Q.
I am contemplating purchasing a car (not finally chosen yet), and it will cost several thousand pounds. Probably a private purchase.
When researching it seems every possible payment mechanism - even cash - has horror stories associated with it
If the seller is a private individual, is there any reason I cannot offer to go with them to THEIR bank, and make a payment into THEIR account with a debit card?
Vortex10 wrote, on 19/07/2011 06:09:
I've pondered this myself, as I'm contemplating selling soon. I've never used a Debit Card at a bank branch myself to pay a bill, so I'm not familiar with the process. Presumably it would be classed as a cash transaction, therefore non-refundable, but I haven't seen any PIN readers in banks to verify the holder's use of the card.
If not, perhaps another suggestion although a bit messier. Why not go to your (buyer's) bank branch, withdraw cash and hand to the seller inside the bank in return for the keys/documents/receipt? The seller can then immediately send the cash to his own account at another bank using a credit slip at that branch, or walk away with the cash - his choice. Being inside a bank branch is probably as safe as anywhere from being mugged for the cash unless you are *really* unlucky.
Barclays do, but that's when I'm using my card to identify myself at a branch of my bank. But after I've entered the PIN they'll accept CHAPS instructions for £10's of thousands with no further identification (they do take a signature and mobile number to call in case of problems, whether the signature is checked later I don't know, but the money is transferred within hours).
Last time I did that, there was a £25 charge:-(
regards
>
Hopefully this would be safe. There are problems with some forms of transfer where they appear to have been accepted but then the funds fail the final clearing process about 3 days later. I think this is mainly with clearing cheques, though. I have noted that the 'instant transfers' now available between accounts sometimes seem to have a limbo status for a couple of days. BACS sounds a good way to go.
There are quite a few about the cars in private transactions too. If I were thinking of buying second hand, I would only go to a dealer.
Card transactions also take three days to clear, but that is from when the terminal is polled, not from when the transaction takes place. Thus, the funds from a card transaction on a Monday may not be available as cleared funds until Friday. There is, of course, also a 180 day period during which a charge back can be applied, although the bank will defend that for a PIN verified transaction.
They only work quickly if both banks are part of the scheme. Payments to HM Revenue and Custom, for example, always take three days because they are not. OTOH, transfers within the same bank group can go through within minutes. I used to have a customer who would phone in an order, get the price, walk next door to the bank, make the transfer and phone us back when that was done. The money was always in the account when we checked.
Colin Bignell
In general, the motor trade is the most dishonest you are likely to find in any dealings. Makes the double glazing industry seem like saints. And the dedicated secondhand trade perhaps the worst of all.
Bankers cheque.
As good as cash
Most people handle banker's cheque very rarely and, unless presented, might doubt its authenticity.
Not last time I checked - the principal problem being possible forgeries (from the buyer's POV).
I was thinking more of a manufacturer's dealership.
Colin Bignell
Nothing to do with the payment side of things but a very important point is the increase in owners taking out loans secured on their cars. There was a program about it a few months ago (may have been watchdog) where they reported that, due to the current financial climate, there has been a significant increase in the number of people taking out loans secured against there cars. They then sell the cars on and default on the loan payment which results in the car being taken by the loan company. This leaves the buyer out of pocket as the loan companies have legal ownership of the car. Apparently these types of loans are not picked up by the current HPI/credit checks that you can get on a car which is why so many people are having problems.
I have only ever sold 1 car privatly. They gave me a bankers cheque which I paid in and waited for the funds to appear before handing over the car and registration document. I gave them a receipt for the cheque but I couldnt help feeling that the process was all very risky.
And then only if the amount is below the "house limit". Some banks have ridiculously low limits like =A3250 for faster payments.
MBQ
As I have said before - a vehicle bought privately in good faith cannot be repossessed by an HP company, this rule was specifically bought in by an act of the 1970s (or so). Thus an HPI check on a private purchase is unnecessary and could even be construed as making the purchase not 'in good faith'.
I don't know if the same law would apply to a car purchased which has a loan on it though.
The thing that I always wonder is why the buyer always thinks the risk is all theirs, the risk is just about the same for both buyer and seller isn't it? I.e. it's just as easy for the seller to disappear while 'waiting for the cheque to clear' as it is for the buyer to take the vehicle leaving the cheque to bounce.
They're not much better. My local one had several judgments against it from trading standards, and closed down. Part of a chain, too.
However, generally if you want a newish car you have little option but to use a dealer. Once they get older, the choices increase.
Santander being one of them.
This was a third party loan arrangement so the HP rules did not apply. I saw the programme too and was v surprised about the loophole that let these agreements not show up on checks against the car's history.
Nope.
On payments, last time I sold it was cash. These days I would insist on CHAPS transfer from their bank with me present during the transfer.
So is a suitcase of cash.
Or a large wallet full. Iv'e carried in excess of several thou in cash on a couple of occasions.
You do have some reasnable chance to verify the notes - when I sold a car for a grand odd, I read up on the bits to check and gave a random sample of notes a pretty good eyballing. I felt happier with that than a bit of paper that the bank could turn round and refuse to honour.
a phione call to the issuing bank is all it takes.
"Did you issue a bearer cheque?" "Is it valid?" "Does the drawer have funds"
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