Ensure your payment is made safely
No matter whether you're buying or selling, a smooth payment is the best way to end a successful transaction. Here, we explain how to take the risk out of making or receiving a payment using the main options that are available. Whichever method you choose, though, never send money for a vehicle you haven't seen.
How to spot a Fraudulent Payment
When you’re selling a vehicle, it’s important you know how to spot the signs of a possible fraud. No matter how trustworthy the buyer you're dealing with appears, obey the following rules:
- Never send money abroad.
- Never pay a large deposit.
- Don’t hand over your vehicle until you’re satisfied the funds are in your account. Check with your bank that you can withdraw funds safely on the cheque.
- Remember that your bank will not honour fraudulent drafts or drafts that cannot be cleared through lack of funds.
- Don’t be pressured into releasing your vehicle. A genuine buyer will not mind waiting until the draft has cleared.
Precautions when dealing Cheques
When you're selling a car, you should be aware of the possibility of receiving a forged bankers’ cheque.
- The typical scenario will run something like this:
- First, you receive a cheque from the buyer
- Days later, your bank informs you the cheque was forged
- The result is that the buyer has already taken posession of the vehicle and you’re left without payment
What ever mode of payment always take precautions
- When receiving cash, ask for the money to be handed to you in a bank, where the notes can be checked for forgeries and paid in immediately
- If you take a cheque, never let the buyer have your vehicle until the funds have appeared in your bank account, as the cheque could be forged, cancelled or stolen
- Bank drafts, contrary to common belief, are not as good as cash, so treat them just as you would a personal cheque
- An online bank transfer is one of the safest ways to pay, as it avoids having to handle large amounts of cash and the problems associated with cheques
To safeguard yourself, don’t release your vehicle until you have confirmation the cheque is genuine and has been paid by the buyer’s bank. Check with your bank to ensure the draft has been ‘given value’ rather than merely ‘cleared’.
