deposit for private car sale

sush40

Hi,

Went to view a car today sold by a private seller and I really liked it. Only thing is it's still in outstanding finance, but the seller told me he would sort the finance out if i was ready to buy it (car has only been advertised for a week or so). We met at his house, he sounded like a genuine guy and everything else seemed to be in order.
Now I asked if he could hold the car until he sort the finance out, but he's asking for a non refundable deposit of 250pounds.
I'm just worried about paying for this sum to secure the car and then him selling the car to someone else in the meantime.
What should I do if this was happening? If I make a bank transfer for the deposit, i should have his details (name, etc..) would i be allowed to sue him?

Thanks

skintpaul

Offer to pay direct to finance co? They 'own' the title, so technically not his to sell..

londonTiger

MOVE ALONG. plenty of cars in the world. no deposit - get him to clear the finance or dont buy

sush40

I will never buy the car until he clears the finance, i only wondered if it was safe to pay a deposit until he does. Is it safe to pay a deposit to a private if I get a receipt?

Moto2

Safe?

Nothing is safe, you need to make a decision based on what you feel.
If the car really is the one for you and you trust him, go for it.
Although, I'd be looking at halving the deposit he's looking for.

If you don't trust him, walk away

sush40

I had a good feeling about the car and met the guy at his place and he sounded genuine (told me he would sort out the finance straight away, had MOT done just before I came to view the car, etc...) but you can never trust anyone 100% .
It's the first time im buying a car through a private, so my question is, what could I do if the seller ran away with the deposit? I'm considering paying for a small deposit but not sure what kind of receipt I can get if I pay it by bank transfer; is it better to do it face to face, pay cash and get a receipt at the same time to get both signatures?

macman

You don't get a receipt for a bank transfer, so use cash and write your own receipt, 2 copies, each party signs.
If he steals your deposit the usual sanctions are open to you, but if you don't trust him, don't proceed.
Payment of a deposit binds you both to the purchase/sale, as it confirms the making of a contract.

Foxy-Stoat_3

Whats the price of the car.....is it like half of what it should be?

You should HPI the car first and call the finance company with the reference number on the report and satisfy yourself that they have an interest in the car, get them to email a copy of the settlement amount to you and the seller, they may not be willing to email you though.

Get the seller to open the email in front of you and you call the finance company direct to pay them the outstanding and give the seller the balance in cash, if any. No need for deposits. Get a receipt for the full amount detailing how you paid and to whom.

If he insists that you have to pay a deposit and he will settle the finance then he is probably trying to scam you so walk away.

gazfocus

I guess it depends on the value of the car, but I would be offering £100 deposit and I would state that it is to be returned in full if the seller decides to withdraw from the deal. I get why he's saying 'non refundable' as that implies that if you change your mind, he keeps your deposit, however, you need it in writing that should he change his mind, you get your deposit back.

sush40

He only asked for a deposit because I didn't want to pay the car before he cleared the finance, and also so I can sort out my insurance in the meantime (insure the car before I drive it home).
In his text he says '' I would need a deposit paid into my bank before I turn down anyone else viewing the car or taking it off the advertising sites'' which I think is fair enough.
Anyway I cant insure the car before I pay for it I suppose? so couldnt be able to drive it right after paying him?

londonTiger

Foxy-Stoat wrote: »

You should HPI the car first and call the finance company with the reference number on the report and satisfy yourself that they have an interest in the car, get them to email a copy of the settlement amount to you and the seller, they may not be willing to email you though.

you are right they wont email the op, various ethical and moral issues here long with the data protection act.

hey will only talk to you bout the debt if you become the registered keeper