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How do we safely transfer money for a car

(16 Posts)
moneyforcar Wed 18-Jan-17 09:20:08

We are buying a car privately. We have done all checks advised by AA re checking documents etc but want to try to pay in the safest way. What would be the best method as we will need to pay the money before we go to collect the car?

TheFutureMrsB Wed 18-Jan-17 09:25:32

I wouldn't pay before collecting, I'd go with cash on collection, seems a safer bet all round really.

Downstairspoo Wed 18-Jan-17 09:26:34

Cash on collection or bankers draft if they are still a thing

JustAnotherPoster00 Wed 18-Jan-17 09:27:50

Use paypal on a mobile device if you already have an account and transfer it when you are with the car and the seller then you have a record of the transaction, all you will need is their email address

PotteringAlong Wed 18-Jan-17 09:28:58

Definitely don't pay before you collect it!

namechange20050 Wed 18-Jan-17 09:47:13

Bankers draft. On collection, not before.

PurpleMcPants Wed 18-Jan-17 10:05:54

We did a bank transfer online while we were at the seller's house. They printed a receipt which they and we signed, and filled in the v5 transfer of ownership bit while we were there.

moneyforcar Wed 18-Jan-17 11:51:05

Thanks for all these replies. My bank says don't use bankers draft anymore as there are too many fakes so they are not often accepted now.

They recommend electronic transfer because at least there is an electronic trail which there isn't with cash. It is considerably over 10K so wont transfer instantly apparently so I don't think we can do the bank transfer at the sellers house.

The car is maybe 5 hours train journey so we don't want to go and find he money has not cleared so really prefer to clear it the day before. Also don't fancy a train journey carrying that amount of cash. Paypal costs are well over £500 so seller will not meet those costs.

Those who say don't pay before collecting. We have checked all their paperwork, had RAC visit to inspect the car, been to their house, done checks to ensure not stolen. Is there anything else we should have done or any other reason that makes you cautious?

PurpleMcPants Wed 18-Jan-17 12:31:38

Our car purchase was over £10k too, we had planned to pay half each (different banks) but one bank wouldn't process the payment at all (lloyds) even after a phone call confirming details so we actually paid it all from another bank (Halifax). Check with your bank first what the payment limit is, you might be ok.

PotteringAlong Wed 18-Jan-17 12:33:24

I think the fact that you could transfer £10k to him and then rock up to find that they've stolen your money and there is no car would make me cautious.

I would get there, transfer the money and then you both wait until the funds have cleared. If that's a couple of hours then so be it but you would be bonkers to transfer £10k to a virtual stranger on trust.

orzal Wed 18-Jan-17 12:41:08

We normally do a £1.00 test payment to make sure the money has gone to the correct account. If a payment is say £30,000 we do do 3 faster payments of £10,000 each. Are you near a branch of your bank where you are purchasing the car from. You could call in and ask them to do a faster payment or transfer payment at the time of purchase if you don't have mobile banking.

Twoevils Wed 18-Jan-17 12:41:31

We did an electronic transfer and it ended up being a real hassle. I trained it up to the vendors town and they picked me up from the station. DP actioned the transfer while I completed the paperwork. Unfortunately it didn't go smoothly and the payment was stuck in the ether with DP and the vendor making multiple calls to their banks to try and find the block. I end up sitting in their house for 4 hours before it finally went though and I could drive home. It meant I missed school pickup and had to make frantic calls to friends to step in. Plus I got stuck in rush hour. The vendor was very good about it and fortunately his wife was home or is have felt even more awkward (and vulnerable) making small talk for 4 hours!

So if you do choose the electronic method I would speak to your bank first and find out the best way of preparing for and expediting payment.

cozietoesie Wed 18-Jan-17 13:01:05

Never ever pay them money without testing the car etc.

moneyforcar Wed 18-Jan-17 13:55:42

Cozie - We have test driven the car and paid AA to do full inspection.

Orzal - Bank say they cant guarantee payment will be instant - our deposit went through instantly via faster payment. We had planned to do 2 payments so each under 10K as that makes it faster.

Twoevils - that is what we fear as have had lengthy discussions with the bank and they cant guarantee speed and dont want a long wait after a 5 hour train journey.

Whilst they are strangers we have checked it as thoroughly as we can think of - it is a very unusual surname and they had the car from new - all papers seen. We can see their local businesses/well established in their name and can see they are registered at the address we visited as is the car and has been from new. The people we met are the same as photos on their business with facebook history running back years.

Anything else we could check to reduce risk. Of course there will always be some risk.

Downstairspoo Wed 18-Jan-17 16:15:04

How about attending a bank with them there so they can witness the transfer instruction to your bank to them.
I would be prepared to wait whilst the transfer goes through rather than risk losing £10k.

BarbaraofSeville Thu 19-Jan-17 10:20:39

Could you arrange a CHAPS payment? They cost about £25 but is a tiny fraction considering the amount.

Or maybe do 2 separate faster payments from different accounts if you have more than one account?

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