After a quarter of a century owning cars, I plan to actually sell a vehicle for the first time. I plan to sell via an online car auction such as Bring a Trailer but all financial transactions after the sale are done privately between the buyer and seller. 2 questions:
1.) As a seller, what is the best and safest way to receive money from the buyer?
2.) Once the money is in my account, can I assume I am good and then hand over the car?
After selling my vehicle on Bring a Trailer and receiving the money, I can definitely say the best method is wire transfer. As a seller, it was perfectly safe since the transfer is only one way. You just have to make sure it clears before handing over anything to the buyer.
what is the best and safest way to receive money
Electronic money trasfer through a reputable bank, or certified cheque. For smaller amounts Interac e-transfer is quite convenient.
Once the money is in my account, can I assume I am good
One would hope so! It should mean the bank has accepted the funds as "good" and then issued them to you. Just double check with your bank to make sure there aren't any conditions on the transaction (like sale pending the condition of car matches the contract, deficiencies, etc.)
Cash.
Unfortunately in my case that is not an option since they could be across the country.
Have you considered using an escrow service? It's used frequently in buying and selling houses so you might want to consider it if you know of a trusted source.
would that be more in the interest of the buyer?
It's in the interest of both; the seller knows the money is actually there and that he will get his money without having to worry about a bounced check etc. And the buyer knows they will get what they are paying for before money is given to the seller. This is my experience with using such service when I was selling my house years ago.
It sounds like in this case the seller is depositing the money before handing over the keys so maybe it's unnecessary.
Wouldn’t a wire transfer be OK? I think for Bring a Trailer they recommend wire transfer from buyer to seller. Of course, all the details are to be worked out between buyer and seller (BaT does not get involved there).
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In my case, as the seller, if I accept the wire transfer from the buyer is there a way I could still be screwed?
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I do intend to make sure the money is in my account before I ship the car to the seller.
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@MMJ I am new to the online car auction scene but from what I am reading so far a wire transfer seems to be the top choice for payment.
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I imagine the buyer would be more concerned about getting the car after wire transferring a large sum of money over.
@mmj I think you meant the buyer is depositing the money before keys being handed over. Yes but for me personally if it was a large sum I would want to take every step to be hundred percent sure the money is there before handing over the keys.
See normally with wire transfer you should be okay but you hear so many crazy things happening that even that I might end up not being hundred percent confident about. But if you feel comfortable with it then yeah you most likely should be okay.
what? The buyer sends money and receives a car. The seller receives money. Why would the buyer deposit anything?
What kind of crazy things did you hear?
The point is the seller would want to verify with their bank that the money has been received and cleared and available for withdrawal and it's at that point that you can say I've got my money. Also have your banker check everything regarding the sender's account as far as it being legit etc. Yes if the seller accepts the wire transfer and their bank fully clears it (funds are there to withdraw) then they're good to go.
I didn't say the buyer won't deposit anything; what I am saying is don't consider the wire transfer completed and fully cleared until you can actually withdraw the amount from your account. I know people who work at banks and this is what I have always been told to do when it comes to wire transfer.
OK so you just repeated exactly what I already explained.
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Your statement "I think you meant the buyer is depositing the money" was very confusing.
You initially said "It sounds like in this case the seller is depositing the money before handing over the keys so maybe it's unnecessary." Seller isn't the one depositing the money; the buyer is depositing money and seller is giving them the keys. This is why I said "I think you meant the buyer is depositing the money."
And okay I just gave my opinion and thoughts based on what I had been told by someone working at a bank. And I said even if it shows the money is in their account let's say when they check their account online there can be a delay between that and when they can actually physically get the money. So what I said was to wait until they can actually get the money/withdraw it.
The seller (Daywalker) IS depositing the buyer's money. Why would the buyer deposit any money? He is getting a car. I have no idea what you're talking about.
If money hasn't cleared, banks usually put a hold on it. But I don't think that's possible with wire transfers. If the money isn't good then the process cannot even begin because the sending bank has to certify it.
I guess when I get the money wired from the buyer’s bank to mine, I will contact my bank and make sure everything is good and I can withdraw it. I will let them know this is the first time I am having someone (that is not my employer or the US Treasury) perform a wire transfer to my bank.
solid plan
Wouldn’t a wire transfer be OK?
Yeah, I think that this is the best option for you. safe, quick, and easy.
It's also twice as expensive in fees (my bank) as a draft/certified cheque. But that's the buyer's problem.
What car you planning on selling?
2004 Chevrolet Corvette. Apparently, they bring decent money on Bring a Trailer.
Nice.