You put in the time creating a great advert and have now found a buyer and have agreed a price. But what happens next? Receiving payment for the van can be a little bit difficult if you don’t know what the best way to do it is. 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 probably the easiest and quickest type of payment. The buyer will need to take this cash out and you can both 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 are not meeting at the bank, then you need to think about how you can combat counterfeit money. You can buy money counterfeit detectors online that are quite cheap, so it could be worth 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.
The safest form of payment would be by using a bank transfer. Bank transfers, although they aren’t as instant as paying in cash, are safer and easier to do. The time it takes for the funds to clear will depend on the amount of money you are getting for the van and whether it was via Faster Payments or a CHAPS payment.
Faster Payments are usually 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. CHAPS payments 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.
Buyers wanting to pay by cheque is very rare and this is because cheques usually take a couple of days to clear. If they do however request to use this method, then you need to wait until the cheque has cleared and the funds are in your account before handing over the keys. 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 vans. 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 plenty of options on how you can receive payment for your van. Ensure that whatever method you use, you take the precautions to be safe and receive the payment before handing over the van keys.