6 Ways to Accept Payment: Selling A Car Privately (Australia)

Selling a car privately in Australia can be a bit of a journey, especially if it’s your first time. The key to a successful transaction lies in choosing a safe and convenient payment method. With the right knowledge, you can avoid potential scams and payment issues to ensure a smooth sale. This guide will walk you through the best payment options if you’re looking to sell your car privately in Australia.

1. Cash Payments

Cash is often considered the easiest and most straightforward payment method when selling a car privately.

Pros:

• Immediate payment and no banking delays.

Cons:

• Despite advancements in anti-counterfeiting technology, there is always a risk of receiving fake currency. Make sure to inspect the notes first with a portable counterfeit note detector.
• Carrying or accepting large amounts of cash can make you a target for theft. Make sure that you meet the buyer in a public place and if possible bring a friend or family member with you.

To reduce these risks, consider meeting the buyer at a bank. This allows you to deposit the cash immediately after the transaction, ensuring its authenticity and minimising the risk of theft. Always write a receipt for the transaction, detailing the car’s make, model, registration, and the agreed price, for your records.

2. Bank Transfers

Online bank transfers have become a commonly accepted method of paying for cars during private sales. With this method, the buyer transfers the

Cons:

• Transfers between different banks may take 1-2 business days to process. Because of this, the payment is open to fraudulent payment disputes, where the buyer tried to get the payment cancelled after driving off with your car.

Some banks may hold large transactions for security reasons, especially if it’s the buyer’s first transfer to your account. Always confirm the funds have cleared before completing the sale.

3. PayID/Osko (Our Top Pick)

PayID allows you to receive payments instantly using your mobile number or email instead of having to enter a length bsb or account number . Supported by the Osko system, these transfers are usually processed within seconds, making them ideal for immediate transactions. Due to the instant speed of payment and ease of use, this is our top pick for payment when selling your car.

Pros:

• Instant processing
• 24/7 availability
• Reduced chance of transaction errors and fraud due to the instant nature of the transaction.

Cons

• Requires both party’s banks to support PayID
• Requires the number or email address linked to your bank account

Similarly, make sure that their transfer limit is above the sale price of the car.

4. Bank Cheques (Not recommended)

A bank cheque is a historically popular method, but has fallen out of fashion as digital payment methods have become more convenient and accepted Bank cheques are issued by the buyer’s bank, guaranteeing that the funds are available.

Pros: 

• For those such as the elderly who do not want to use cash, but are unfamiliar with online banking methods

Cons:

• Clearance Time: Bank cheques may take a few days to a week to clear, so you should wait until the funds are confirmed in your account before finalizesing the sale.
• Very easy to forge and often involved in scams, so it’s best to avoid this payment method all together

If you choose to use this method, we recommend conducting the transaction at the buyer’s bank. This ensures the cheque is legitimate and provides an opportunity to clarify any details with the bank staff.

5. Third-Party Payment Platforms

Platforms like PayPal, Beemit, Cashapp and others offer a convenient way to transfer funds, but they come with certain risks, especially in private car sales

Pros: 

• Instant processing
• 24/7 availability
• Reduced chance of transaction errors and fraud due to the instant nature of the transaction.

Cons:

• PayPal may charge transfer fees, which can be a significant cost for large transactions.
• Vehicles are not covered under PayPal’s buyer or seller protection policies, leaving both parties vulnerable to disputes.

Due to these limitations, it’s may be safer to use traditional methods like cash or bank transfers when selling a car privately.

6. Cryptocurrency (Not recommended)

Cryptocurrency payments are becoming more common in private transactions, including car sales. These digital assets offer a decentralized way to pay for goods without involving traditional banks. Payments are made directly from buyer to seller using the cryptocurrency of choice,

Pros:

• Fast transactions
• No need for banks
• Potential for lower fees.

Cons:

• High volatility
• No consumer protection
• Requires extensive technical knowledge and setup to carry out

Avoid Being Scammed!

Regardless of the payment method you choose, always take steps to protect yourself from car sales scams:

• Written Agreement: Draft a simple contract that includes the vehicle’s details, the agreed price, and signatures from both parties. This provides legal proof of the transaction that can be used as evidence in the event of a dispute.
• Meet in Safe Locations: Always meet in well-lit, public places or at a bank to ensure your safety during the transaction.
• Don’t Rush: Take your time to verify the payment and ensure all documents are in order before handing over the car. Scammers  will often rush you to sell your car so that you don’t realise that you are being scammed.

By following these guidelines, you can confidently sell your car privately, knowing that you’ve taken the necessary steps to protect yourself and the buyer.

If you want to avoid the hassle of private sales all together and sell you car instantly give us a all or fill in our online form and give you a quote!