How to manage a private sale

Tarquers · Jun 16, 2018

having agreed a sale to some excellent new owners, we all sat around wondering what is the best way to transfer both van and money. Bank transfer would be preferred by me but how do I give reassurance to the buyers when they are transferring what is a large amount? Equally I can’t just hand over the van without taking payment.

Any advice on how to manage this process best so it is painless for both parties without either party feeling exposed? Are managers cheques still used for this sort of thing or is there a private sale contract or similar? Not sold a vehicle for this amount before so helpful pointers would be appreciated.

thehorse · Jun 16, 2018

With my bank (nationwide) you can do a free back transfer up to £10K, but you can do it multiple times and every time I've done it the transfer has been pretty much instant with the funds showing in the recipients account in less than 30 seconds. When I bought my last car I transferred the cash online at their house, they checked it had gone in then they handed the keys over.

To give me some partial protection, I put the car reg in the comments field, so if they had refused to hand over the keys I would have had a copy of the advert showing they were selling the car and a record I had transferred the money to them. I probably should have got them to write a letter saying they agree to transfer ownership once an amount of £xxxxx had been transferred to be extra safe, but they seemed very trustworthy.

Fast Freddie · Jun 16, 2018

I’d advise calling your bank and checking how secure an electronic transfer is. I was shocked to understand that you can see money in your account which can actually be removed if the behind the scenes processes spot a problem downstream. As an example, and I know cheques are a bit different, I learnt that after the money showed in my account there was still a period of something like 7 working days where the transaction could be reversed.

Having said that I have paid for new cars in a dealership via a debit card having pre agreed it first. Check with your bank to understand the true position as it’s too big a sum to take a chance on.

Hope that helps!

WelshGas · Jun 16, 2018

Fast Freddie said:
I’d advise calling your bank and checking how secure an electronic transfer is. I was shocked to understand that you can see money in your account which can actually be removed if the behind the scenes processes spot a problem downstream. As an example, and I know cheques are a bit different, I learnt that after the money showed in my account there was still a period of something like 7 working days where the transaction could be reversed.

Having said that I have paid for new cars in a dealership via a debit card having pre agreed it first. Check with your bank to understand the true position as it’s too big a sum to take a chance on.

Hope that helps!

According to Lloyds money transferred by Internet transfer takes 3 days to be actually in your account, and usable by you, although it may show as being present immediately.
Had an account with £2k in it. Internet transfer of £10k into account making an on-screen total of £12k. Couldn't immediately transfer out £10k as over overdraft limit and that lasted 3 days, virtually to the hour.

Another way for the banks to make a profit of you.

Trebor · Jun 16, 2018

Can the Club get a legal opinion and produce forms and procedural advice ? The Rya do this for sale of boats ( I know that this is a much bigger organisation though ).

johnyboy · Jun 18, 2018

I feel a business idea forming....

Max-Felix · Jun 18, 2018

Won't repost it all but same advice as similar topic a few days before yours:

https://vwcaliforniaclub.com/threads/secure-cash-transfers-for-cali-sale.25057/#post-287444

Jay586 · Jun 18, 2018

Last time I sold a car, the guy brought his laptop & did cash transfer, taxing & dvla, all whilst stood in my kitchen. Very impressed with him!

However, with more money like this I'd talk to the bank & see how long a transfer will take as there is usually limits, as discussed above. Still safer than any other method, I think. Someone has to trust at some point, tho delays can cause distress, so best to talk to the bank.

Lott · Jun 18, 2018

When I bought our California we drove to the bank, did a CHAPS payment there and then (small fee) then I drove it back to his house where he transferred the vehicle on DVLA website.
It was painless, but I too was quite concerned about it beforehand.

Ryemslie · Jun 18, 2018

We bought our cali in February. I had spoken to my bank (TSB) prior to transfer to highlight the large sum that would be transferred. I also advised the seller to do the same. The seller never had an online account so once I transferred the money which was 25k worth I showed him the transfer confirmation on my internet banking & hung around until he had called his bank & everyone was satisfied that the transfer had went through. The remainder was done in cash.

2into1 · Jun 18, 2018

CHAPS is secure but can be clumsy with the timing. It’s done by staff who do it when they get around to it....on the day requested but not ‘instant’ like internet banking transfers (which are usually limited to £20k per day).
Also, the last CHAPS I was involved with asked for the sort code and account number again, despite the details already having been set up and used successfully for the deposit.....meaning any error in transcription could have sent £30k into the wrong account.
If you've got several accounts, each with £20k daily limits, you can send 20 from both which might get you there.

Lott · Jun 18, 2018

2into1 said:
CHAPS is secure but can be clumsy with the timing.

I agree, that’s why my bank manager advised me to do it manually in the branch. That way the buyer knows they will have the money in their account that day. If you do the CHAPS online it often takes longer than a regular BACS payment apparently.