Selling a car privately involves a significant amount of trust. You've likely spent time crafting an appealing ad, taking great photos, and finally found a buyer. Reaching an agreement on price is a win, but securing payment safely is the final hurdle. This article explores the safest and most secure methods for accepting payment when selling your used car, along with tips on what to avoid.
Document Everything:
It’s crucial to maintain written and signed evidence at every step, especially when money is exchanged. Once you've agreed with a buyer, put the agreement in writing. This protects both parties. A basic agreement could include:
- Date of agreement:
- Buyer Name:
- Buyer Address:
- Contact Phone:
- Contact Email:
- Agreed Price:
- Vehicle Description: (Year, Make, Model, Color)
- VIN Number: (Available on registration papers)
- Registration Number:
- Deposit Amount (if any):
- Payment Method:
- Date of Transaction:
- List of Inclusions: (e.g., floor mats, towing kit)
- Agreed Repairs: (e.g., chipped windscreen, rear tires)
- Signatures: (Buyer and Seller)
Once you have a written agreement, discuss the preferred payment method with the buyer.
Here are four of the safest ways to receive payment for a used car:
1. Online Bank Transfer:
The buyer transfers the agreed amount to your account before picking up the car. Crucially, never hand over the car before you see the funds cleared in your account. A common scam involves the buyer showing you their phone with details of a completed transfer, but then cancelling it before the funds clear.
2. Instant Bank Transfer (In-Branch):
This works best if you and the buyer use the same bank. Meet at a branch and have a teller transfer the funds from their account to yours instantly. This is a very secure option, done in a public environment with CCTV. If you and the buyer bank at different institutions, consider temporarily opening an account at their bank for this transaction. It's often quick, easy, and free to open and close accounts.
3. Cash:
Cash is instant, but impractical for large sums. Both you and the buyer will likely need to visit a bank (them to withdraw, you to deposit). You might as well complete a direct transfer as described above. This avoids counting large amounts of cash in a public place and the risk of carrying a large sum of money.
4. Bank Cheque:
The buyer obtains a bank cheque from their bank for the agreed amount. The cheque and keys are exchanged. While generally secure, bank cheques can be cancelled, and it takes up to three business days for them to fully clear. A bank cheque differs from a personal cheque, which should never be accepted, as it can bounce.
Six Other Things to Keep in Mind When Selling a Car:
- Ask for a Cash Deposit (10%): A deposit demonstrates the buyer's seriousness. Provide a receipt and be prepared to refund it if the sale falls through.
- Don't Use PayPal: PayPal is not secure enough for large transactions like car sales and doesn't offer seller protection for vehicles. Fees can also be significant.
- Don't Use Cryptocurrency: While cryptocurrency might become a viable option in the future, it's currently too risky for most people selling cars.
- Avoid Other Online Escrow Services: Websites that offer to hold the buyer’s money are often expensive and not worth the cost.
- Don't Accept a Payment Plan: Never release the car until you have received the full agreed amount.
Never Transfer Money to a Potential Buyer: Scammers often devise creative scenarios to trick you into sending them money. For example, a buyer claims to be at sea and can't call. They want the vehicle delivered to their home before they return, but ask you to pay a freight company via Western Union on their behalf, promising to reimburse you.
They'll send a fake online transfer receipt, but the funds will never arrive, and you'll have lost your money. Remember, if an offer sounds too good to be true, it probably is.
By following these guidelines, you can ensure a safe and secure transaction when selling your car privately.
