If you're planning to sell your car, these are five safe ways to accept payment when selling your car:
- Cash payments
- Cashier's check
- Wires transfer
- Venmo or PayPal
- Escrow service
People sell their vehicles because of a lot of reasons. For example, some might be looking to upgrade their current vehicle; others might be interested in selling their cars to get extra cash to take care of important payments, and others might be just interested in purchasing a more modern car.
Regardless of why you're selling your vehicle, it's important as you're trying to sell your car that you select the safest payment method that does not involve any hassle and no complications.
There are many payment methods available, some of which are very new while others have been known since a long time ago. Therefore, it's important for you as a car seller to understand that only some payment methods are safe, and you should wait to go with the one you come across.
This article walks you through five safe ways to accept payment when selling your car. We also walk you through some details about the main characteristics and pros and cons of each to help you make an informed decision.
Five safe ways to accept payment when selling your car
With the evolution in technology, you'll see more and more increased number of payment methods available out there. Some are considered safe, while others are new and might involve many risks.
Unfortunately, every car seller knows that these payment methods could involve risks that might even cause them to lose their vehicles and never get paid for them.
That's why it's important for us drivers to understand the safe ways to accept payment when selling our cars before selling your vehicle. The following list provides you with five different methods that you should consider, and it also works to a through some of the details about each one to help you make an informed decision about which one should work for you.
1. Cash payments
According to automotive experts, cash payments are considered the safest payment option regardless of your vehicle type or condition. In addition, when getting paid in cash, you don't have to worry about the hassle associated with checks bouncing back your bank account or lengthy phone call payments.
The one thing to keep in mind is that some cash payments might involve some risks. In other words, if you're planning to get paid in cash, you must meet with the potential buyer in a public area where there are some people around you. This is because many scammers might take advantage of you, especially if they're paying you in cash, where they could put your life at risk.
Some experts recommend meeting in a public bank parking lot or a Walmart parking lot where video cameras could help record the situation, and you might need to go back to it if something happens.
Not everybody is willing to pay in cash, so you have to be more flexible about considering other options listed in the following points.
2. Cashier's check
If you cannot get paid in cash, some experts recommend getting paid in a cashier's check or an actual check. The nice thing about the cashier's check is that you can double-check and confirm that it goes through, and you will have better security about the fact that the check will not bounce back into your bank account.
Experts recommend you verify the check and confirm that it goes through before you finalize the deal and before you say goodbye to your vehicle and hand the keys to the potential buyer.
That's why if you're planning to get paid in checks, you must meet with the buyer at your bank, and where if I were the bank, this check does not have any problem, and it's safe to use to get paid for your vehicle.
3. Wires transfer
Over the last couple of years, people started using wire transfers to get paid for their vehicles. These are great options for those planning to sell their cars to family members, friends, or at least somebody they know and trust.
If you're planning to use some of these options like Zelle, you'll notice that your bank account or app will warn you about the wire transfers, especially since there's no way for you to get this transferred amount of money once it's done.
That's why you'll need to consider the previous options before getting to this point, and that's why you must confirm that you received the oil transfer before finalizing the deal and handing the keys to the potential buyer.
4. Venmo or PayPal
In addition to the wire transfers, some experts recommend using commonly known platforms like Venmo or PayPal. These are known for their good reputation, and there were a few reported issues about people getting paid through these platforms.
However, some of these platforms might restrict the amount of money that you could receive. For example, if this is a new PayPal account for you, in some instances, you might only be able to receive up to $1000. If your vehicle is more valuable than this threshold, you should choose a different platform that allows you to receive the full payment without any complications.
So, it would be best if you tried the previously listed options for getting paid for your vehicle before choosing between Venmo and PayPal. However, if that's your only option, and you got a very good deal and are comfortable with getting paid this way, you should go for it.
5. Escrow service
Finally, escrow service is another great way to get paid for your vehicle, and it's been used for getting paid for selling cars many times before. The nice thing about the escrow service is that it keeps the fund held at the app itself until the transaction is completed.
Service can be very handy, especially for those who want to inspect the vehicle before purchasing it. It allows the buyer to test drive the car and inspect it before deciding to continue with the final purchase.
Despite the great features of the escrow service, many automotive experts still recommend avoiding it as long as you have options for getting paid in cash or through a cashier's check. In addition, there have been some reported instances of people getting scammed because of the escrow service.
Safe ways to accept payment when selling your car: FAQs
In addition to understanding the safe ways to accept payment when selling your car, there are some questions that we received from several of our readers that we would like to share with you, including:
1. What is the safest way to accept payment when selling my car?
If you want to choose only one way to sell your vehicle, automotive experts recommend going with cash payments. However, cashier checks might be another second option if that's not valid.
2. Is accepting payment through Venmo or PayPal when selling my car safe?
As we indicated, many people use Venmo and PayPal to get paid for their vehicles. However, these apps are not considered the safest when getting paid for a luxury or a valuable vehicle, especially if the car's value is very high and your PayPal or Venmo accounts are fresh.
3. Can I accept cash when selling my car?
Of course. Cash payments are the recommended payment method for getting paid for your vehicle. However, can we keep in mind the meeting location of where you get paid so you don't get involved in some instances that might complicate the canceling with it?
4. How can I verify that a cashier's check is legitimate?
If you could not get paid in cash, we indicated that a cashier's check could be another great option. Many people must learn to verify whether the cashier's check is legitimate. You can call the bank and check with them whether this check is valid or not.
You must do this check before you even finalize the deal because once the buyer walks away, you won't know how to get him back, especially if you're selling the vehicle as is and if you sign all the paperwork indicating that you received your payment.
The payment step is one of the most critical steps you have to focus on when selling your vehicle because it might involve a lot of scams here; there are tons of available platforms and services for getting paid for vehicles, but not all of them are legitimate.
This article highlighted the five most common safe ways to accept payment when selling your car. These ways include cash, cashier's check, PayPal and Venmo, escrow service, and wire transfers.
If you're interested in selling your car and want to get paid in cash so you don't deal with any hassle related to the payment method, you can always call Cash Cars Buyer at 773-791-4363!
At Cash Cars Buyer, we provide you with the top dollar paid-for vehicles around your area, remove your vehicle within one to three days only, and a free towing service!