Best payment method for selling a 25k car

Danlew on 26/02/2019 - 20:33
Last edited 26/02/2019 - 20:34

Hi all, I’d appreciate if I can get some advice on payment method for selling my car priced $25k.

I would only sell it to another in person.

I understand that I should not hand over the key until all funds are cleared and confirmed in account whether it’s a cheque or a direct deposit.

However thinking from the buyers shoes, it won’t be easy for them to carry and pay all amount in cash, or send the money and wait for the funds to clear.

Can I please ask for some tips on this and what to do for private selling eg taking a photo of their licence before test drive etc

Thanks so much

Automotive

Comments

    • MrBear on 27/02/2019 - 09:24

      I'm pretty sure this has limits. ING has limits of $1K for instant transfer.

    • cloudy on 28/02/2019 - 05:06

      PayID. And from what I read of their website it’s instant and can not be reversed. Not sure about limits.
      All banks will eventually have it, some haven’t yet implemented it

  • tight-ass on 26/02/2019 - 22:38
    +2

    Ask to see their drivers licence before going for a test drive and check the validity of it online. When selling my car privately here in WA I checked the WA licensing website to confirm it was current and the fines enforcement registry website to ensure it wasn't under any fines suspension.

    If they aren't willing to do so don't let them drive the car…you're insurance won't cover them should they have an accident if their licence isn't valid or they don't have the right class of licence.

    Also when going for a test drive only hand over the keys to the buyer once you're seated in the car….stops a would be thief from locking you out and making off with the car

  • itsdougie on 26/02/2019 - 22:58

    bitcoin
    Possible scenario is some cash and the rest in drugs. I've experienced this before. Uncomfortable

  • elgrande on 27/02/2019 - 06:40

    Cash transaction at bank branch.

    • Antikythera on 27/02/2019 - 23:45

      i understood the best way to use a non-bank cheque was to go with the buyer to their bank, have them cash their own cheque (or just make the withdrawal and not bother with the cheque in the first place) then the teller gives you the cash and you buy a bank cheque from the bank with that cash. (or deposit cash into your account if you use the same bank)

      then it is two separate transactions with the bank. you and the buyer are not involved in a transaction that may be reversible.

  • ol mate on 27/02/2019 - 07:33
    +3

    Last time I sold a car, I asked for cash ($15k) and went straight to the bank to deposit it.

    Time before, we banked with the same bank so they withdrew and I deposited straight away (i.e. bank end saw it as a withdrawal and deposit and not a transfer)

  • farknos on 27/02/2019 - 10:20
    +2

    a bank cheque can be cancelled, all that the person that paid to have the bank cheque drawn up has to do is state its lost and the bank will cancel. that becomes a matter of fraud, but in WA at least the problem of recovering the money becomes civil and the person that sold the car has to chase the person that bought the car and cancelled the cheque to recover the money. I know someone this happened to. If you go into a bank and ask the question as per the scenario i have stated you will find its a fact, sadly. cash is king.

    • Danlew on 27/02/2019 - 11:50

      Cheers. I believe I will be in the same boat here in qld as well

    • smpantsonfire on 27/02/2019 - 18:46

      Its not a easy as stating the cheque is lost.

      • farknos on 27/02/2019 - 22:36

        you may well be right, but when i asked the man at the local bank if the person that paid to have the cheque written could have it canceled he said it could be canceled even after it was presented into my account.
        and as i stated above i know someone that did get shafted out of a car this way, i asked at the bank as i struggled to believe it anyway.

    • Shwayne on 01/03/2019 - 12:13
      -1

      I don't believe a bank cheque can be cancelled or reversed if it has already begun processing.

      I.e. go to the bank and cash it in with the buyer before handing anything over.

  • ThatKiwiFella on 27/02/2019 - 14:27

    I've never actually sold a car but what I would do is once purchase is confirmed, go somewhere, preferably where both yours and buyers banks are close, get cash, exchange over all the ownership documents and then go and deposit the cash into your bank.

    The only downside I can see to this is having to meet inside business hours which may be difficult for one or both, and agreeing on a place to go to

  • Traveller107 on 27/02/2019 - 16:20

    Cashiers cheque.

  • Bid Sniper on 27/02/2019 - 17:49

    Photo of license. Can do wire tranfer via their phone app infront of you and them use their notify via sms tp confirm. Will come from bank sms service. Can be done instantly. also have them send a screen shot

    Bank cheque too much hassle and can be cancelled.

    Did that with my old WRX, test drove it Saturday and came back Sunday to buy it done on the spot. Same with inlaws old honda. Fill out the rego notice of disposal online as well.

    • Brouw3r on 28/02/2019 - 17:45

      Pretty sure you can only cancel a bank cheque by returning the bank cheque and having it cancelled - which clearly they can't do if they've handed it over.

  • Aerith-Waifu on 27/02/2019 - 20:48

    Don’t do the bank cheque. Too much trouble and waiting time.

    Once the agreement is made, ask the person buying the car meet you at the bank and they pay you with cash directly and you put the cash into your account directly. No risk as money doesn’t leave the bank. Make sure the other person have called the bank to reserothe cash. This only works if both of you use the same bank.

    I have done it this way the last time and we are both happy

    • Danlew on 27/02/2019 - 20:53
      +1

      I agree this will be the ideal option but if we are using the same bank. Otherwise I was thinking to meet at a small shopping centre where number of banks are located near by… cheers

      • Antikythera on 27/02/2019 - 23:48

        create an account at the buyers bank. deposit cash into that account. keep the account long enough to transfer your money from your own temp account to your main bank.

    • Chewiebacca on 28/02/2019 - 00:40

      Would literally be quicker to have both a bank cheque made and deposited than it would be for the bank to withdraw 25k cash, and for your bank to accept 25k cash.

  • neilpatrickharris on 27/02/2019 - 22:31

    I'm selling my car tomorrow for 25k. Agreed on bank cheque. We both bank with Westpac and will be meeting at the branch where I'll cash in the cheque. The buyer will be in the branch on camera so can't say that they lost the cheque. Bank cheques take 3 days to clear even if within the same bank. I also have a photo of his licence.

    • cloudy on 28/02/2019 - 05:10
      +3

      Stupid question maybe, but if your both with same bank, meeting at bank, why not ask them and bank, to withdraw cash, and take it and instantly ask to deposit cash into your account?

      Save on bank cheque fee and should be instant. No?

      • neilpatrickharris on 28/02/2019 - 08:50

        We originally weren't planning on meeting at the bank and the buyer already made the bank cheque. Would definitely choose the cash option next time.

  • [Deactivated] on 27/02/2019 - 22:35

    Online transfer cyber cafe.. that's how I purchased my car..

  • p3nf0ld on 27/02/2019 - 23:22
    +5

    Imagine if the shoe was on the other foot. If the OP was buying the car for $25k there is no-way we would recommend paying cash - especially if that is the only form of payment the seller was accepting. There would be alarm bells going of everywhere. Bank cheque is the accepted means of transfer & accepted by car yards themselves - the purchaser deserves a little protection too.

    • Danlew on 28/02/2019 - 09:49

      I agree with it, looks like meeting at the bank will be the most appropriate action

  • ratoloko on 28/02/2019 - 08:57

    Easy, go to the buyer's bank where it is not far from yours. If it's the same it is even better.
    Take the money, count it, then go to deposit into your account.
    You might not be able to use the money straight away but this is the safest way, witness, cameras, etc.

  • Zondor on 28/02/2019 - 10:45

    Does PayID support transactions that large?
    Just have you both set it up and transfer within like 2 minutes after getting your limit raised.

  • drprox on 28/02/2019 - 11:25

    No great way to handle this. We signed transfer docs and I did 2 internet banking transfers in front of the vendor at my recent purchase. It was $38k but we had built a level of trust by then and I was sitting in their apartment having a cup of tea. I guess my advice is there does need to be a level of trust on both sides and if there isn't you both have the opportunity to not deal.

  • Plug on 28/02/2019 - 11:36

    I thought the Govt introduced a cash purchase cap of $10k.

    • kiitos on 28/02/2019 - 14:58

      Not yet, but it's a recommendation.

  • rave75 on 28/02/2019 - 11:48

    ask him to bring cash and go to your bank with you to do branch deposit to your account?

  • Typical16-bitEnjoyer on 28/02/2019 - 12:37
    +1

    Don't forget to get the transaction down in writing, both of you sign it, get a copy of their licence.

    Last time I sold a car privately the kid managed to rack up 3 speeding fines within the hour. Easy to nominate him because I had all his info recorded from the above.

    • HantuPocong on 28/02/2019 - 20:07
      +1

      When I was selling my car, I submitted an online disposable notice with service NSW straight away. That way, the car will be registered to the buyer.

      • Typical16-bitEnjoyer on 03/03/2019 - 08:42

        Unfortunately Victoria has an inferior system in comparison.

  • cnrmlj on 28/02/2019 - 19:13

    Internet banking with same bank as them is immediate.

    I sold a car recently and they transferred $13k from CBA to CBA and I got the money straight away. Also took a copy of their licence.

  • badarz on 28/02/2019 - 22:25
    +1

    Carsales have a service for exactly this called PayProtect. I used it recently, and would recommend.

    • Danlew on 28/02/2019 - 23:10

      Interesting, does it incur any fees?

  • ronyh on 01/03/2019 - 01:00

    PayID, i believe the limit is 25k on personal accounts. I used it late last year, no issues and instant transaction.

    • conservative on 01/03/2019 - 08:31

      Isn't the daily limit like 1,000?

      • ronyh on 01/03/2019 - 16:13

        By default yes but you can easily increase it.

  • WhatWouldBiggieDo on 01/03/2019 - 09:25
    +1

    I think people massively overthink things sometimes.

    Your car is insured - if someone steals it/doesn't pay you for it, that is an insurable event, and insurance will pay you out (before someone says insurance won't pay because you gave them your keys, that's rubbish - I was an insurance assessor for 5 years).

    Ask them to transfer the money to your bank account and give them the keys after it has cleared the next day. Otherwise, they can give you a bank cheque at handover. If they cancel the cheque, it's theft - you have their licence details and your car is still insured.

    Really not rocket science.

    • pos on 01/03/2019 - 10:27
      +1

      I was going to ask if insurance would cover this! I'll call my insurer and check to see if they have any other requirements.

      • WhatWouldBiggieDo on 01/03/2019 - 10:43

        Ask them. And then update so Farknos can eat some humble pie

        • farknos on 02/03/2019 - 13:21

          apparently he did ask as per his responce below, i think i will pass on the humble pie for this one.
          i am devastated about the engwish and grwamar comment below, all this time i have prided my self on both, shattered

    • farknos on 01/03/2019 - 10:31
      -1

      for someone that was an assessor for 5 years i am surprised at your response. please explain why or how an insurance company would cover a car that is insured in your name and you have transferred the car out of your name and no longer own it?
      your dreaming, insurance companies don't employ loss adjusters to bring flowers to clients, they pay them to see if there is a loop hole to not pay.
      its not rocket science and you can call it over thinking things but the fact is there are scum out there that do these crimes.

      • WhatWouldBiggieDo on 01/03/2019 - 10:42

        Your response was amazingly confident for somebody who doesn't know what they are talking about. Also, it's kind of hard to take you seriously with such appalling spelling and grammar (and your conspiracy-theorist attitude). But i'll play.

        You can absolutely insure a car that's not in your own name. I could borrow your car tomorrow and whilst driving it take out an insurance policy. If I crashed and the car was written off, I would be paid out for it. There is no requirement to own something that you want to insure. That's the first point you're incorrect on.

        You've also fallen in to the trap of "the big bad insurance company are out to get me, and will do anything they can to get out of paying." This is Australia, one of the most regulated countries in the world, insurance companies don't pull those sort of tricks. Your $25k car is a drop in the ocean to these guys. Maybe for a huge event (think 2011 Brisbane floods) the losses will be so large that some unscrupulous insurance companies will try and get out of paying, but for your $25k car, they will be paying.

        Do you also honesty think that the other party is transferring it into their name? If they have stolen it?

      • pos on 01/03/2019 - 10:44
        +1

        If someone cancels their payment on a sale contract, they don't take ownership of it. Change in registration is not change in ownership (at least not in Victoria).

      • pos on 01/03/2019 - 11:00

        OK, so RACV's view (based on the one person I called) is:
        1. If the car is stolen by the buyer under the guise of a test drive, then that is a claimable theft.
        2. If the car is sold in exchange for a fraudulent cheque, then that is a 'business transaction' and not 'theft'. It will not be claimable.
        They recommended to avoid transferring the car until funds have cleared.

        The logic of (2) is crazy, but that is what they said. I suppose you'd have to go to court based on something similar to my argument below. But who could be bothered! Easier to do the transaction carefully.

  • Coude Copon on 01/03/2019 - 14:51
    +1

    You should always proceed with cash. Buyer can make a request with the bank and cash will generally available for withdraw on the next day. Sometimes they can even find out which branch store such amount of cash and reserve it for you (My own experience, 30k withdraw in an hour).

    Never trust cheque before they available in your account. When you deposit cash, bank can detect counterfeit, but no such machine to detect cheque.

  • cath999 on 01/03/2019 - 21:26

    I had some bikies (seriously) buy a car from me a few years ago and they paid 25K in cash. They asked whether I wanted a bank cheque or cash. Yes it took awhile to count and when I deposited it the bank noted on my account the reason for a large deposit,
    Other than that it was a stress free transaction

  • Black Brown Blue on 04/03/2019 - 12:47

    Cash only for any type of gumtree style transaction even selling a car. 25k is not a lot of amount to carry around. I have carried 30k with me once. Just act normal and you will be fine.

  • ihavok on 09/03/2019 - 21:27

    Sold my car for just over $20K. I insisted on a bank cheque. The buyer was uncomfortable with handing over the bank cheque without me handing over the keys. I suppose that's understandable. The compromise I made was I delivered the car immediately after I cashed in the bank cheque. I don't think this is the safest option for the seller as you typically need to allow some time for the cheque to clear (even if it's a bank cheque) but this was a compromise.

    Afterwards, I asked my bank what a better option would be. Both myself and the seller have accounts with the same bank. The bank suggested that we go into a bank branch and do a transfer between our accounts. This would be instantly processed. I'm not sure what the limit is for such a transfer, but I was told that it was well over $20K. I think I might do this the next time I sell my car.

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