techieboy Posted March 15, 2007 Report Share Posted March 15, 2007 I may well be buying a second car this weekend or at the start of next week. It's years since I've bought a car privately and never for this kind of money. Whilst I wouldn't want to lose a couple of grand, I'd get over it. But if I was to "lose" over £12k I wouldn't be so happy. To the point that I'd possibly do something stupid if somebody tried to take it. What's the best way to carry out the transaction with a private seller? I could obviously take cash but I wouldn't be comfortable carrying £12k+ around but the plus point is I could presumably take the car away there and then. Bankers draft/personal cheque - safer from my point of view as I at least would know it was for real and would clear. But the seller couldn't be sure and would presumably want to keep hold of the car until the banks okay everything. I'd not be comfortable having given somebody the money and not having anything to show for it for a few days. Whats to stop them having a last blast in it and damaging something (or worse still disappearing). When does the ownership of the car change? On the handing over of the "cash" or of the keys? It could be a few days in between so who's insurance would cover that period? Is there a trusted escrow kind of service in operation for this kind of transaction? What do the rest of you do? Nervous? Not me Link to comment Share on other sites More sharing options...
R32Ash Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] Is there a trusted escrow kind of service in operation for this kind of transaction? What do the rest of you do? Nervous? Not me [/ QUOTE ] There are Escrow services to handle this sort of thing. But they aren't cheap; you're looking at ££hundreds. I'm curious to know what others do as well. I've paid cash to a private seller for an £8k car, but above that it's always been a franchised dealer. Link to comment Share on other sites More sharing options...
cruiser647 Posted March 15, 2007 Report Share Posted March 15, 2007 Are you saying that you are going to buy a car, but don't know the best way to pay? Or scared of being mugged with £12K on you? Or what? Link to comment Share on other sites More sharing options...
Wallachie Posted March 15, 2007 Report Share Posted March 15, 2007 I've always accepted a bankers draft, because they're almost as safe as cash. What you could do is go with the guy to his bank and get him to lodge the draft there and then, his bank will be able to contact yours to confirm that everything is legit and that you have the funds to cover it. Failing that, stuff the draft in his hand, nab the keys off him and bolt. Link to comment Share on other sites More sharing options...
cruiser647 Posted March 15, 2007 Report Share Posted March 15, 2007 What is wrong with paying cash for it? Just take a friend with you. Link to comment Share on other sites More sharing options...
Atomic Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] What is wrong with paying cash for it? Just take a friend with you. [/ QUOTE ] One named Big John or Dave. Link to comment Share on other sites More sharing options...
Dadstoys Posted March 15, 2007 Report Share Posted March 15, 2007 Check out the car first on HPI / Experian - to see its all ok. Then - if taking that much cash - take someone with you. Cash will be fine - other options are: To take the seller with you to the bank and withdraw the money in his presence and hand it over whilst still at teh counter ( all recorded on CCTV ) Get a bank draft - again in banking hours - and with him present - although this isn't essential as he can check its valid provided you do the deal in banking hours. Bank transfer ( not the best route as some bank accounts get hacked into ) Escrow - dont go near one of these. Link to comment Share on other sites More sharing options...
saab Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] I've always accepted a bankers draft, because they're almost as safe as cash. [/ QUOTE ] Not all sellers trust bankers drafts nowadays - there are lots of forgeries about. Link to comment Share on other sites More sharing options...
330dcoupe Posted March 15, 2007 Report Share Posted March 15, 2007 The steps I've usually taken when buying a car privately are (except the debacle with my Golf, and that because my brother picked it up ) 1) send a deposit (if required) 2) have a bankers draught drawn up. 3) Check car thoroughly (make sure all extra's listed are included) and also test drive - 4) check service books and make sure they are up to date. 5) Make sure they sign the V5 for off in front of you and that you fill in your bit too. 6) write a handwritten letter with seller confirming sale of car and sign. 7) hand over money. Link to comment Share on other sites More sharing options...
Markpaq Posted March 15, 2007 Report Share Posted March 15, 2007 I don't want to state the obvious but make sure you conduct the transaction at the address shown on the V5. Check the VIN number on the document tallies with the one on the car and ask to see his license to show the details are the same as on the V5. Any genuine seller wouldn't have a problem showing you those details. As others have said, definitely take someone with you. Link to comment Share on other sites More sharing options...
gizze Posted March 15, 2007 Report Share Posted March 15, 2007 Only do it during banking hours, arrange for a draft to be made out to the fianance company, if there is finance outstanding, or the seller at a local branch to the car. Then after you have agreed the car is what it should be and you are happy to proceed both go to the bank and to the counter together and collect the draft. Job done, he knows the draft is genuine and you don't have to take the money with you. Make sure you make two copies of the receipt and both sign it, on the receipt say that any outstanding finance remains the responsibilty of the seller even if it shows as none oustanding, or if you are clearing it put that you are paying £xx.xx to the finance house and the balance to the seller. Get his drivers liscence number on teh receipt as well as yours. And as others have said, make sure you collect the car from the address on the V5. Link to comment Share on other sites More sharing options...
fizzbitt Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] I don't want to state the obvious but make sure you conduct the transaction at the address shown on the V5. Check the VIN number on the document tallies with the one on the car and ask to see his license to show the details are the same as on the V5. Any genuine seller wouldn't have a problem showing you those details. As others have said, definitely take someone with you. [/ QUOTE ] Totally agree... When buying a car if the person is genuine he wont mind taking you to his home to look at the car. The idea of going to the nearest bank to enter the bankers draft is a top idea which would keep both parties happy. The last 2 cars i have sold through online car forums and so people can trust me due to my online presence and people vouching for me. Good luck though bud. Link to comment Share on other sites More sharing options...
edo Posted March 15, 2007 Report Share Posted March 15, 2007 I went with buyer of my westfield to the bank he "took out" cash and I paid it straigh in - the cash didnt even come over the counter. Failing that a bankers draft with ID, a recipt or statement showing the money leaving your account, and the option to ring your bank to verify it. Link to comment Share on other sites More sharing options...
techieboy Posted March 15, 2007 Author Report Share Posted March 15, 2007 Thanks for that Gentlemen. Just anxious to make sure I don't get ripped off by a gang at the end of a 250 mile drive/train journey. Heard too many horror stories, I guess! I'd heard lots of issues around forged bankers drafts and the fact that they can actually be cancelled by banks after the've been drawn. Just concerned that if I decide to go ahead with this purchase using a draft, that the guy insists on waiting for a few days to be sure the banks are happy that the funds are real. I assume I'm potentially in a whole world of hurt if something happens to the car between payment and taking away if he's already go the money. I'm sure the guy is trustworthy and there's nothing to worry about but.... Link to comment Share on other sites More sharing options...
Teacake Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] Only do it during banking hours, arrange for a draft to be made out to the fianance company, if there is finance outstanding, or the seller at a local branch to the car. Then after you have agreed the car is what it should be and you are happy to proceed both go to the bank and to the counter together and collect the draft. Job done, he knows the draft is genuine and you don't have to take the money with you. Make sure you make two copies of the receipt and both sign it, on the receipt say that any outstanding finance remains the responsibilty of the seller even if it shows as none oustanding, or if you are clearing it put that you are paying £xx.xx to the finance house and the balance to the seller. Get his drivers liscence number on teh receipt as well as yours. And as others have said, make sure you collect the car from the address on the V5. [/ QUOTE ] I think you'd need to be careful about buying a car with outstanding finance. I'm not certain of the legal position, but I believe that a car on finance remains the property of the finance company until the debt is paid, and the "owner" doesn't have the right to sell it on. If the finance company chose to, they could take the car and leave you with nothing. Best to steer clear of cars on finance until the company confirms that they have no interest in it. Link to comment Share on other sites More sharing options...
techieboy Posted March 15, 2007 Author Report Share Posted March 15, 2007 Yeah, absolutely. I've got an account with HPI so I've run all the checks I can on a number of different cars I'm looking at. It all comes down to whether the car is the one I want. Just need to have a clear idea of what the money options are. All the cars I've bought in the last 12 years or so have been direct from dealerships so haven't had the worry. Why is it that you always have to got to the opposite ends of the country whenever you're trying to buy a car? Why is it the guy in the next street never has what you want? Link to comment Share on other sites More sharing options...
Oatz Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] To take the seller with you to the bank and withdraw the money in his presence and hand it over whilst still at teh counter ( all recorded on CCTV ) [/ QUOTE ] This is the way I've sold cars privately and if they are not dodgy then they will also agree to it being conducted in a 'safe house'. Just to be doubly sure (only applies if you both bank with the same bank) I have made the buyer withdraw the money in front of me, then paid it straight into my account. Where as doing a transfer can theatrically be stopped afterwards. The next time I got the buyer to meet me at my office and we both walked to my bank together. I got the bank to witness the transaction (call before hand and they should be able to offer you a room). The bank by default accepts the cash/verifies the cash is legit and you simply complete the forms there and then and hand over/collect the keys Link to comment Share on other sites More sharing options...
bells0 Posted March 15, 2007 Report Share Posted March 15, 2007 When i bought my 350Z, the seller banked with barclays, and i'm with natwest. We found the nearest town with the 2 branches opposite. Withdrew 25k cash and ran across the road with my rucksack and paid into his account. Done [was a little scary though!!] Make sure all checks are done before though ie hpi checks and the sellers id etc. Link to comment Share on other sites More sharing options...
Golfer Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] I may well be buying a second car this weekend or at the start of next week. It's years since I've bought a car privately and never for this kind of money. Whilst I wouldn't want to lose a couple of grand, I'd get over it. But if I was to "lose" over £12k I wouldn't be so happy. To the point that I'd possibly do something stupid if somebody tried to take it. What's the best way to carry out the transaction with a private seller? I could obviously take cash but I wouldn't be comfortable carrying £12k+ around but the plus point is I could presumably take the car away there and then. Bankers draft/personal cheque - safer from my point of view as I at least would know it was for real and would clear. But the seller couldn't be sure and would presumably want to keep hold of the car until the banks okay everything. I'd not be comfortable having given somebody the money and not having anything to show for it for a few days. Whats to stop them having a last blast in it and damaging something (or worse still disappearing). When does the ownership of the car change? On the handing over of the "cash" or of the keys? It could be a few days in between so who's insurance would cover that period? Is there a trusted escrow kind of service in operation for this kind of transaction? What do the rest of you do? Nervous? Not me [/ QUOTE ] Your safest best way is direct Bank transfer, get there bank details, go into there bank and pay it in and get a recipt.After you've HPI'd the vehicle first. Link to comment Share on other sites More sharing options...
techieboy Posted March 15, 2007 Author Report Share Posted March 15, 2007 [ QUOTE ] We found the nearest town with the 2 branches opposite. Withdrew 25k cash and ran across the road with my rucksack and paid into his account. Done [was a little scary though!!] [/ QUOTE ] Fantastic. What a great picture that paints Link to comment Share on other sites More sharing options...
bells0 Posted March 15, 2007 Report Share Posted March 15, 2007 Was a bit military commando stylee!! [my wife just sauntered slowly behind us] Link to comment Share on other sites More sharing options...
techieboy Posted March 15, 2007 Author Report Share Posted March 15, 2007 [ QUOTE ] Your safest best way is direct Bank transfer, get there bank details, go into there bank and pay it in and get a recipt.After you've HPI'd the vehicle first. [/ QUOTE ] You see, that would be my preference, all electronic with no fingering of the cash. But, a transfer from my account (unless it's to someone in the same bank) can take upto four days to arrive. That's 4 days I wouldn't want to leave my investment in somebody elses hands. I'm going to call my bank now and see what they suggest. I might just move £15k into my current account and see if it's possible to pay him, via a debit card at his bank, direct into his account. That's how I paid the dealer for the Audi. Totally painless although I had a brain fart over which PIN to use at the time Link to comment Share on other sites More sharing options...
gizze Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] I think you'd need to be careful about buying a car with outstanding finance. I'm not certain of the legal position, but I believe that a car on finance remains the property of the finance company until the debt is paid, and the "owner" doesn't have the right to sell it on. If the finance company chose to, they could take the car and leave you with nothing. Best to steer clear of cars on finance until the company confirms that they have no interest in it. [/ QUOTE ] Sorry I totally disagree, I don't think there is any problem buying a car with finance on it, in fact in some ways I prefer it, you got to the bank and make a draft out to the finance company to settle the agreement, and if it has finance on it you know that vehicle is then hpi clear, where as an hpi check could miss finance if a private plate has been removed/added recently. If you buy a car with finance outstanding with say BMW, they have to chase the customer for the outstanding debt, I don't think they can get your car unless it was obtained by deception. I am sure someone who is a dealer will fill us in on that? I think there is a lot of unecessary worry regarding comapnies taking your car away cause someone else borrowed money on it. Unless, the V5 is in the finance comapanies name. Link to comment Share on other sites More sharing options...
Teacake Posted March 15, 2007 Report Share Posted March 15, 2007 [ QUOTE ] If you buy a car with finance outstanding with say BMW, they have to chase the customer for the outstanding debt, I don't think they can get your car unless it was obtained by deception. I am sure someone who is a dealer will fill us in on that? I think there is a lot of unecessary worry regarding comapnies taking your car away cause someone else borrowed money on it. Unless, the V5 is in the finance comapanies name. [/ QUOTE ] I believe this to be incorrect, that outstanding finance must be cleared before a car can be sold, and that BMW or whoever can repossess the car without compensating you, but I am prepared to be put right on this... Link to comment Share on other sites More sharing options...
gizze Posted March 15, 2007 Report Share Posted March 15, 2007 No, cars would never get sold if that was the case, most people who have finance have it because they don't have a spare £15, 25, 45, 75k lying around, so it is usual for the buyer to settle the finance. When you part ex your car you never settle the finance, in fact a garage will prefer to settle it for exactly the same reasons I said before, they then know it is then finance clear. I can't remember who on here said they worked for Audi or BMW on here, but they explained what they can and can't do, and it was quite suprising as they can't do a lot. Yeah the car can still be repossesed, but that is why as the buyer you settle it, never let the seller settle it. Link to comment Share on other sites More sharing options...
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