Selling your car can be done in plenty of ways — and naturally, we think the Motorway way is the best. But you can only truly say you’ve sold your car when you can clearly see the funds in your account. Our dealers pay by secure bank transfer, but your non-Motorway buyer may want to pay you using a different method. Not all are advised, though!
Cash
Maybe the idea of getting a thick wad of cash appeals to you, but logically, this isn’t the best idea — for one, you need to count it. And if it doesn’t add up, you could be in for a very tense situation. For another, there’s no proof of payment. Add to that general human error, and you might just misplace your cash in no time. It’s also illegal for companies (whether limited or not) to buy your car for cash in the UK, they must offer a bank transfer option of some kind. For private buyers, there are no rules for purchasing vehicles in cash.
Cheque
Cheques are somewhat out-dated as a payment method, but when it comes to handing over big sums of money, you may find your car buyer prefers it. And that is likely because a cheque very much swings in the buyer’s favour. They don’t have to get your bank details, they don’t have to prove you’ll even get the cash, and that means you are left in a vulnerable position. As responsible as your buyer may seem, you have no guarantee their cheque won’t bounce, and no paper trail to prove the cheque was exchanged, either. You’ll also have to wait a few days for the cheque to clear — provided you get it to the bank ASAP and don’t lose it in the meantime.
Banker’s drafts offer a bit more security as they are guaranteed by a bank, but you still have to wait for them to clear. As with cheques, they can also be forged.
Bank transfer
This remains the most secure option, allowing the buyer to transfer you money right to your account. In many cases, this should appear in your account on the same day but it can take longer. This shouldn’t be something your buyer is worried about (if they are, it might be a red flag!).
If you have access to a card reader or a payment app (maybe you own your own small business) then this is also a handy way to get quick, secure payment.
Most companies will buy your car using a bank transfer of some kind, payment will usually arrive the same day the payment is made, or within 1-3 days.
Should I accept a bank transfer when selling my car?
Ideally, yes. This is the more secure method compared to cash or cheque. In many cases, the funds appear relatively fast so you could hypothetically request the transfer and not release the keys until you see the money in your account.
What is the process of selling your car that is on a bank loan?
Cars that have been purchased on finance cannot be sold unless this finance has been settled. Dealers may be happy to help you pay off your remaining balance based on the sale of your car, so make sure you have contacted your finance company to receive a settlement letter. It is illegal to sell a car on finance without letting the buyer know there is money owed on it.
When selling a car what is the best form of payment?
Bank transfer is one of the most secure. It eliminates the risk of being undercut due to poorly counted notes or losing the cash or a cheque. If you do decide on cash, consider doing the exchange at a bank, where you can have a bank clerk confirm the total. You should be extra vigilant when walking around with large sums of cash.
Can I sell my car before repayment of the car loan is completed?
Yes and no. You cannot sell a car on finance until you have paid for it. A vehicle on finance does not become your possession until you have completed payment. If you go to a dealer, they may be happy to settle this for you based on the sale of your car. It is illegal to sell your car without telling the seller it is on finance.
Is it time to sell your car?
Want to learn more about owning, maintaining, and selling your car? Check out more of our guides here, covering everything from finding buyers, to negotiating a good price, and completing payment safely.
Only accept payment through established and legitimate payment methods, such as cash or bank transfer. Avoid buyers who claim they want to pay more than the asking price by sending extra money and getting you to refund the difference. Don't give the buyer your keys until the payment is safely in your account.
In addition, to be safe, it's a good idea to request a cashier's check for the money that's drawn from a local branch rather than a personal check. The vehicle buyer may have to pay a fee, but you'll avoid a likely bigger one for taking a bad check that bounces.
The most efficient way to pay for your vehicle is to bring a cashier's check, which is more secure than a personal check, and guarantees that the funds are actually available.
This remains the most secure option, allowing the buyer to transfer you money right to your account. In many cases, this should appear in your account on the same day but it can take longer. This shouldn't be something your buyer is worried about (if they are, it might be a red flag!).
One of the main benefits of accepting bank transfers is that it's a quick and convenient way to receive payment. It's also a safe method, as the money is transferred directly from the buyer's account to the seller's account, reducing the risk of counterfeit money or theft.
A wire transfer cannot be counterfeit or reversed. When selling your car, if you receive a wire transfer, then you can be confident the funds are in your account and are legitimate. You'll need to share your bank account and routing number with your buyer in order for them to pay you with a wire transfer.
rule of thumb for how much your car payments should be. You should aim to keep your car payments around. 10% of your gross monthly income or below. So if you make 60 K a year, you should spend no more than $500 on your car payments.
Isn't a cashier's check safer than a personal check? No, a cashier's check really isn't any safer than a personal check as payment when selling your car. They can still be faked and they can still bounce. The feel more official, which makes people think nothing can go wrong with them, but that's simply not true.
If you're buying a used car at a reputable, licensed dealership, you can use just about any way to pay you want, whether by personal check, debit card, credit card, cashier's check, or even cold hard cash. Just make sure you get a bona fide receipt if you pay cash!
Cards are still the most-used payment method, with American Express, Mastercard, Visa as large global card schemes. Even though they're recognized globally, other payment methods like online banking, direct debit, digital wallets, or Buy Now Pay Later (BNPL) are more common elsewhere.
No, it is not safe to accept Zelle payments from strangers because there is always the possibility of the stranger being a scammer. If the stranger is a scammer, then you could end up losing money by accepting a Zelle payment from them.
Is PayPal safer than bank transfers? PayPal is considered a safe payment method and offers advantages over bank transfers. It provides an extra layer of protection, allowing you to make payments without directly exposing your bank account or card details to the merchant.
Should I Accept Cash When Selling My Car? Maybe. Avoid having a lot of cash on for any amount of time out in public, and especially not in a high-crime area. The safest way to accept cash is to have the buyer meet you at your bank, give you the money, and you immediately deposit it.
However, you have to provide the buyer with your bank details, which you may not want to do. Cash is an alternative, but it's worth considering that you arrange for the handover to happen at a bank. Not only can the staff there count out the notes, they can guarantee that they're genuine.
It's the best way to buy a used car if you can, simply because you won't be paying any interest over time – and you'll also take ownership of the vehicle there and then.
Conclusion. PayPal is convenient to use for relatively inexpensive vehicles, but it doesn't guarantee the buyer will get a clear title or the seller will get paid. This is the case whether or not you pay the 2.9% fee for PayPal Protection since vehicles are explicitly excluded in their policy.
Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.
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