Selling my car

[Eels]

I posted this in Motoring but perhaps you people are better equipped to answer me ...?

Never sold a car before, but I could do with lower monthly finance payments and I have alternative transport so I am going to sell it and use the money to make a big interim payment on the loan.

If a buyer writes me a cheque, I assume I cannot give them the keys until it shows up in my account?  What if a seller did this then refused to hand over the car?  I won't be doing this, don't worry, but what's to stop it happening?  And another concern is that sometimes a cheque will show in my account but it won't let me take the money out - does this mean it has still to clear?

[Loosehead]

Rule 1, do not take a cheque

Rule 2, if you accept a bankers draft, phone the issuing bank and confirm it's genuine, ditto Building Society cheque.

Generally a buyer will want the car straight away so you would not usually get into the waiting for a cheque to clear game. But you are quite rught there is nothing stopping a seller taking the money and then "forgetting" the buyer that''s why a buyer will pay in such a way that they can take the car immediately.

A cheque will show on your account but will take at least 3 working days before you can draw on it, in some cases it has been known to take 10 working days.

[Eels]

Thanks Loosehead.

The selling plans will be put on hold for now as I have been kindly informed by Black Horse that what I thought was (and is titled as, and I was told at the time was) a Personal Loan is actually on the Hire Purchase register, so I am going to have to get out another loan from my bank to pay off Black Horse before I can sell the bloody thing.

They're the most unhelpful, inflexible, underhand company I have ever dealt with, I will NOT be recommending Black Horse to anyone, and would caution anyone entering into a finance agreement with them not to believe the adviser who tells you that it will not be classed as a Hire Purchase agreement!

 

[Oneeyedvic]

Contact Blackhorse and ask them why they have put it on the hire purchase register and ask them to take it off immeadiately. If they say no, then say that you want that in writing and you will be informing trading standards as well as experian. Tell them that if they can use the hp register then you plan to return the car using the halves rule.

If they still say no, please post back and I will give you some further details to give them.

[qapmoc]

Hi all, I strongly suggest you read my answer to this post in motoring but anyway everybody should read this about cheques and credit in your account http://news.bbc.co.uk/1/hi/programmes/moneybox/3727162.s tm

[stevie21]

This post is for emphasis rather than to present new information.

Rule 1 : do not accept a cheque.
Rule 2 : do not accept a cheque...
Rule 100 : do not accept a cheque.

The buyer will be able to pay in cash OR can send the money into your account electronically. A "BACS" payment (e.g. standing order) reaches you about 3-4 working days after it's sent.
A "CHAPS" payment can be sent and received the same day, costs about �20 to send and is received during the working day rather than first thing in the morning like BACS.

I'd ask for cash, both go to the bank to pay it in (to make sure that the notes aren't fake) and then had over the keys. Tell the buyer to make sure he notifies the bank a while in advance so that they have the cash ready. You don't want him to go to the bank and for them to refuse to give him the money as he hasn't booked it in advance.

(do not accept a cheque!)

[Eels]

Oneeyedvic, thanks for the advice.  A stiff letter of complaint about being mis-sold an agreement is winging its way to Black Horse HQ as we speak, and I had thought of ccing it to the FSA.  I know what the response will be though - as the loan was arranged through an agent of Black Horse, they will merely blame the dealership and probably won't take me on at all.

My bank have been really helpful (unsuriprising, as they stand to profit from Black Horse's misdemeanours too ..!) and are sending me info on a loan which would get me in the black within 18 months as long as I sell the car.  It's 15.4% though, I'm thinking it's time to shop around.

Would you suggest doing nothing until I get a response from Black Horse?  I just want to get this sorted out and over with, it's so stressful!

[Eels]

stevie21, thanks for the helpful suggestion.  Cash would be fine, but most sellers would, I imagine, be extremely reluctant to pay cash for something like a car, particularly as the buyer is unlikely to be someone I know personally. 

[Oneeyedvic]

eels - What Black Horse are doing is (I am fairly sure but will confirm) illegal. They are registering the vehicle on Experian's HPI register even though it is not an HPI agreement. This is securing their debt (on the car) but not giving you any of the advantages of the HP act.

I am fairly confident that if you say to them the information I gave you above, they will take the car off HPI. If they do not, then you will be able to take advantage of the fact that they won't and hand the car back to them once you have made 1/2 the payments. They would never be able to take you to court as they would lose the case.

Essentially they are trying it on, and if pressed will back down. Give me a shout if you need any help - you can email me direct at my username at gmail.com.

Good luck

[stevie21]

In paying cash for a car, most people that I've encountered would be happy to do this up to about �5K or so.
If you're selling the car for �15 or 20K then obviously cash is out of the question and I'd then opt for CHAPS.

Personally, I probably wouldn't even want a bankers draft unless I was there in the guy's branch with him when it was issued.
If you're *really* paranoid, you could find out which bank & branch he is with, open up a simple savings account there and that should enable him to transfer it with immediate effect. Or for you to be able to pay in the draft as cash.

When dealing with thousands of pounds, I'd make an extra effort to find a foolproof method of payment. Cash can be counterfeit, bankers drafts can be forged, electronic transfers take time but can't be clawed back once they credit your account.

Do not, under any circumstances, accept a personal cheque issued from his chequebook. Even if he's a priest, with an honest face, no personal cheques!