Best payment method for selling a 25k car

Hi all, I’d appreciate if I can get some advice on payment method for selling my car priced $25k.

I would only sell it to another in person.

I understand that I should not hand over the key until all funds are cleared and confirmed in account whether it’s a cheque or a direct deposit.

However thinking from the buyers shoes, it won’t be easy for them to carry and pay all amount in cash, or send the money and wait for the funds to clear.

Can I please ask for some tips on this and what to do for private selling eg taking a photo of their licence before test drive etc

Thanks so much

Comments

  • HOld on to their licence during the test drive.

    Just get a bank cheque from him and deposit it at the bank with him/her.

    • Cool. I’ll try and hold onto it.

      Even if you make cheque deposit at the bank I thought they can always cancel it before it’s cleared?

    • HOld on to their licence during the test drive.

      Not sure about other states, but you need your licence when driving anywhere here. If they've driven there, check their ID, then hold onto the keys for their car.

      • Not sure about other states, but you need your licence when driving anywhere here. If they've driven there, check their ID, then hold onto the keys for their car.

        what…..

        I tag along for the test drive. You're insane to let someone take off with your car.
        In the eastern suburbs of Sydney you don't need a physical licence to be with you. I keep it on my phone.

        • Nothing wrong with letting someone drive your car if you know who they are, and you have their car.

          I've sold and bought several cars, and never one has anyone I was looking at buying from insisted on coming with me for the drive. That's news to me.

    • dont hold onto licence… go with them

  • There's really nothing that totally risk free, except cash (if they're not counterfeit notes!).

    Otherwise, bank cheque with account name that matches that of the drivers licence and where you can both go in and verify the cheque is valid at the issuing bank's branch. Then deposit.

    • Otherwise, bank cheque with account name that matches that of the drivers licence

      That'd make it a personal cheque. A bank cheque would literally have the bank's name, because it's coming out of the bank's own account, and not any individual's account. That's (part of) what makes it so safe - because a bank's own funds can't possibly be overdrawn* unlike an individual's.

      *Well it can, but by then it'd be GFC2.0 and we'd all have much bigger worries… (and OP should be selling the car for canned goods not cash).

      • What's a GFC?

        • Global Financial Crisis, when major banks were running out of money.

          • @HighAndDry: oh, has it ever happened?

            • @Zachary: Where have you been for the last 10 years?
              References are made to the GFC all the time
              Google GFC and read up on it

            • @Zachary: Oh yeah. Heaps of times. Just usually not in developed countries like Australia. You can find some examples in this Wiki on "bank runs", which are basically people, for one reason or another, rushing to withdraw all their deposits from a certain bank.

              Most banks not unsurprisingly don't have every dollar deposited with them in the form of liquid cash, and this can lead to banks literally running out of money. Some examples from that link:

              On 13 September 2007, the British bank Northern Rock arranged an emergency loan facility from the Bank of England… The resulting financial crises ended with the nationalisation of Northern Rock.

              This was during the GFC. Bank literally ran out of money and had to be bought up by the UK government.

              On 25 September 2008, the Office of Thrift Supervision was forced to shut down Washington Mutual, the largest savings and loan in the United States and the sixth-largest overall financial institution… Over the previous 10 days, customers had withdrawn $16.7 billion in deposits. This is currently the biggest bank failure in American financial history.

              Also during the GFC.

              On 6 October 2008, Landsbanki, Iceland's second largest bank, was put into government receivership… With over 5bn in savings held by Britons in Landsbanki, the Icelandic collapse threatens private citizens in the United Kingdom as well as companies in Iceland.

              Another one in the GFC. "Receivership" is basically a more civilised, managed, form of bankruptcy.

      • Lol so ur trusting that the bank checque wasn’t printed by a printer at home ??!??

        Lolllz be serious. Ur handing over a car for paper you can’t trust ? Untill it’s in ur account and cleared bank cheque or not forget about it. I’d love to see the look on ur face when they tell you “ what’s this ?”

        Act like you got some sense.

    • I agree. Can’t they still cancel their cheque after all that?

      • It takes an incredible amount of verification before a bank cheque can be cancelled, and no way to lose the funds if you can prove that you accepted the bank cheque as payment for something without knowing it was somehow invalid or fraudulent.

        A bank cheque represents an order against a bank's own funds purchased by the person who obtained it, and so any issues with the person itself will fall on the bank, not on the recipient of the bank cheque.

        It is, quite literally, the closest equivalent to having stacks of notes in a briefcase.

        • +10 votes

          It is, quite literally, the closest equivalent to having stacks of notes in a briefcase.

          But without the fun, really

          • @jjjaar: $25k would look sad rattling around in a briefcase. You'd have to use $5 notes just to fill it about half way. With $100 notes it'd be almost empty.

        • It only takes a phone call followed by a stat dec or a police report for a bank to cancel a bank cheque.

          Not an incredible amount of verification.

          • @zeggie: Again no. That a bank cheque has been lost or stolen is not the only requirement for it to be cancelled. The holder of it also has to have no entitlement to the funds.

            Plus - even for that to happen, you'd need a completely random third party draw a bank cheque in the name of the seller and for exactly the agreed selling price, AND then lose or have that bank cheque stolen.

            • @HighAndDry: Again, once the bank cheque is cancelled, it cannot be cashed. It does not remain valid.

              • @zeggie: An invalidly cancelled bank cheque will still be honoured. And a bank cheque that was cancelled due to a false stat dec and a false police report would definitely fit the bill of being invalidly cancelled, and that'd be easy to prove because you would have a contract signed by the buyer with their name, with the amount, and with the car sale details, and the bank would have records of that person drawing the bank cheque and obviously not losing it because you're presenting it.

                Not to mention you're suggesting someone would commit perjury and file a false police report as part of a separate scam.

                I'm done here.

                • @HighAndDry: That is the most incredible straw man argument I've seen this year.

                  Please point out anywhere in my brief 2 comments above where any of your last post has any relevance? Who said anything about perjury, invalidly cancelled, false reports, contracts, anything you babbled on about just then?

                  You said

                  It takes an incredible amount of verification before a bank cheque can be cancelled

                  I countered that it is as simple as a phone call.

                  is not the only requirement

                  The drawer only has to provide a stat dec or police report for the bank to replace the cheque. Nowhere in any bank T&Cs, nor anywhere, supports your belief that the reporting lost or stolen is conditionally on other factors. Feel free to provide evidence otherwise.

                  Both of your statements are wrong but you narrowed in on an argument to support your own misguided belief.

                  • @zeggie: How is a seller going to end up with that bank cheque if the buyer lost it?

                    And if the buyer didn't - providing a stat dec saying they did is both perjury and fraud. Since I apparently need to spell out everything.

                    • @HighAndDry: Once again, what does that have to do with your incorrect statement

                      It takes an incredible amount of verification before a bank cheque can be cancelled

                      What do the majority of people purchase bank cheques for? Major purchases.

                      Where do the majority of major purchases take place? At places of business.

                      Pretty easy for a lost cheque to be found and that third party to attempt to use it at the named place of business stated on the bank cheque. As evidenced with my own eyes.

  • Bank Cheque with verify of ID

  • Bank Cheque in return for keys and signed Transfer, or whatever you have in QLD.

  • -1 vote

    If you are concerned I would insist on cash. When buying a car through classifieds cash is king, it's not that big a deal really.

    • I’d refuse to purchase a car if the buyer insisted on cash only when a bank cheque is perfectly suitable. I wouldn’t be walking around anywhere with that amount of cash on me.

      • +6 votes

        I wouldn't accept anything else so I guess you wont be buying a car or anything else from me.

        • @seano:

          If I was to buy a $25k car off you and you insisted on “cash” I would happily pay you $10 notes.

          For a $5k car, ok, cash. But for a $25k car, get over yourself. Just asking to be mugged.

          • @pegaxs:

            But for a $25k car, get over yourself. Just asking to be mugged.

            …not if you hide it in such a way that it's not noticeable….

            And who would bring $10 notes to make the 25k? Sure if you wanna troll them…….they should have $1000 notes in this day and age….or even $10000 notes to ease all these dramatic discussions….I want my $10000 note….now….

            • @Zachary: Hiding it or not, if someone asked me to bring a big wad of cash for a car sale, it could be a set up. It rings alarm bells.

              I also don’t want to be at someone’s house/park/work/anywhere while they count out $25k worth of notes. It’s annoying enough already having to buy cars off people without having them get to the end of counting $25k only to be $100 out and they have to count it again.

              And you can get $10,000 notes… just go to a bank and get a bank cheque made out to “cash” to the value of $10,000. It’s as good as cash.

              • @pegaxs:

                I also don’t want to be at someone’s house/park/work/anywhere while they count out $25k worth of notes. It’s annoying enough already having to buy cars off people without having them get to the end of counting $25k only to be $100 out and they have to count it again.

                I don't mind waiting if it's a car I def gonna buy anyways….

                And you can get $10,000 notes… just go to a bank and get a bank cheque made out to “cash” to the value of $10,000. It’s as good as cash.

                I read you need to pay a fee to get this bill…..so it's not free…..

              • @pegaxs: Pretty standard affair mate, I've brought cars with large amounts of cash.

                1. Get cash out after pre-booking with bank.
                2. Put in a shoebox and put under your seat.
                3. Go pick up car and give owner cash.
                4. Let him count it.
                5. Drive away in your new car.
                • @Zondor: Not saying it’s not doable, it is, it’s just stupid, time consuming, risky, inefficient, cumbersome and not required. When you take it to the bank to deposit it, you have to go through AUSTRAC for everything over $10k. The bank has to count it, then count it again on machine, then count it out manually. My last deposit of $10k cash at my local bank took 30 mins.

                  To give you an idea, $25k is 250 x $100 notes (25 bundles of 10). It’s 500 x $50 notes (50 bundles of 10).

                  1. Time consuming/time wasting, inefficient.
                  2. Risky, cumbersome.
                  3. Risky, time consuming.
                  4. Time consuming, inefficient. ($100 missing will need a recount)
                  5. Yeah. I guess so.

                  Let’s do the same with a bank cheque…

                  1. Walk into bank, request bank cheque, pay $10~$15 fee (0.06% of $25k) No waiting, no pre booking. On the spot.
                  2. Put it in wallet/pocket.
                  3. Give owner cheque. Safer, because only named person can cash the bank cheque.
                  4. Owner looks at cheque and verifies amount matches sale price.
                  5. Drive away in your new car.

                  While I understand paying or receiving large payments in cash can be done, it’s just the most time consuming and risky way to do it.

                  • @pegaxs: FYI ING send the bank cheque via post for free. No fees.

                    Postage options:

                    All bank cheques are sent for free via Registered Post
                    For guaranteed next business day delivery within the Express Post network, you can select to send your cheque via Platinum Express Post for an $11.00 fee. This option requires a signature on delivery and enables you to track your item online. To request a bank cheque via Express Post Platinum ING's cut off time is 3.00pm on a business day, to have next business day delivery.

        • I'm not sure you understand how much cash tens of thousands is, even in $100 notes. And I'm fairly sure you've never had to count that much cash in a public space - it's not fun.

          • @HighAndDry:

            I'm not sure you understand how much cash tens of thousands is, even in $100 notes. And I'm fairly sure you've never had to count that much cash in a public space - it's not fun.

            Actually I have not, the most I've carried was $1000 (also the most expensive single transaction purchase I've made to date as well…) for a graphics card at a local computer store a few years ago and it wasn't that bad either…..dunno what 25k or more cash looks like as I've never seen it in person before or even have that much in my bank balance to pull out and check it out myself even if I wanted to see what it would look like in $100 bills….

            • @Zachary: I think the most I've counted was $10k+ ish once. That was in an office, at a desk, with no wind. And it was already stressful enough. Believe me, you don't want to be handling that much cash in public in any way, much less trying to count it.

              • @HighAndDry: Not sure why the stress, and each to their own I suppose. But I’ve literally carried 20k in pineapples back in the day when I was a teen, and unless you go around announcing it, I don’t see a problem.
                I guess I don’t assume everyone that sees money will rob you like everyone are thieves.

                • @cloudy: assuming you do the deal in public space, not on an empty backstreet, there will be people looking at you handling bundles of $100 notes.
                  it only needs one opportunistic person to rob you 5 mins later

                  • @Bargain80: Well it’s always smart to choose a smart public place, like say, the bank, where you go straight to the teller and bank the cash.

                    Of course, it only take needs one….but that line gets thrown around for everything. I used to walk to school as a 8 year old, now days, it’s locked upon as crazy as it only take one…

                    A lot of people say the world has changed since when I was a kid, but I don’t believe the scare and hype. There has always been good and bad people, I don’t believe somehow we now produce more bad people in society than say, 10,20,30 years ago.

              • @HighAndDry: couldnt agree more. not too long ago a friend of mine sold some jewellery which was under 15k and asked me to count the cash for her. we were sitting in the sellers car with very low lighting and a few times i had to recount just to make sure. dont need that kind of stress in my life haha

        • This guy launders

        • Hope you like counterfeit cash seano2101, because if you're doing a 25k transaction in cash that's what you're getting.

          • @abb: I’ve seen plenty of counterfeits in my life, and most are pretty easy to spot. You can’t assume everyone that you ask to pay in cash has the ability to forge. That would assume everyone can easily obtain fake cash.

            If you asked me to get realistic fake $100 note I don’t know where to start, let alone hundreds of it.

    • Sorry but cash for $25k car is just insanity. No. Bad advice.

  • Explanation of a Bank Cheque here, it is different to a personal cheque!

  • +1 vote

    Obligatory 'Eneloops'

  • Bank cheque only. /thread

    99/100* private car sales go off without a hitch. You’re understandably nervous but if you get a photo of their license, meet up at your bank and make sure they have a bank cheque for the full amount you’ll be fine. Make sure you set the rules before you meet so you don’t waste each other’s time. Double check it’s the person in their license photo. Don’t take some other BS form of ID, it must be their license.

    If anything smells wrong, then bail. But you’ll be fine. If it helps take a mate/family member as well.

    *unconfirmed statistics

    • get a photo of their license…

      Yeah, that’s not happening, thanks anyway… You can have my name, address and license number, as that’s all you need for the transfer. If you think as a member of the public I’m going to let you take a photo of my license, sorry, that car is not for me.

      • Doesn’t stop me asking ;)

        • Oh, I don't mind being asked and I'll show anyone my licence so they can verify details, but taking a photo/copy of my licence, just taking to much risk.

    • My Bike insurance requires me to take possession of test rider's license to be covered.

    • Great advice I’d go for this

    • Bank cheques can be faked and they can be cancelled if reported stolen. Its not easy but can be done

      The best thing to do is to cash the bank cheque in with the buyer to confirm its real and the process has started

  • Fwiw, dealers take bank cheques without a second thought. It's the main way we accept payment

  • What about the instant bank transfers that some banks have now? When I sold my car the buyer paid by transfer and it was in my account within seconds. It didn’t show as a pending transaction either.
    I think only some banks have that facility so far.

    • It is not a horrible back up, but from memory I think there is some way to reverse these by claiming mistake or something? I would be a bit concerned about this.

      • If the seller receives the transfer and then immediately transfers it to another account there's no possible way for the buyer scammer to reverse it.