

Tell the buyer in view of the amount involved you cannot release the car until you know the draft has been verified, therefore he must come at a time when you can go to the bank. Alternatively, he can leave the draft Monday night and come back for the car on Tuesday night if he can only make evenings.

Wig

I would only accept a bank transfer of funds, I would not accept a cheque or bankers draft as both can be recalled. And I would transfer the money straight out of that account to be on the safe side.

Or I would accept a cash deposit directly into my account whilst we both stand in the bank.

I would also issue two receipts for each party, and the buyer would sign my copy as having recieved the car "without warranty as to condition".

iolanthe07

If the buyer lives locally, and you can verify his/her address, you should be OK with a banker's draught.

darich

I lke the idea of phoning the bank to confirm the draft is genuine although that obviously only works during office hours.
Good idea Wig to transfer out of that account to be safe.
I also like the idea of going into the bank together and depositing the cash straight into my account - I'd even get the bus home to make it easier!!!

thanks again