need info/help today on car sale...

Stevo11

Have my MX5 for sale and just got a call from a guy who wants to collect it tonight... payment by company cheque...
Do you think this acceptable form of payment? I wouldn't take a private cheque but is there any difference with a company cheque?

Thanks
Steve

green-blood

no

he cant have it until the cheque clears.

Alfasudcrazy

No way hozey would I agree to that. I am not sure what the amount is involved but never be tempted to part with your car for cheques - especially personal or even company cheques.

I would only accept cash or a bank draft - but would not release the car until the bank draft had cleared. There are scams like this going on all the time.

Their method is to force the owner to make a quick decision without checking things out properly.

He might be genuine - but most genuine buyers accept the need for the seller to be careful and are prepared to wait for cheques to clear etc.:)

spidersonmars

Hi,
It depends, company cheques are usually fine as a paymnet method for car purchase esp, if he's a car dealer. However i would insist on a bank draft or cash depening on the amount. If your not sure then don't accept the cheque. Its important to remember that it takes 4-5 working days to clear the cheque payment in bank. So like most people accepting a cheque, do not hand over your car keys until the cheque is cleared. A cheque is not a payment, it mearly a receipt giving permission to the payees bank for money to withdrawn from their account to another wether they have the money or not in the account.

Always, be wary of someone who wants to collect on the same day a handing over a cheque..this to me smells fishy.

PaulK_CCI

Absolutely, same here! DO NOT be tempted to accept and just give the car and papers there and then.

He can pay by cheque, but tell him he can only come and pick up the car when it's cleared and in your account. You could even try to statisfy him by offering to drop the car off to him when it's cleared. If he visits you, he knows where you live and that should be enough reassurance, you;re not going to be doing a disappearing act...

Apart from forgeries, company cheques or any other drafts can still be Cancelled in the time it takes for them to clear, so they do not offer any kind of security.
If he wants to collect and drive away immediately, I would advise Cash only!

milltown

I don't think a draft can be cancelled. They can be forged though. To be honest I'm even nervous accepting cash. I sold a motorbike a few years ago for cash but I couldn't relax until the bank had accepted each note and credited it to my account.

Also worth noting that some banks will credit the amount of a cheque lodged to your account straight away but will just as quickly take it back if the issuing bank rejects it.

You cannot be too careful! Take his picture, photocopy his passport. Assume everybody is out to rip you off. At worst you'll be proved right, at best you'll have a bit more faith in humanity.

Stevo11

Thanks for the feedback. He rang me back to tell me he has cash in hand now.
Panic over ;-)
Steve