Accepting a Bankers Draft on car.
 

Guys

Looks like I have a potential buyer for the car coming over tomorrow to see the car, if he's happy with it he wants to take it away there and then as he's from the Midlands and doesn't want to make multiple trips. He intends to bring 2 Bankers Drafts, one payable to my finance co and the other to me. I've not done this before but seems the sensible way to do it as I owe finance on the car, my only concern is the validity of the Bankers Drafts. If I phone his bank will they conform there validity? Will they actually speak to me (confidentiality). Anyone been in the same position, what did you do???

Any advice appreciated.

Dave

I think like u say Dave if u phone the bank with the details of the bakers draft they should be able to confirm funds are in place or not

even bankers drafts can be faked well, they can be paid in, apear to clear etc, then when the bank finds out they will claw the money back.

I would seriously advice speaking DIRECTLY to your bank, and seaking advice.

Most likely be perfectly OK but you mention one is to the finance company indicating you still owe on the car, loosing your car is bad enough, but still having to pay for it also would be a disaster.

Hope all goes well:)

as said above, bankers drafts can be "cleared" when you ring the bank, however there is nothing to stop the person stopping the draft once he has taken the car.

I personally wouldnt let the car go until it had cleared.

cheers

If they are giving you bankers drafts for an amount larger than the agreed sale value, then don't do it, Happened to me when I was selling my scoob

when he gives you the draft, go to the bank with him to pay it in together

Cheers guys, getting a bit nervous with this now!!! The guy originally wanted to pay cash, then when I told him I owed the finance co he obviously wanted to be sure I'd pay the finance off (understandably) so then suggested the BD, party to the finance co the other to me. The probablem is that the draft is not a substitute for cash and can be withdrawn if fraudulent...

In a pickle :)

if he is giving half and half, cant you ask for the bankers draft to be banked first and then once that has cleared he can come with the rest of the cash and then take the car??

Yep nail on the head there !!

I Would 100% Not accept the BD Dave ( Not for that sum of money anyway )

I Know a mate who got turned over like this , Believe me even if the bank say it is fine @ the time & Honour it , If @ a later date it is found to be duff / Fake then they have the right to claim the funds back from you

How i do not know if in the 1st instance they say it is fine , But guess that's just how it works :wonder:

Cash all the way

All imho of course

Best of luck

:thumb:

Problem is Tiny is that (looking at his point of view) if he pays me cash there is no guarantee that I will pay off the finance, therefore the finance co will own the car not him. I can certainly see his point too but it's it's a bit of a stalemate...

Thanks for the responses :thumb:

dont take bankers draft!!! know someone who got royally screwed over with a fake!!

make contact with you finance co and find their nearest branch to you. Then when the buyer comes down you can go with him to pay the outstanding balance on the car and take cash for what is owed to you.

If the bank he uses have a branch local to you then arrange for you both to go to that branch to collect the BD, then go straight to your bank and pay it in. No chance of it being faked.

Cash is a potential liability too, as he or his associates know you have oodles of cash in the house ! :wonder: Agree an exchange date passed the cheque clearing period and wait for the finance company to confirm the debt has been repaid. If its a genuine buyer he will want to know this too.:thumb:

my friend had this issue on wednesday when he sold his car, i went into the natwest who confirmed a bankers draft is no longer cleared funds, it still needs to go through the channels, and they told him not to release the car until the funds were showing as cleared in his account

Cheers guys, told him I can't accept a BD (phoned my bank to confirm that it's not cleared funds) Suggested that I pay the finance off on Monday and then he pay for it in cash (deposited and verified) in my account. If he's gunuine I'm sure he'll wait an extra few days...I know I would.

Dave the easiest & safest way without having to lug suitcases of money around is to do the deal by electronic transfer. See para 3. :thumb:

CHAPS is an electronic bank-to-bank same-day value payment made within the UK in either sterling or euro.

The main benefit of CHAPS is that it is fast, secure and efficient and the money is transferred the same day. Unlike other forms of payment such as cheques, CHAPS payments are irrevocable.

CHAPS is one of the largest real-time gross settlement (RTGS) systems in the world. Banks themselves use CHAPS to move money around the financial system, but it is also used regularly :-

1. For business-to-business payments.

2. By solicitors/licensed conveyancers to transfer the purchase price of a house between the bank accounts of those involved.

3. By individuals buying or selling a high-value item, such as a car, who need a secure, urgent, same-day guaranteed payment.


APACS - CHAPS


Mark ;)

This might sound stupid and It might not even be able to be used but I know you can transfer money via Paypal but not too sure how much money is alloud to be transfered at one time?

To be fair, most people have an opinion regarding this, but that does not mean its fact.

I would Speak DIRECT to your bank, once they confirm monies are cleared and secure, then your safe. This then puts you in the clear, if there are any probs after it is the banks responsibility to chase.

again all IMO of course ;)

Think that is very good advice from Flat Eric.

Quick and safe. :thumb: