Buying a used car is an exciting time for both the buyer and the seller. However, one of the most awkward parts of the process is paying for it and knowing what way is best in order to have a safe transaction where both parties are happy. Below is a few ways that you can do it safely.
If you want to pay for the used car in cash then it is advised that you meet the buyer in a bank, where you will be able to prove the notes are genuine, giving reassurance to the seller and enabling you to pay them immediately. It also means that you are safe and know that you are around people and cameras are on you, so nothing bad can happen.
If you meet in a bank where you both have an account, then that is even better as you will be able to withdraw the money and give it to them to pay in, all in one place. If you are withdrawing the money from another bank beforehand, be careful when walking around with this large sum of cash.
Check with your bank to see if there is a limit on how much you can withdraw at once. Also, ensure that your seller has done the same with how much they can pay in.
For large payments, there is the option of using CHAPS (Clearing House Automated Payment System) or Faster Payment Service. These are both a lot safer than using a cheque. There is a fee to use CHAPS and some banks have a limit on how much you can send through using the Faster Payment method, so make sure you do your research beforehand to find out which one will be better for you.
If you have online banking, then you could also transfer the money this way by using a card reader or mobile banking app. It is always better to do this transfer whilst in a bank, as it will give you both peace of mind, as the seller will know that the buyer has enough funds for it to clear and that it is all going to go through and both parties will be happy with the outcome.
Another payment option which is a lot rarer than the other two is using a cheque to pay for the car. This isn’t always the best option to use as cheques do take some time to clear and the seller will want to see the funds in their account before giving you the car. This could mean that you can’t ensure that you will ever be given the car after days have passed waiting for the funds to clear.
If you are going to use a cheque it is advised that you arrange with the seller to leave a deposit with them and a proof of address and more of your details so that they can give you the vehicle when you hand over the cheque. This enables them to wait for the funds to clear and if they don’t, they know how to get a hold of you.
A banker’s draft is a guarantee from the bank that the buyer will be able to pay the seller. It is like a cheque but there is more reassurance that it will clear. This is a good form of proving that you are able to pay and enables you to take the car when you hand over the cheque, however, they can be faked, so the seller might be hesitant to trust this.
You have a few options when paying for your new car privately. When making the transaction make sure that you are in a safe environment like a bank and take all the necessary steps to avoid any fraudulent activity. Do your research and work with the seller to decide what payment method is best for both of you.
Check out the latest MotorHype merchandise sold exclusively through our online shop.
Looking to sell you car? Advertise it on MotorHype for FREE! Sell my car.
I might be going with a used car through a private seller and having never done this before, this was quite helpful! I didn't know you can even do an immediate transfer for something like this, given that some used costs are up there. Thanks for the explanation of the process though.