Best payment method for selling a 25k car

Danlew on 26/02/2019 - 20:33
Last edited 26/02/2019 - 20:34

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

Automotive

Comments

  • conservative on 26/02/2019 - 20:45
    +4

    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.

    • Danlew on 26/02/2019 - 20:51
      +1

      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?

      • conservative on 26/02/2019 - 20:51
        +6

        That's why you take the bank cheque to your bank, cash it in, then hand over keys at the bank.
        Park the car outside the bank or near it.

        • Danlew on 26/02/2019 - 20:57
          +2

          I see what you mean. However previously when I made a cheque deposit issued from the same bank of mine, it took 1-2 days to see the funds in my account. I am (over) worrying that buyer can cancel the cheque before funds are cleared. Is this not possible and I’m it wrong?

          • conservative on 26/02/2019 - 21:01
            +13

            @Danlew: Bank cheques are as good as money. They are the bank's money, not the customer's money.
            You can't cancel a bank cheque especially if another bank has processed it unless it can be proven that you stole it.

            • [Deactivated] on 26/02/2019 - 21:23
              +7

              @conservative: So, it's a bank cheque rather than a personal cheque?

              • uncompressed on 26/02/2019 - 21:28
                +19

                @[Deactivated]: That's right. It's issued by the bank, not from his personal account. The person will have to "buy" the cheque from the bank by paying the bank money from his own account. The bank usually charges him a fee for it and issues a cheque from the bank to you.

              • conservative on 26/02/2019 - 21:29

                @[Deactivated]: Very good, cheeky. That's why it is called…..
                "bank cheque"

                lol

            • tight-ass on 26/02/2019 - 22:25
              +6

              @conservative: My brother in-law sold his car and accepted a bank cheque for payment, only for the cheque to be cancelled and the car returned to him the very next day with the engine cooked….the buyer worked at the bank for which the cheque was issued and cancelled it himself.

              • conservative on 26/02/2019 - 22:26
                +18

                @tight-ass:

                the buyer worked at the bank for which the cheque was issued and cancelled it himself.

                ERmmm….that's an extreme case. Employee should be fired.

                • tight-ass on 26/02/2019 - 22:29
                  +2

                  @conservative: Most likely was fired. A report was lodged with the police, but we don't know what the outcome was

                  • conservative on 26/02/2019 - 22:30

                    @tight-ass: The funds could be easily recovered if the bank cheque was cancelled without due process. Pretty sure the bank would sue the individual.

                  • Bryanalves on 01/03/2019 - 15:31

                    @tight-ass: You dont know the outcome? Did you get your money back?

              • macrocephalic on 28/02/2019 - 13:56

                @tight-ass: Then he should be reported to APRA, and he would face job termination, criminal charges, and the bank would receive large fines (and he wouldn't be able to work in banking again).

                As part of my job I have to get clearance to work on many bank and government systems. I would get in huge trouble for even viewing my own records through their systems.

              • Bargain80 on 28/02/2019 - 15:07

                @tight-ass: wow

              • Faulty on 04/03/2019 - 19:54

                @tight-ass: Lesson: Don't sell car's with bank cheques as a payment method to bankers w@nkers

            • HeWhoKnows on 27/02/2019 - 16:29

              @conservative: Or you sign a stat dec to say it has been lost

      • macrocephalic on 28/02/2019 - 13:52
        +2

        You're thinking of a personal cheque. Bank cheques can only be cancelled in very specific circumstances - you can't just call your bank and do it.

        A bank cheque is essentially currency issues by the bank.

      • CLoSeR on 01/03/2019 - 13:11

        You should go with him/her during test drives otherwise your insurance is invalid.

    • Spam Service on 01/03/2019 - 08:04

      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.

      • conservative on 01/03/2019 - 08:11

        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.

        • Spam Service on 01/03/2019 - 08:22

          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.

    • Fizzydrink on 01/03/2019 - 14:21

      dont hold onto licence… go with them

  • bobbified on 26/02/2019 - 20:48
    +1

    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.

    • HighAndDry on 26/02/2019 - 20:51
      +13

      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).

      • Zachary on 27/02/2019 - 00:08

        What's a GFC?

        • HighAndDry on 27/02/2019 - 00:44

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

          • Zachary on 27/02/2019 - 16:26
            -2

            @HighAndDry: oh, has it ever happened?

            • HeWhoKnows on 27/02/2019 - 16:31
              +3

              @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 on 27/02/2019 - 16:38
                +7

                @HeWhoKnows: lets seee, what was I doing in the last 10 years? ….oh yes, mainly playing video games and school…..

                • HighAndDry on 28/02/2019 - 12:43
                  +3

                  @Zachary: I guess it's a sad indictment of our public education system that in 10 years of schooling they didn't teach you about the GFC.

                  • Zachary on 01/03/2019 - 20:56

                    @HighAndDry: …well there are different levels of classes, at least at the one attend(ed) so i must have been at the bottom on all of them……

            • HighAndDry on 27/02/2019 - 16:40

              @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.

      • T1OOO on 28/02/2019 - 17:32
        -3

        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.

        • HighAndDry on 28/02/2019 - 19:29
          +2

          U wot m8?

        • OzzyBrak on 28/02/2019 - 20:38
          +3

          this joker has never seen a bank cheque in real life by the sounds of it.

    • Danlew on 26/02/2019 - 20:52

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

      • HighAndDry on 26/02/2019 - 20:54
        +3

        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.

        • jjjaar on 26/02/2019 - 22:34
          +10

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

          But without the fun, really

          • DonWilson on 28/02/2019 - 09:45

            @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.

        • Typical16-bitEnjoyer on 28/02/2019 - 12:32
          -1

          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.

          • HighAndDry on 28/02/2019 - 12:34

            @Typical16-bitEnjoyer: 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.

            • Typical16-bitEnjoyer on 28/02/2019 - 12:39

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

              • HighAndDry on 28/02/2019 - 12:46

                @Typical16-bitEnjoyer: 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.

                • Typical16-bitEnjoyer on 28/02/2019 - 13:15

                  @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.

                  • HighAndDry on 28/02/2019 - 13:34

                    @Typical16-bitEnjoyer: 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.

                    • Typical16-bitEnjoyer on 28/02/2019 - 14:16

                      @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.

  • mreddie on 26/02/2019 - 20:50

    Bank Cheque with verify of ID

  • HighAndDry on 26/02/2019 - 20:50

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

  • [Deactivated] on 26/02/2019 - 20:53
    -1

    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.

    • Tee Rex Arms on 26/02/2019 - 21:22
      +3

      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.

      • [Deactivated] on 26/02/2019 - 21:25
        +6

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

        • pegaxs on 26/02/2019 - 23:35
          +7

          @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.

          • Zachary on 27/02/2019 - 00:05
            +2

            @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….

            • pegaxs on 27/02/2019 - 08:35
              +4

              @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.

              • Zachary on 27/02/2019 - 16:28
                -1

                @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…..

              • Zondor on 28/02/2019 - 10:43
                +2

                @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.
                • pegaxs on 28/02/2019 - 11:31
                  +7

                  @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.

                  • A Banana4scale on 01/03/2019 - 16:46
                    +1

                    @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.

        • HighAndDry on 27/02/2019 - 11:45
          +2

          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.

          • Zachary on 27/02/2019 - 16:32
            -5

            @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….

            • HighAndDry on 27/02/2019 - 16:33
              +3

              @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.

              • cloudy on 28/02/2019 - 05:15
                +1

                @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.

                • Bargain80 on 28/02/2019 - 15:18

                  @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

                  • cloudy on 28/02/2019 - 17:40

                    @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.

              • chuckles89 on 28/02/2019 - 12:07

                @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

        • smpantsonfire on 27/02/2019 - 18:20
          +1

          This guy launders

        • abb on 28/02/2019 - 09:14

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

          • cloudy on 28/02/2019 - 17:42

            @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.

    • Skramit on 26/02/2019 - 21:52
      +10

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

      • [Deactivated] on 27/02/2019 - 00:14

        Plus you need to give the bank a notice to get that much out unless your lucky.

        • Daabido on 27/02/2019 - 07:30
          +1

          What's my lucky doing?

  • iforgotmysocks on 26/02/2019 - 21:17

    Bank cheque

  • Master Bates on 26/02/2019 - 21:19
    +3

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

  • [Deactivated] on 26/02/2019 - 21:28
    +1

    Obligatory 'Eneloops'

    • djkelly69 on 26/02/2019 - 21:58

      What about fake Eneloops though??

  • Skramit on 26/02/2019 - 21:51
    +6

    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

    • pegaxs on 26/02/2019 - 23:39
      +3

      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.

      • Skramit on 27/02/2019 - 10:40

        Doesn’t stop me asking ;)

        • pegaxs on 27/02/2019 - 14:41
          +4

          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.

    • Nalar on 27/02/2019 - 02:23

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

      • knk on 28/02/2019 - 09:21

        But legally they can't ride the bike without their license on them….

        • Tunblor on 28/02/2019 - 13:36

          They can't ride it on public roads without it, yes. Car-parks and other private property, fair game.

    • Danlew on 27/02/2019 - 11:53

      Great advice I’d go for this

    • Herbse on 27/02/2019 - 21:04

      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

  • spackbace on 26/02/2019 - 21:55
    +5

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

    • djkelly69 on 26/02/2019 - 21:59
      +4

      Likewise for solicitors dealing with properties worth 10-1000x more than this car.

      • Skramit on 26/02/2019 - 22:02

        Yeah but in fairness solicitors/conveyancors aren’t dealing with randoms off the street trying to get a bargain / lowball on your vehicle.

        • djkelly69 on 26/02/2019 - 22:05

          I mean they may not be random lowballers off the street, but in a big city they are often pretty much randoms to you.

        • HighAndDry on 27/02/2019 - 11:46

          No, but it's generally good practice to treat everyone as if they were. Plus, for some transactions they may as well be.

    • BartholemewH on 27/02/2019 - 18:18
      +4

      Very lenient, I've never heard of a drug dealer that accepts bank cheque.

      • cloudy on 28/02/2019 - 05:05
        +2

        How many drug dealers do you know?

    • Shwayne on 01/03/2019 - 12:09

      Yep but they'll wait for it to clear (confirm validity) before giving away any keys.

      • spackbace on 01/03/2019 - 12:39

        No, they won't.

  • Amaris on 26/02/2019 - 22:05
    +1

    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.

    • djkelly69 on 26/02/2019 - 22:23

      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.

      • abb on 28/02/2019 - 09:17

        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.

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