Receiving Payment

Once you've found your buyer and have agreed on a price, there a number of things you should do to protect yourself against theft and fraud. Firstly, ask for a non-refundable deposit, which will ensure that you're not out of pocket if the buyer pulls out and you have to re-advertise. At this point, it's also worth asking the buyer to provide some ID with an address and landline telephone number, along with a passport or driver's license. In this way, if anything does go wrong, you'll be able to contact them easily.

Methods of Payment

Never hand the car keys over to the buyer until you have been paid the full agreed price. However, there are increasing numbers of fraudsters paying for cars with fake checks, forged cash or counterfeit bankers drafts, and so you must ensure that the payment is genuine, otherwise you will find yourself seriously out of pocket.

The following forms of payment have varying levels of risks; it's important to be vigilant, and never hand the over car until the money has cleared in your account or the cash has been verified.

Cash

If you buyer wants to pay cash, ask them to come to the bank with you so that you can pay it in straight away and have the notes checked by a cashier. It's best not to agree to accept cash outside of banking hours.

Personal Checks

Although they are cheap and easy to use, personal checks can be issued without available funds in the buyers account, and can also be easily cancelled. In some cases it can take weeks before you are made aware that payment has been returned.

Cashier's Checks

Although a banker's draft or cashier's check guarantees payment, this only holds true if the check is valid. Criminals frequently forge banker's drafts, and so it is essential that you do not release the vehicle until you are sure the payment is genuine. Ask your bank how long it will take before you can draw funds against the check, and let the buyer know that you cannot hand the keys over until this date. On the day, confirm with your bank that you can draw funds against the check - don't ask if the check has cleared as this can mean something different. Alternatively, you could go to the bank with the buyer when they draw the check themselves - this way you can tell that it is genuine.

Preparing a Receipt

Prepare two copies of a written bill of sale and receipt, including the following details:

• Make and model
• Year of registration
• Registration number
• Mileage
• Agreed sale price and amount paid
• Your name and address
• Buyer's name and address
• Note that the vehicle is 'sold as seen'

Both of you should sign and date each copy. Your state motor vehicle website should offer a detailed bill of sale form.

Paperwork

Check with your state motor vehicle website to find out what the requirements are to transfer the title to the new owner. In general, you will have to sign and date the title before turning it over to the buyer. Notifying your local motor vehicle office of the transaction and ensuring the title is correctly transferred will prevent you from being liable for any accidents.