joefish1298

I was thinking today about the risks of buying privately, specifically the financial risks.

Lets say I decide to buy a car, and take out a loan from ANZ. I assume they give me a bank cheque made out to the seller.

I take the cheque to the seller, but I can't take the car because he wants to wait for the cheque to clear. I wait a week and now the seller and my car have disappeared.

Obviously I contact the police, and they twiddle their thumbs and whatever but what about ANZ? Will ANZ try and help me seeing as the security for their loan is gone, or will they just throw their hands up in the air, say it's my problem and expect me to keep making payments on the loan while the police investigate?

Do I spend 5 years paying off a loan for a car I never even got if the police can't do anything? What can I do when buying privately to protect against this?

narada

Theoretically speaking, bank cheques dont need be to cleared. Its money coming directly from the bank, not your account, so its you way of guaranteeing that the buyer will be paid.

So if someone doesnt want to give you the car on presentation of a bank cheque, explain that or walk away if they still dont want to give the car to you!

joefish1298

Unfortunately bank cheques can be fraudulent, and there are known gangs buying cars using fake bank cheques and fake drivers licences to verify their ID.

I guess as a buyer though, I have the advantage in that a lot of people wouldn't know this and would happily hand over the car on presentation of a bank cheque.

If I was selling though, I would politely inform the buyer that I would be unable to surrender the car until their cheque had cleared for my own protection.

narada

oh really?? I never thought of anybody giving me a fake bank cheque.. lol

i guess thats covered in theft right? just claim insurance if someone gives you a fake bank cheque (if you have it!)... it just kinda sux that you would have to wait for a bank cheque to clear - its inconvenient for the buyer, and a serious turn off for anyone serious in the market.

yeh, its too hard to live life thinking every man and his grandma is going to rip you off IMO lol...

jbird

If that is the case i.e fraudulent bank cheques, then the only way around this is to go with the person to the bank or pay cash. So you can take the car away that day.

Vuey

or you can do it the asian way and pay cash !!!


i recently sold my car , and we settled on a bank cheque . And most recently bought a car and payment was made with bank cheque and we drove away there and then once we completed all paperwork.

You can ask to see the reciept from the person presenting the bank cheque and there are watermarks to prove authenticity.

But i wouldnt hand over a bank cheque and wait 3 days etc . As its pretty much cash from the bank .

ryanswhites2k

Hopefully vuey can reply to this an he will be able to tell you what he did with his sale. I remember just writing out a letter for the sale of purchase and signed it the I gave the guy all my details from my license

jdm.w

definitely agree and it is the asian way. hahaha.

i would have the buyer come with me to the bank and me to cash it in.

TAAXED

Definitely write up a sale contract with all of your details and theirs, drivers license number, address, vehicle details like vin etc - signed by a witness and all involved parties.

PM me if you want the template I used. When I bought the M3 from SA, since I never looked at the car in person, rather had a friend and member from here look at it, I had the owner scan and send me his drivers license and the registration papers just for authenticity purposes. We actually just paid him by a direct bank transfer and he drove the car on to a truck for us and had it shipped down...

narada

yeh I think there are always going to be fraudulent people in this world, but I would like to think 99% of people are honest!

but yeh, the go to the bank thing is probably the one thing that you can do to guarantee a sale goes through legit.