Taking Payment
After you have negotiated and agreed a price, make sure you take a deposit if the buyer is not taking the car that day. This should be a cash deposit and the amount should reflect the value of the car and be sufficient to pay for any losses you incur if the buyer changes his or her mind.
A £20 deposit for a £10,000 car is obviously not enough - you should expect to take at least £200. In other words, it should be enough to discourage them from failing to turn up to collect the car at the agreed time. Politely explain the deposit is non-returnable - afterall, you will need to re-advertise the car if they change their minds.
There are several ways to pay the balance. Here are the pros and cons of each one:
- Cash. The simplist way to do the deal. Bear in mind, though, that it's ok to ask for cash for a £1000 car, but people will be reluctant to bring £20,000 for a Range Rover. There's also the point of you keeping money secure until you get to the bank yourself. If you are taking cash, remember to count it carefully in front of the buyer and make sure the notes are genuine - honest buyers won't mind. Remember there's no 'come back' afterwards if you haven't got the money you thought you had - so count carefully!
- Internet cash transfer. This is a quick and safe way of having your car paid for. All the buyer needs is your account number and sort code - do not give them any more information than that. Contact your bank to make sure the funds have cleared before releasing the car if you are unsure about anything.
- Cheque. If the buyer is going to pay this way, make sure you allow time for the money to clear in your account before releasing the car. A genuine buyer will not mind as this allows them time to sort out insurance etc. before picking the car up. Never let the car go without ensuring the funds have cleared in your account first.
- Banker's draft. This is a very popular method for higher priced vehicles. It is much like a cheque, except the funds are guaranteed. These can be forged just like cash, however, so be careful. It's best to go to the banks together before handing over the keys - certainly make sure you have paid it in to your bank before doing so.
