Taking Payment

How to Take Payment Safely and Securely

Congratulations! You've agreed the price and taken a deposit. The only thing standing between you and a secure handover is the transfer of the outstanding balance from the buyer.

Paying the Balance

Below are the payment methods available to you. You should choose the method most suitable to you, not the buyer.

Cash

It's not as secure as arranging a bankers draft or bank transfer, but if your buyer insists on paying cash make sure you do the following:

  • Count cash in front of the buyer so there's no disagreement about how much they've given you
  • Ideally, complete the transaction inside your bank where you can deposit the funds directly into your account without the worry of having to carry a large sum around with you
  • Write a receipt immediately once cash has been deposited into your account (see Documents and handover)
  • Hand over all documentation and the keys. At this point the transaction is complete and the car is no longer yours

Cheque

If you accept a personal cheque ensure you confirm with your bank precisely how long it will take funds to clear. Don't release the car until the funds are securely in your account.
When you have received payment via cheque, write a receipt to confirm the payment. Write the details of the cheque on the receipt and write clearly: 'Subject to cheque clearing.'

Bank Transfers

If the buyer shares the same bank as you, you'll be able to transfer funds in minutes. Once complete you should write a receipt and hand over the car, its keys and all documentation.
For different banks, the funds could take up to 3 hours to show as cleared. Don't part with the car until the funds are in your account 

Online Banking

  • Don't make any transfers before you have seen the vehicle
  • Try to make online transfers in the presence of the seller
  • Cleared funds can take a few days to appear in your account. Don't hand over the keys until the funds have cleared

Banker's Draft

This is a cheque written by the bank against the buyer's account. It is a secure method of payment but, if you're not present when the draft is prepared, carry out the following to ensure it is genuine:
  • Take a note of the bank address, telephone number, the account number and cheque number
  • Call your bank manager and ask him/her to call the bank that issued the bankers draft to verify the details and the amount. You won't be able to check these details yourself.
  • Once your bank manager confirms everything is in order write a receipt confirming that you have received payment via banker's draft. You should write the details of the draft on the receipt and write clearly: 'Subject to Banker's Draft clearing'
  • Write the registration number and vehicle details on the reverse of the bankers draft

Once you have received payment (cleared funds) you must give the buyer a typed or written receipt. For more on writing receipts see  Documents and handover




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