How should I receive payment for my car?
Does someone want to buy your car? That’s great news but now you need to decide how you'd like to be paid.
Does someone want to buy your car? That’s great news but now you need to decide how you'd like to be paid. There's a bunch of payment methods to choose from when selling your car – pick whatever option works best for you.
Before accepting payment for your car, remember these tips:
- Don’t hand over the keys until you’re sure the money is in your account.
- Don’t let the buyer pressure you into accepting less money, or into handing over the car – only do so when you’re comfortable.
- Wait until you have proof of payment (bank transfer) or until the money has cleared (cheque).
Bank transfer is the best and most convenient way to receive payment – it also gives you a record of the sale.
Meet with the buyer and have them transfer the money in front of you. If you're with different banks, there may be a delay in the money going into your bank account. Wait until the payment has been processed and the money is in your bank account before handing over the keys.
Make sure you sign a vehicle sale receipt as a record of the agreed payment terms.
It’s getting rarer for people to use bank cheques, but be prepared just in case.
Once you receive the bank cheque from the buyer, take it to your bank and deposit it into your account. It could take a few days to clear depending on your bank's process. You might want to hold off on handing over the keys until you’ve made sure the cheque is valid or until you have the money.
If you feel comfortable accepting cash, it can be a great way to receive instant payment. You won't have to worry about any delays and it’s a reliable and fast way to get paid. This is why people often say that 'cash is king'.
You should try and meet the potential buyer at a bank so you can instantly deposit the cash – it’s not the best idea to be walking around with large wads of money!
Now that you’ve got your money from the car sale you’re in a very good place, but that’s not necessarily the end of your car selling journey. What if you still owe money on the car? Use our helpful tips for handling that situation too.
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