Private sale - payment options and scams

[bolide]

1. Cheque. Can clear and then be pulled back up to 6 months later if fraudulent.

This isn't the case any more. The banks introduced a 2-4-6 rule a year or so ago. After 6 days it can't be recalled

There are (or used to be) three types of bank transfer, BACS, CHAPS and International. They all have different rules about whether they can be reversed

Online transfers are ideal during the week. If both banks are members of the Faster Transfers scheme - and most high street banks are - then the transfers show up pretty much instantly. You'll have to check with your bank as to whether they can be reversed

Nick Froome

 

[Alf Barnet]

There is another option - drive round some local independent dealers, and just see if they are after stock - might be a 500 - 1000 less than you were expecting, but no messing around or advertising costs either.

 

[harvin1975]

There is another option - drive round some local independent dealers, and just see if they are after stock - might be a 500 - 1000 less than you were expecting, but no messing around or advertising costs either.

Yup, did that Alf. Dealers getting back to me tomorrow, but managed to sell my car this evening! After an hour on the phone the gentleman has agreed to pay me a deposit of £650 via bank transfer to my account as we agreed collection towards end of August. Rest will be cash on collection paid directly into my bank as per earlier recommendations.

 

[harvin1975]

But you tend to get a feel for the buyer, so use common sense

Very true.

 

[John]

But pay direct into bank while both there.
I took £14000 cash for my A6 and £400 of it was snide.
Luckily the guy was genuine, he was a landlord and lived locally, he said he had been collecting the cash for a year and often got the fake, so he came back over and sorted me out.

I had the same thing almost exactly 10 years ago now.

Sold a car for £18k and asked for cash.

Everything was cool except 3 20s were duds. Cashier highlighted them. The buyer asked for them back and cashier refused. Buyer wasn't happy about that... but tough - that's why I made him pay cash in to my account.

Everything else had a "well, it can be reversed if this happens"-type doubt , or people didn't know, so I went with what I thought was the safest way.

 

[gaz_l]

I sold my first Subaru years back and the bloke paid cash (all non-sequential used stuff), I checked a slack handful with an anti-forgery pen and let the rest go.

While I was counting it out, every pile seemed to have extra notes in, so I thought "I'll let this ride".

I'd let the bloke chip me £150 on the price, for form's sake. When I took the cash down to the bank, not only did it all go through on the nod, but he'd paid me £230 more than we agreed, or £80 more than the asking price! Obviously he wasn't very good at counting. Still, I sold him a very good car (only sold it because it was my house deposit, I'd just driven round in it for 12 months..) so I didn't feel too guilty.

Cheers,

Gaz

 

[gIzzE]

This isn't the case any more. The banks introduced a 2-4-6 rule a year or so ago. After 6 days it can't be recalled

There are (or used to be) three types of bank transfer, BACS, CHAPS and International. They all have different rules about whether they can be reversed

Online transfers are ideal during the week. If both banks are members of the Faster Transfers scheme - and most high street banks are - then the transfers show up pretty much instantly. You'll have to check with your bank as to whether they can be reversed

Nick Froome

That is true, however, if the account is a hacked account they can pull it back whenever.

But how many people would go to those lengths, it makes no sense.

Why would you show your face, then put in a false address for the V5 etc. Much easier to just buy a gadget off eBay for £100 that allows you to drive a car off when no one is looking.


That is why I said I think cash is the biggest risk, not because I think someone will try and pay in dodgy notes, but many won't even realise that is what they have.

 

[A-AvantGarde]

Bank transfer or cash. Never had any issues with either. I did take a photocopy of the buyers driving licence when I sold my brothers Porsche - I asked the buyer to bring photo ID, he understood and didn't have any qualms.

As said above you can get a feel for people and sometimes some people just don't sound or act right.

 

[Bonecho]

I had someone try to pass a wad of £50's to me that were missing the silver thread once.

A bank transfer, plus a look at a passport and a bank statement would keep me happy.

 

[nuneatongraham]

Hi,
i have just bought a car via Google Payment System.
Because the seller lived at the other end of the country to me all i had to go on was hi res images and detailed history of the car.
The deal we have struck via the above is i have paid the agreed price into the Google Payment Account where the money is held.
He is shipping the car to me and on receipt of the car i have 3 days to asses the car to see that everything is ok and as described.
After 3 days i then inform Google if i want to keep the car or send it back.
If i decide to reject the car it is picked up at the sellers expense and when he receives the car back Google refund my money.
If i choose to accept the car Google pay the seller the amount agreed.
I do not have to pay any fees for the transaction.
Google create a contract and verify Seller and Buyer address details and the car details.
Never done a transaction like this before but it looks safe as it can be.
I will update when the transaction process is complete.
Graham

 

[maha]

when i bought my car

When i bought my car i made a bank transfer on the spot, it happens instantly.

They buyer was able to check the money was in his bank online while i was there there is no way i would have taken that much cash out and walked around with it unless there was a big discount included.

Plus the hassle to arrange with the bank to allow me to take that much cash out is a pain.

 

[harvin1975]

Another question on topic.
My current insurer wont quote me on my new car so i'm going to take out a new insurance.
However, i was told by my insuarnce company that i need to end my current insurance on my car before buyer collects so buyer can insure themselves.
Er - doesnt make sense to me. If i end insurance i'm not insured to drive the car to collect him from the airport.
How's this meant to work.

They'll be a break of a couple of weeks from the sale until i get my new car registered and insured through another company.

Any advice?

 

[TheFoX]

If the seller has Faster Payment facility on their online bank account, you can have the funds within two hours, if not immediately. Also, once the funds have been sent, they cannot be withdrawn without your consent. Just make sure that the account number and sort code is correct, otherwise someone else will get the funds instead, and it can be a nightmare trying to get those funds returned.

I don't mind cash, as long as it is small amounts, but I am always wary of forged notes. I haven't had many over the years, but it is frustrating when you do find one, and lose its value without compensation.

What about a bankers draft? As long as you can prove that it is genuine, then it should clear without issue.

I suppose the best advise I can give is to validate the buyer/seller. Do you know where they live? Are they on the Electoral Register, or do they have recent Utility Bill or Council Tax bill to prove their address? Do they look like their photo ID?

Genuine people have nothing to hide, whereas the crook uses deception and has everything to hide. Use your gut feeling. Does it feel right? Or does it feel too good to be true?

As for scams, the only one I would be really worried about is when a car seems to be too good to be true. You turn up with the cash to buy an absolute bargain, only to be mugged by a gang using a bargain to lure the unwary. Never meet at a location other than a residential property, preferably the owner's home. Garage blocks and supermarket car parks should be a no no. Again, this is down to validating the identity of the seller.

Hope that helps.

 

[MBDevotee]

Another question on topic.
My current insurer wont quote me on my new car so i'm going to take out a new insurance.
However, i was told by my insuarnce company that i need to end my current insurance on my car before buyer collects so buyer can insure themselves.
Er - doesnt make sense to me. If i end insurance i'm not insured to drive the car to collect him from the airport.
How's this meant to work.

They'll be a break of a couple of weeks from the sale until i get my new car registered and insured through another company.

Any advice?

Re-insurance it's easy - just do exchange during week, then cancel insurance when you get home and he's happy to proceed with the deal. He can then commence his insurance on it there and then by calling his company.

Re- payment. 1) There are more forged 20's than 50's about - so you're actually better off taking 50's...

But, how much are we talking?? I would suggest if it's £3000 - £4000 - other than normal and obvious care, I wouldn't worry - if you're going to con someone it's better to con them for £10,000 than £1000... so I doubt anyone would bother.

If the car is worth £10-15k then taking cash is a risk - and you do need to be careful. Use a forge pen and a uv checker (on ebay very cheap) but do NOT take it all in a bag to the bank and pay it in. The bank will accept it and will wrap a band around it and note who paid it in - then later will check it - if it's fake they do have the right to phone you up and tell you how much is fake - so you lose the money. You could ask them to check it when you pay it in, but they may not be prepared to if there is a queue.

I think bank transfer is best, but don't fall for this scam:-

Guy pretends to do a bank transfer in front of you, but he has a mate he's sent the bank details to who walks into a branch of your bank and pays a cheque (duff) in.

The payment shows 10 mins later and you think it's a transfer - but it's not and the cheque will then bounce....

Perhaps best way is just to take the cash, count it, check it as best you can and then keep it somewhere safe.

Take it over the next few days to several branches of your bank in £2000 kind of amounts - they won't then bunch it up but will put it in the drawer with the rest of the notes and it won't be checked again.

 

[harvin1975]

Payment no longer an issue. I'll be accepting cash on the day that will be paid directly into my bank with buyer at my side.

Main issue was around insurance. But noting comment to run insurance up until deal done and then cancel seems the sensible option. Main concern with this would be latency in removing me as primary owner and buyer then phoning up his insurance company to add himself - usually this stuff isn't immediate.

 

[edtzxr]

If they will go to the bank with you they can use their card to make the payment over the counter there and then. Basically they put their card in the amount and thier pin then you put yours in and your pin money gets transfered and the bank confirms and give you a reciept I sold a £7500 GSXR this way and have done the same with 2 sub 2k cars since.

 

[Conquistador]

Cash always. Whether it's a £100 car or £10,000. YOU count the money and hold on to it at all times once a price has been agreed and don't let the buyer distract you when you are carefully counting it.

These days it's dead easy to use an instant transfer when you are there buying the car. I recently flew up to Glasgow from Essex to buy a car and drive it 500 miles back down south. Didn't want to take £thousands in cash on a flight with me so transferred it while I was having a cuppa in the sellers' lounge, he checked it using his mobile banking and that was that.

 

[gIzzE]

Hi,
i have just bought a car via Google Payment System.
Because the seller lived at the other end of the country to me all i had to go on was hi res images and detailed history of the car.
The deal we have struck via the above is i have paid the agreed price into the Google Payment Account where the money is held.
He is shipping the car to me and on receipt of the car i have 3 days to asses the car to see that everything is ok and as described.
After 3 days i then inform Google if i want to keep the car or send it back.
If i decide to reject the car it is picked up at the sellers expense and when he receives the car back Google refund my money.
If i choose to accept the car Google pay the seller the amount agreed.
I do not have to pay any fees for the transaction.
Google create a contract and verify Seller and Buyer address details and the car details.
Never done a transaction like this before but it looks safe as it can be.
I will update when the transaction process is complete.
Graham

Is this not a very well known scam?

I enquired about loads of cars recently, and 4 of them were scams, but sort of knew it was beforehand. And every one of them were the seller assuring me that the money would be held by either escrow, paypal or google.

It was amazing that as soon as I said "I am interested and have decided to come and collect myself as my wife and I will make it a weekend away in Edinburgh/Brugge/Brussels and then drive the car home." they suddenly lost interest.