A private car sale can often feel a little intimidating, especially if it’s your first time. It can be a simple and highly profitable solution if you know how to approach payment, and do not fall victim to scams.
There are several ways to request payment, however each method can open the door to unsanctioned behaviour. Making such a large monetary exchange is not a matter to be taken lightly, and of all the ways to sell your car, a private deal is by far the riskiest. It’s important you know the ins and outs of each payment method so if you do opt for a private sale, the deal can close smoothly.
If you do have endeavours of selling a car privately, it’s time to take an in depth look at your options when it comes to payment. Understanding the benefits and the risks involved with each method will set you up for a successful transaction.
Since the upsurge of online banking, direct depositing has become a fast, efficient and free way to transfer money between bank accounts. It involves the buyer authorising their bank to withdraw an agreed amount from their account to transfer to the seller’s account.
• The transaction can be performed at a financial institution, and the teller can validate the transaction, giving the seller peace of mind
• The transaction will be documented and it’s easy to obtain paperwork for both parties’ records
• There are often concerns about the seller handing over the keys before the money has cleared in their account
• Some sellers have qualms with handing out their bank details to strangers
The old fashioned form of cash payment involves the buyer paying for the car upfront, with cash. Although this method can require handling large amounts of cash, it makes the entire exchange relatively straight forward.
• Generally, alleviates fears of fraudulent activity and the seller does not have to worry about receiving the money after they’ve handed over the car
• Both parties receive instant gratification by receiving their end of the deal
• The concern of one party ‘running away’ with the cash
• Can sometimes be difficult to withdraw large amounts of money from the bank or ATMs
• Your safety and security can be jeopardised when carrying large quantities of cash
• There is no electronic receipt or record of the sale
A bank cheque is a document that orders the buyer’s bank to withdraw a specified dollar amount from their account. This amount then becomes available to the person whom the cheque is addressed to. Funds are generally cleared and made available to the receiver a couple of days after banking the cheque.
• The cheque is issued by the bank not the individual, so it will not bounce
• Bank cheques are a popular option for large, one off purchases when you’d rather not carry cash
• Poses a risk to forged signatures
• Can be fraudulently or materially altered
Without an established level of trust between the seller and the buyer, it can be difficult to decide on a method of payment that’s secure for both parties. If you’d like to abolish the risky business, why not talk to the team at Cars Brisbane about selling your car. Get started on the 3-step process and contact us for a free quote. We pay for your car on the spot, so there’s no stress surrounding how you will request payment. Save yourself the hassle and sell your car today!