If selling a large item e.g. car - how do you sort payment out?

[saltyseadog]

I'm selling a dinghy. There's a chap interested in buying it who will be driving down on a Sunday to hopefully buy it. How on earth do I sort payment? I don't want to take a bankers draft as there's no guarantee that by the time it gets through clearing there'll be any money in the buyer's account.

Paypal is a toughie, as it requires trust from one of us i.e. he either has to trust me that there'll be a boat for him at the end of his trip, or I havet to let him drive off with my boat into the sunset in the hope that he'll transfer the money.

So is cash king? If so can I really ask him to bring a large wad of cash with him ?

If it's a pick-up-and-pay then asking for cash seems reasonable to me.

I think if you get a Bankers draft/cheque (is it the same thing?), the bank takes the funds out of his account when he goes in to get the cheque made. So it is the bank that is actually paying you. I've always thought this, and thought it was the safest way next to cash.

i would offer him a choice.
when i sold my car i said they could either pay via paypal (giving time for me to transfer them oney into my bank account)
send a cheque (again allowing time), bring a cheque and then come and pick up after it had cleared
or bring cash

...otherwise you might as well just take a personal cheque from people, same risk.

sold my car and I said cash on collection only I would have accepted a building society cheque or bankers draft or postal order and they are all guaranteed payments.

Paypal is not guaranteed even if you've transferred the money out as your paypal account is linked to bank account anyway...

Wow - really interesting - I didn't realise that about PP. I'm glad I asked, so thanks.

OK - will offer him a choice.

I think that a bankers draft is safe, for the reasons given by JeMeSouviens. Otherwise cash is good. I would avoid paypal for this sort of thing.

It's absolutely normal when buying such things that you pay in cash. If he has the cash in his account to pay you by paypal, it's easy enough for him to go to a bank and withdraw it. Then you just need to make you count it carefully when he gives it you - again, don't be embarrassed to do this, it's the usual thing - and then give him a receipt for the money ensuring you write 'sold as seen' on it.

I would much rather take cash than worry about the legitimacy of banker's drafts, etc.

Just found this - looks as though the risk is that the BD could be fraudulent (and I won't be in a position to call his bank to confirm as its a Sunday):

Bankers Draft

The link may provide the answer you are looking for. "There are alternative ways of transferring money, such as via CHAPS same-day electronic transfer of funds between UK banks."

If your buyer has a phone bank s/he can ring them and arrange an instant transfer and ask his bank to notify your bank immediatley.

Once confirmed by your bank you can let him/her have the boat.

Alternatively ask him to bring cash and go to your bank with him/her to pay it in before allowing them to take the boat. That way any counterfeit notes will be detected but once the notes are accepted by the bank over its ounter the cash payment is totally secure and cannot be rescinded.

Yep - I think I will go with cash. Thanks Leeka for the tip r.e the receipt

We bought a car once which broke down on the way home - were then told by legal advisor that because the receipt had 'sold as seen' on, we didn't have any comeback re the condition of the car - so now we always write the same on anything that we sell, just to be on the safe side.

Trouble is he wants to come down to pick up the boat on a Sunday - which is fair enough (I work F/T and would want to do similar if buying something). Would we be able to do CHAPS on a weekend ?

Sorry I'm sounding so dappy - bad case of pregnabrain not helping .

i bought a car on a sunday, did bank transfer once i got to house and it was in his account immediately

If I was going to see something on a Sunday, I'd go to the bank on Saturday to get the cash out ready. If I got there and didn't want it, I'd pay it back in on Monday! Not really much of a problem...