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How to pay for a car? | Nissan Micra News & FAQs

Q&A

Added: 22 Sep 2008
Last update: 23 Sep 2008

Question

When buying from a private seller, what is the best method of payment to use? Cash or banker's draft?

There could be a delay in picking up the car if the seller wants to wait for it to clear before releasing the vehicle.

Any advice?

Thanks

Answer

Hi

This is never easy.

It is best to be clear on what not to do: Don't pay someone and wait for the cheque to clear before taking delivery. Equally don't give someone your car before a personal cheque has cleared. Both are too risky. So that rules normal cheques out.

If the seller is prepared to take a banker's cheque (often called a draft) then that is probably best.

You call your bank and get the cheque prepared. You should also ask for the branch manager's name and number. You can give the seller the cheque which is from a Bank, not you, so that they know it will clear and they can call the manager too if that helps them.

If that won't was with the seller, cash is the way to go.

Ask for £50s as it will be less bulky. Keep the bank receipt and envelope as it will re-assure the seller that the £50 notes are genuine (they are one of the more commonly forged note).

If the seller checks the notes have a watermark and silver line in them then hopefully everything will be OK.

but you could go to the bank together in the car and bank the money if the seller wants extra peace of mind - but I think that is a bit over the top.

 

Keywords: escrow, buying-from-private-seller, cash-or-bankers-draft

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