You have found a buyer for your used motorbike, this is great news! Your hard work creating a brilliant advert and agreeing a price has paid off. But, how do you actually get paid? Knowing your options on how to receive payment for the motorbike is important so that you can ensure the transaction is done safely. Below we have laid out all the different ways that you can be paid.
There are three ways you can receive the payment, and these are by cash, cheque, or online transfer. No matter which way you choose you need to make sure that you have received the money before you hand over the keys.
Cash is a great way to receive payment of your motorbike, depending on the price you are selling it for. Some people might struggle taking out large sums of money and might not feel safe doing so. This is not a problem, and you should respect the wishes of the buyer on that one. However, if paying by cash is something they are willing to do, you need to ensure you meet in a safe place to make the transaction. For safety reasons it is recommended that you meet in your bank. This way you can get the money off them and hand it over to the cashier to check it is all real and pay it into your account. If everything checks out, then you can hand over the key.
If you aren’t going to meet at a bank you need to consider counterfeit money and how you are going to work out if this is being used. Counterfeit detectors can be bought online for quite a cheap price, so it could be worth considering getting one of those before meeting them. You still need to meet in a safe, neutral space. Once you have made the transaction be careful walking around with a large amount of cash on your person. Try to deposit the cash as quickly as possible into your account.
Paying for a vehicle with a bank transfer is probably the most common form of payment. This is because it is the easiest and less time consuming. The time it takes for the funds to clear will depend on the amount of money you are getting for the motorbike and whether it was via Faster Payments or a CHAPS payment.
Faster Payments is probably the easiest way to pay and the transaction is pretty instant, however in some cases it can take around two hours. These payments can be made online, on a banking app or over the phone. If you are transferring money over a certain amount you will need to do a CHAPS payments, which can sometimes take longer, however it is guaranteed to arrive on the same day. If it is a weekday, or the next day if it is a weekend or a public holiday.
Make sure that the funds are showing as cleared in your bank before handing over the keys to the buyer to be sure that it will go through.
Although cheques are not as readily used as they used to be, it is still an option when receiving payment for your motorbike. However, it does come with some issues. Cheques often take a couple of days to clear, and you shouldn’t hand over the keys until they have. Buyers might not want to use this method because of that, which is understandable. This form of payment is difficult between strangers as it needs a certain amount of trust, so be sure to check with your bank that they have cleared properly.
PayPal is an easy way to sell and buy goods online, however it is not the safest for buying and selling motorbikes. Vehicles are exempt from PayPal’s protection policies. Once the payment has been authorised, the payment is final, however it does leave you exposed to potentially fraudulent activity, as the account that sent the money to you could be fake or could be stolen.
Escrow is an uncommon way to pay for a vehicle, however it is possible and can be a safe method to ensure that both parties are safe and happy with the transaction. Escrow is when the money is given to a neutral third party until a set of conditions are met which are decided by you and the buyer. It is great for larger amounts, as it means that you know the money will be received, if both you and the buyer are happy.
When hiring the third-party company, ensure that they are legitimate and check with the Financial Conduct Authority.
As you can see you have several options on how you can receive payment for your motorbike. Ensure that whatever method you use, you take the precautions to be safe and receive the payment before handing over the motorbike keys.
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