Selling a car to an overseas buyer.

[Pringles]

I would be grateful for advice from anyone who has sold a car to an overseas buyer.

I am aware of the well documented scams but I would like to know how others would expect to receive payment in the most secure way from a buyer from abroad?

Any advice would be appreciated.

 

[renault12ts]

I would be grateful for advice from anyone who has sold a car to an overseas buyer.

I am aware of the well documented scams but I would like to know how others would expect to receive payment in the most secure way from a buyer from abroad?

Any advice would be appreciated.

Cash. But you will need to be able to account to the bank if lodging a large amount. Best thing is to have the buyer lodge it into your account at the bank, they can then do the money laundering procedures with him.

 

[EDZ649]

It depends on whether or not they intend to collect it in person. If so then cash on collection as with any car deal.

I recently sold my E430 to a buyer from Germany through ebay, he paid me a deposit of £100 via paypal and then cash when he collected.

If he is asking for you to ship it then make 110% sure the funds are cleared in your account and moved to another account before releasing the car.

 

[Colin_b]

Be aware that 'cleared' can be several weeks for some non-mainstream banks. So take extreme care.

 

[allias]

Watch out for scammers. I lost $2000 that way. DO NOT ACCEPT CHEQUES AT ALL!!!

Watch out for paypal as some ppl got ways to load money to your account and "ask for refound" for much bigger amount. (dont know how but it happened to my friends).

Cash on collectiong is the BEST WAY. Check every possible way your notes. Ideal its better if you pass on overseas buyers... that way you minimize risk of getting robber.

Be very, very cautious. I wasnt and I lost money.

 

[Vlad]

Ive sold a couple of cars abroad and received payment by Bank Transfer and everything was fine.

Just make sure that you know which bank its coming from and from which country....be suspicious if its coming from a less well known bank and from any country known for being a bit suspect.

Talk to your bank and get them to check out the payment when it arrives and get them to confirm in wirting that its all legit.

 

[moonloops]

If fraud is involved then cheques never technically clear until after 7 years - may be more depending on the bank.. I could stand corrected though.

 

[allias]

If fraud is involved then cheques never technically clear until after 7 years - may be more depending on the bank.. I could stand corrected though.

I think you talking about 7 weeks.

 

[Matt32AMG]

I think you talking about 7 weeks.

No, it could well be seven years... before you catch up with the turkey who just stiffed you for several thousand pounds, by which time he's already left the country of origin, usually Nigeria, and has established himself as the Mr big in a lottery syndicate based in Holland.

Unless its a wire or BACS transfer and the funds have been cleared by your Bank, also with a written signed contract of sale between both parties, don't do it.

 

[Mike320]

I sold my bmw 635csi to a collector in Hong Kong last year, I initially received a 50% down payment via bank transfer. After I confirmed with my bank that the funds were cleared & irreversable I emailed the seller a scan of the V5 so he could begin the registration process. I then waited for the balance tho clear into my account, the buyer instructed a shipping agent & sent me their details. Then all I had to do is drive the car to the agents depot in Southampton and sign it over. As a precaution I also sent the dvla a letter informing them of the date/time and address which it left my posession.

I also made a point of asking the buyer to phone me to discuss arrangements, there are scammers out there but also genuine buyers. As long as you cover all risks then you should be fine.

 

[NISFAN]

CASH? Depends on the amount I suppose, but a chap offered to pay for a car of mine with cash. £14,000 in cash.

I said no way, unless he walks into my bank with the cash and we both hand it over to the teller for a deposit into my account. I didn't even want to handle the money.

Didn't want the chance of him handing over the cash in a remote location, and suddenly a couple of heavies appearing out the shadows mugging me. Where would you stand with in that scenario? Unless you could prove the muggers were tipped off by the buyer, he would have gotten away with it.

I would imagine a bankers draft woud work internationally too, so long as it is a well recognised bank? Take the buyer to your own bank and deposit the cheque and ask your bank to verify on the spot that it is not a stolen BD (They will contact issueing bank for verification). I may be wrong, but I don't believe a BD can be recalled, as it is the bank itself that issues the BD after satisfying itself that all is OK.

 

[Spinal]

I've always been a fan of cash - most banks will allow you to do your transaction on their premises, and if the sum is reasonable, they will even arrange for a room & a teller to assist you. That way the teller counts the cash, deposits it straight into your account and you sign over the V5 & sales contract there and then... All my cars have been bought cash - it's great if you both bank at the same bank, so you ask the teller to withdraw £20k and then hand it over and everyone's happy.

Cheques I wouldn't touch with a bargepole... too risky. Many banks will "clear" a cheque, only to find weeks later that the orginating bank account (or even bank) doesn't exist - only to then take the funds out of your account.

I've heard rumours of wire transfers being reversed a few weeks after the transfer... But this isn't first hand experience so I'm not sure...

M.

 

[crockers]

When I sold a car we went to the buyers building society where he obtained a B.Soc cheque in my name and handed it over to me on their premises..

As for depositing large amounts of cash in a bank..

If it is not your branch they will ask you for identity etc ...they may make a comment like "have you won the lottery" or something - but if they are suspicious they ARE NOT ALLOWED TO SAY SO. That is called tipping off and is a punishable offence. If it is your own branch they will just take the cash - again you may get the flippant question but again if they are suspicious of the money they wont question you. They will just fill in a form and pass it to their ML dept. All the bank staff have to do (by law) is report a suspicion - nothing else. That all happens behind the scenes.

Well it used to unless legislation has changed over the past few years.

 

[Chattonmill]

When I sold a car we went to the buyers building society where he obtained a B.Soc cheque in my name and handed it over to me on their premises..

I have done this before and it works well.....unless you live in an area like me where the closest bank is 20 miles away
Do not accept a bankers draft or B.Soc cheque unless you see it being drawn. My brother did this and it turned out to be stolen. B.soc would not honour and insurance didn't want to know as he had handed over the keys and docs.
He got lucky as the 'buyer' tried to sell it in a pub cheaply and the guy he tried to sell it to invited the police to turn up at the hand over

 

[NISFAN]

I have done this before and it works well.....unless you live in an area like me where the closest bank is 20 miles away
Do not accept a bankers draft or B.Soc cheque unless you see it being drawn. My brother did this and it turned out to be stolen. B.soc would not honour and insurance didn't want to know as he had handed over the keys and docs.
He got lucky as the 'buyer' tried to sell it in a pub cheaply and the guy he tried to sell it to invited the police to turn up at the hand over

Not necessary to see it being drawn, your own bank can verify if it is genuine or not. Obviously need to deposit it and get verification before handing over car.

 

[Pringles]

Thank you all for the great advice given here. Some really practical ideas that will be very helpful if the transaction goes ahead.

 

[Vlad]

Never accept Foreign Bankers Drafts.....its bad enough taking a UK bankers draft.

Infact you can normally call somebody's bluff regarding drafts by saying that if the funds are in their bank then they might as well send it by bank transfer. If they go all funny on you and make lots of excuses, you can then make a judgement call as to how you proceed next

 

[NISFAN]

Bankers draught is much safer than a bank transfer.

 

[Vlad]

I think not......very prone to forgeries and with foreign ones, it can take months for the forgery to be uncovered, ie once it has finally got back to the country of so called origin and even though its shown as cleared in your bank account, the bank will automatically debit it back if it turns out to be forged.

If its a UK bankers draft the best thing you can do is to get the person paying it across to give you the issuing branch and telephone No and a contact at that branch and then you can give them a ring and confirm that they issued the draft.

 

[NISFAN]

News to me, a bankers draught is a cheque backed by the bank, as mentioned earlier, as long as you do the deal at your own bank, and get them to phone and verify the BD is legit you are in the clear. Can't see how anyone can dupe you with a forgery in that scenario.

In contrast, I deposit a bouncy cheque for 15 billion pounds into my bank acc. as soon as the it gets checked in (not cleared yet) it can show on my balance. I then transfer what you want for your car, seems to go through, but when my bouncy bounce bounces your screwed too, as the transfer gets returned. Although this method is more difficult now, as banks are a little sharper, it can still happen. I would not release a car on a bank transfer, until maybe 10 working days later, and all is ok.