Private Car Sale - Bank Transfer - What Can Go Wrong?

bizarredeal on 13/06/2020 - 16:08
Last edited 14/06/2020 - 14:22

Dear Ozbargain

Selling my car over the weekend. Priced at (13k). The buyer has mentioned he has no access to cash as the banks are closed (Sat pm). Pick up is on Sunday. He has said he will do a bank transfer in front of me at the time of pick up. I have asked for cash still.

What can go wrong here?
Is it worth seeing the car drive off and the cash is in transit?

Any other work around? New tech for transfer this amount (pay ID)?
Can the banks up the limit temporarily to access that much cash from atm ?

Any words of wisdom/advice?

Thanks in advance.

EDIT:
Thanks to everyone for sharing their ideas and thoughts and setting my mind straight. Appreciate it. Hopefully it will be straightforward from here.

Points taken from the helpers below;
- Cash transaction (King of all other options).
- No bank transfer especially during a non-business day as the transaction can be cancelled. It can also be faked to a certain extent.
- Bank transfer if the buyer is genuine and the funds have cleared to seller account before picking up car. Move the funds to a different account just for a peace of mind (I guess).
- Do the transaction on a business day if there is no access to banks (cash/cheque). Bank cheques can also be cancelled so be wary of this and make sure the funds clear.
- Go to bank for transfer of funds if necessary and have witnesses.
- A bill of sale signed and witnessed is legally enforceable. So get something in writing and also get it witnessed an example:
https://www.vicroads.vic.gov.au/-/media/files/formsandpublic…

For interest:
Buyer arrived with cash on Sunday. Few good things learnt. Thanks y'all.

Automotive

Comments

  • dunderpaper on 15/06/2020 - 21:38
    +2

    I had to make an account just so i can make this comment.
    Dont do it, ive been scammed before with some guy "transferring to me", it never came through and he showed some fake receipt.

    Get the money in cash or wait for it to clear in your bank account if he cant access it. Otherwise it is dodgy.

    • bizarredeal on 15/06/2020 - 22:20

      That's too bad mate. Thank though.

  • olderuser on 15/06/2020 - 21:41

    Did something last year like this sold a car for 7k.
    Pay ID transfer, saw it in my commbank app as 'pending' let him drive away, though the following day it hadn't cleared. Then my account got flagged, and it involved me having to ring the buyer and ask him to ring the bank to authorise his own transaction.
    I was lucky, he was honest!

    Just do cash.

    • bizarredeal on 15/06/2020 - 22:21

      phew.

    • RtN on 21/07/2020 - 22:42

      Yeah had the same thing happen… except the buyer didn't go through with it in the end or was a scam…

  • godofpizza on 15/06/2020 - 23:08

    As a buyer, i wanted to purchase a car from a dealership. I didn't want to buy a $20 bank cheque and I called earlier during the week and mentioned i wanted to pay via eptos ($14k) and they said it was fine.

    i turned up sunday morning to pick up the car and they said they had a limit on eptos transactions of $1000 and wouldn't put thru 14 x $1000 the purchase using a debt card.

    Mind you that i had taken public transport to the dealership (3 hours) and i wasn't leaving without a car. The dealership bus. manager asked me to transfer the funds into their bank account using their PC and print off the transaction. They also printed off an IOU with the outstanding balance and when the fund clear they would email me a new receipt.

    lesson learned, bring a bank cheque if you can't bring cash.

    • SnoozeAndLose on 15/06/2020 - 23:32

      IOU, I own you?

      • kerfuffle on 16/06/2020 - 07:20

        I owe you i.e. godofpizza owing the car dealer …

  • mrsinistah on 16/06/2020 - 10:29

    If they live locally, not worth it.

    I did a bank transfer in front of the seller, as I was buying from Sydney 5hrs away, it was fine. We exchanged driver's license, home address, friend's license, Facebook etc.

  • ebayer007 on 16/06/2020 - 16:31

    Go to a bank & get a cheque together

  • DrRalph on 16/06/2020 - 17:15
    -1

    Glad you didn't go the bank cheque route. That would have been a significant mistake.

  • Toph Beifong on 17/06/2020 - 18:14

    Just bought a car today. Went with the bank transfer option which I did on Tuesday night, seller saw the money Wednesday morning. Called me and I came and picked it up. Too easy.

  • Tiffdawgz on 18/06/2020 - 12:35
    +1

    Hi, I work for a bank and here and I recommend beem it or pay Id. Transfers are instant and on the spot. In terms of daily limit, most bank accounts in the app you can change your daily transfer limit, mines about 30k.

  • Laziofogna on 18/06/2020 - 17:28

    Obviously you'll be safe only when the money is visible on your account.

  • escusemay on 19/06/2020 - 21:38
    +3

    Sold my car recently for $33k. I asked the buyer to call his bank to ensure his daily limit was raised on the day of pickup and check whether PayID is supported.

    On the day of pickup, he did the PayID transfer. I got a text message saying a PayID transfer had been initiated but nothing appeared in my bank. The buyer's bank called him a minute later and was asking to verify the transaction. After he finished the call, I got notification on my CBA app that a transfer of $33k had come through. I handed the keys over and it was a relatively pleasant transaction.

    Would definitely do this again in future as it was quick and easy.

    • RtN on 21/07/2020 - 22:43

      I assume would only work on a weekday?

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