Buying a used van privately has its perks, including quick purchases and finding vans for a cheap price that you can afford. However, the most awkward part of the process is actually paying for it. It is hard to know which way to pay for it is best, so that you have a safe transaction and both parties are happy. Below we have listed a few different ways you can pay and how you can do them safely.
You can pay for the van by cash if you would like. Paying with cash is a bit risky in terms of safety, so it is advised that you meet to make the transaction at a bank. This will allow you to prove that the cash you are paying with is real and the seller will be able to put the money into their bank immediately. Then they can just hand you the keys and you can be on your way. Paying them in a bank 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 payments that are large sums, you can use CHAPS (Clearing House Automated Payment System) or Faster Payment Service. Both of these methods are a lot safer for the seller than using a cheque which might end up bouncing. 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 use online banking, then you will be able to transfer the money via this, all you will need is a card reader or mobile banking app, so be sure to take one of those along with you. If possible, it is still better to do this transaction in a bank, so it can give you both peace of mine and will let the seller know that you have enough money to make the transaction.
Paying for a van via cheque is quite rare and not really recommended. As a buyer, there is less risk, but for the seller they won’t know if your cheque is going to bounce and therefore will want to wait for the money to appear in their account before giving you the keys. This is not recommended as cheques can sometimes take days, so you don’t want to hand it over and never hear from them again.
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 van when you hand over the cheque, however, they can be faked, so the seller might be hesitant to trust this.
There are a few different ways that you are able to pay for the van safely. Make sure that however you choose to pay, you are doing it safely. Do your research and work with the seller to decide what payment method is best for both of you.
CarFinance 247 Limited is a credit broker. Rates from 6.9% APR. Representative APR 19.9%.