this is pretty important and i need to get a definite by 6 tonight, is a bankers draft from say HSBC, lloyds, or halifax as examples, ok to accept as payment for a car sold privately?
the car is selling for £5000 and obviously we need to be 100% this is safe before we release the car.
can they be faked? the buyer is genuine from what i can see but just in case.
cheers.
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Andy30
Yes, they can be faked - this Sunday's Sunday Times Money section had a letter from a chap who had lost £15,000 due to a forged draft. The only sure way is to wait until your bank has confirmed that everything has gone through O.K.
S6 1SW
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my last 3 car purchases have been paid for by bank xfr. the charge isnt significant for chaps (£20?). In fact the last time, the seller used the same bank as I did and a quick phone call to the bank got an immediate xfr for no charge.
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A few years ago I bought a car from a guy that was a manager for Halifax. When I said that I wanted to pay by Banker's Draft, he requested that I get a contact name from the issuing branch so that he could ring (during business hours)and confirm the draft's details even though we did the actual "transaction" later that evening at our convenience.
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There was a full page devoted to this subject in the motoring section of the telegraph a few weeks ago the man lost nearer £25,000 on his car.
If you are not 101% sure on this one then dont proceed as already said until the money is in your account these bankers drafts were at one time watertight but are not so good anymore with clever criminals about and super duper printers available for £100.
Ring your customer up tell him your concerns and most genuine people will understand you can then arrange to meet him at your bank later in the week for an electronic transfer .
--
\"a little man in a big world/\"
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Yes they can be faked and the bank can credit it in 3 days but if it is a fake it can be debited up to 4 weeks later.
Only safer course is to take the Lloyd's cheque to a Lloyd's bank and put it in as a fast clearance. This will more or less cover you and the final touch is to take the punter's picture at the front of your car showing his/her face, the cheque and the car reg.
If he is a thief the last thing he wants is a photo for you to take along to Plod.
In a story to a motoring section last week a punter accepted a certified cheque for £18K that bounced (forged) - the car was found stripped so our seller is out of pocket with no hope of getting cash from a stone - the thief is in custody but has no assets.
Remember there is amssive difference between a Bank Draft (certified cheque) and a an ordinary Building Society Cheque.
Lots of bank & building society cheques are stolen/lost every year.
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I'd suggest a photo plus ID eg passport/driving license - nothing to hide = no reason to refuse your request.
To be on the safe side ask for independant address ID as well, eg BT/other utility bill.
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Been said but NO NO NO.
Before you release the vehicle you need confirmation from your own bank that the bank draft is genuine and has been paid by the bank issuing the draft.
You need to ask whether the draft has been 'given value'. You need this in writing or if verbal record the conversation and take the persons name.
'Given value' means your bank has received the actual cash. This is not the same as 'cleared'. Cleared just means your bank lets you draw cash on the draft after three days. This is in essence an interest free loan from your bank until they get the cash. If the draft bounces you are fully liable to repay the amount.
Same same for cheques.
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Personally,I would only accept cash payment.The purchaser can meet you at your bank and wait while you pay it in.This is what I did last time I sold my car.£14500!.
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Yes cash only, and at the bank where they check for forgeries.
Other than that its a wait period for any cheque, or draft to clear.
------------------------------
TourVanMan TM < Ex RF >
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If they're going into the bank to get a draft, they might as well do a CHAPS transfer whilst they're there.
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Other than that its a wait period for any cheque, or draft to clear.
...but in theory it could be up to 28 days before it "bounces"!
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thinking about it if she has cleared funds for a bankers draft from her bank, why can't i just have cash?
yes its 5k, but in £50's is only a padded envelopes worth?
she alos offered a bank transfer but that would take a few days, so she must be thinking that she has cleared funds in her account.
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Two types of bank transfer:
1. Telegraph transfer/CHAPS - takes 2-3 hours, should be in the receiving account same day, so long as it's done by about 2.30 pm - costs £20-30, depending on your bank. No cost to recipient. Funds are cleared on arrival, so no danger of it being withdrawn at a later date. This is what is used when you are buying/selling houses, for example.
2. BACS - the method used when you have a monthly standing order for example. Can be withdrawn by the sending branch if you go O/D. OK for your smaller, regular payments, but not watertight for recipient. No cost to sender or receiver.
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To confirm #1 above - SWMBO went to branch and sent funds by CHAPS at 11.30 am, and then we set off to fetch the motor. He checked on-line at 1.00 pm and it showed on his a/c, so he gave us the keys....
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thinking about it if she has cleared funds for a bankers draft from her bank, why can't i just have cash? yes its 5k, but in £50's is only a padded envelopes worth?
Have you tried moving large amounts of notes around lately? Expect to get the 3rd degree...
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So long as you are paying it in to your own account you should be fine. The automatic reporting limit used to be £10,000 - but it may have been reduced post 9-11 and 7-7.
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Bankers draught only okay if you verify with the issuing branch that it has been issued. Other methods I have used are direct internet banking transfer and my debit card which I paid for my wifes car (£8,000) at a car supermarket.
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"yes its 5k, but in £50's is only a padded envelopes worth?"
It's a bit Eastenders is n't it?
I'd go for building society cheque or cash handed over at the bank. One buyer showed me his building society book to prove that the cheque was legit.
_______
IanS
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This is an obvious worry. On the last 2 cars I have bought and sold the seller bought the car to my house, after I had seen it at his house etc. We both went to Barclays in my car, where he was a customer and drew the money in cash from my wife's Barclays account, but not literally as he then 'paid in the money', in cash into his Barclays account at the same time. He was happy as it was cash and could not bounce. I was happy as the car was on my drive.
On the previous one, the car was on my drive, and we went to the Abbey where he took out cash. Next door was a Barclays where I paid the money into my wifes account. Had an HSBC been near, I would put it in mine.
In both cases the car is on the drive and both parties TOGETHER move the cash. Seems to work well.
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>"yes its 5k, but in £50's is only a padded envelopes worth?"
It's a bit Eastenders isn't it?
Can't say I'd mind £5k in cash, but I'm ugly, and I live in a low crime area where I'm more likely to get knocked over by a pensioner on an electric scooter than a crim with a cosh. My dogs are even uglier.... I've regularly had that kind of sum and more about the place to pay suppliers, buy trucks, horses etc. I do also have CCTV on the entrances.
If I was a 5'0" lady I'd be asking for an e-payment of sorts.
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Just had an old fashioned deal. Bought me new bike by cheque. The seller is a friend of a friend's friend's friend, never met him before. Before a technical issuue intervened (lgaility) he was happy for me to ride away on it.....that's how it should be - if only.
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Probably won't be too many "Old fashioned deals" in the future if Currys have anything to do with it.
I visited a large Currys store in Essex today and they have a large notice on the door stating that they no longer accept personal cheques as payment for items.
I'd be very interested to know whether this is all branches or just the one that I happened to visit.
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I visited a large Currys store in Essex today and they have a large notice on the door stating that they no longer accept personal cheques as payment for items.
Who still uses cheques for everyday purchases? I don't believe I've used a cheque in a shop since I got my first debit card in 1987. Shops don't accept cheques without a card and if you have a card, there's no need to write a cheque. I have recently finished using a cheque book that I started in 2001.
Returning to the topic, when I worked in a bank, there were two popular options for car buyers: special clearance (same day clearance involving a phone call and a fee), and a more informal arrangement whereby someone paying a cheque into a bank could find out whether it was likely to be paid. We would receive a call from the receiving bank and, if there were sufficient funds in the drawer's account, we would say that if the cheque were 'in our hands and in order' it would be paid. I don't believe saying so put any obligation on the bank to pay it and we had no way of knowing what would happen to the account in the time it took to clear the cheque.
I don't know what measure of security these measures gave or whether they're still available.
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I've accepted loads of drafts out of hours for amounts up to £40k. As the buyer needs to collect it several hours beforehand, I get them to scan/email or fax me a copy when it's in their hand. I then look up the bank's number and call them myself to verify it's genuine.
All the major banks have been helpful over the phone confirming issue of the draft before the buyer comes to collect the car.
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When i worked for Toyota we used the same method as mutton geoff - phone the branch at which the draft was drawn and confirm it as genuine.
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would you believe it she pulled the plug last night anyway.
she saw a jazz at a dealer for the same price even though it had "a few more miles"
18k more to be exact, she was a first time buyer and clearly had no idea about car values.
stupid me didn't take a deposit though... doh..
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Better luck next time - it happens to the best of us.
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Time to put it on Ebay.
Post it tomorrow, Thursday, on a 10 day sale, and it will finish on a Sunday or on Sunday for a 7 day sale). Gives more people more chance to see it, and they'll bid it up on Sunday evening instead of watching Antiques Roadshow, Heartbeta, The Royal etc. Aim to get the sale to finish say 8-9 pm - you can pay a wee bit extra to specify the start time, and it will finish exactly 7/10 days later, to the second.
Don't set the reserve too high, or you will put buyers off. they'll push it quite high enough for you to be very satisfied. I'm assuming that you don't live in West Cornwall, Skye or Inverness.
Take at least 10 photos on a bright day showing all panels, interior, speedo and supporting docs such as MoT and SH. Make it clear they bid to buy, not to come an tyre kick. Look at plenty of car ads on Ebay, and copy their best bits. Put in a obile no. for people to call, as some may want to view. They may even make you an offer on the spot.
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Better safe than sorry, andy.
However, next time you know the drill... and hopefully somebody else who has read this thread will be more wary in future.
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