What method of payment is more secure when you sell a car?
There's a certain allure to a large pile of crisp banknotes. It makes us feel rich, and there's something satisfying about seeing a significant amount of money in the paper, so to speak. But when it comes to selling your car, it's not really the best means of payment.
Banking regulations
South African financial regulations require banks to report large cash deposits, wherein the details of the depositor and source of the cash need to be detailed. This entails a lot of paperwork, and as a result, many banks are not at all keen to handle large cash transactions. Additionally, the only way you can be sure that you haven't been paid with counterfeit banknotes is to examine each one under a UV light. Criminals are everywhere and never forget that.
Conversely, a bank guaranteed cheque may be offered. In the old days, this used to be a fairly fool-proof means of payment, but since banking fraud has seen a dramatic rise over the last decades, cheques are as a rule frowned upon. By all means, accept cheque payment, but do not release the car to the buyer until the cheque has cleared at your bank and the full amount reflects in your account.
EFT is the best way
For this reason, an electronic fund transfer (EFT) is much preferred. Unfortunately, EFTs pose a risk for the seller, as some bank transfers force a day's waiting period. If the seller is unable to perform an immediate transfer (some banks still don't give this extra-cost option), again keep the car in your possession until the transfer has cleared and the full amount reflects in your account.
There are only a limited number of ways to accept payment when you sell a car, but cash is the least-preferred avenue. Cheques aren't ideal either, so the best way is to handle the transaction electronically. Fortunately, almost all smartphones can handle banking apps, so it's become a lot easier thanks to technology. Imagine that: getting paid without going to the bank, right there next to your car... and it's all thanks to the internet.
Do you want to sell your car?
We now make it easier than ever to sell your car, with the introduction of our new Instant Offer service. After following this simple 3-step process, you will get a market-driven valuation for your car within minutes, and a solid cash offering within hours – safely, conveniently, and with total peace of mind.
