Selling Car - U.K to Slovakia

[Geoff Deakin]

Hi All,

I am in the midst of negotiations to sell my car to Slovakia.

What is the best and most secure way of transferring funds?

The buyer is coming to collect the car, but I want to ensure I have the money before the cars leaves me.

Has anybody got any ideas?

Looking forward to your help.

Cheers,

Geoff.

 

[jyrki sulka]

Don`t know if this helps, but here`s my experiences of buying car from another country. No problems so far.
I bought from both, private owners and companys (from germany and sweden), 6-7 times now.

1) Check the car / test drive, then money, paperwork after that. After all that, giving the car to buyer.

2) Check/testdrive, then money transfer in online. If needed, buyer waits untill money shows up to sellers bank account (take care of that; check it from Your own computer etc.). Can take even 24 hours...
Then paperwork.

Note! Absolutely no checks or similar. Don`t take anything else except real money or right, full reading in your bank account.
If buyer can`t do it, it`s really good reason to think he/she is not honest buyer.

 

[just ernst]

i think it´s not about the country,...but if i sell or buy a car,...allways money on delivery, easy to go to a bank and check if money is okay, and both are happy, customer and seller
ernst

 

[Geoff Deakin]

Thanks for your advice.

I have just been e-mailed a draft Letter of Credit, but my Barclays Bank don't seem to trust Letters of Credit.

I have spoken to the buyer in Slovakia, and it all seems to be above board.

It's just that I can't risk anything going wrong!

 

[Rick Muck- Mark IV]

The puchaser can set up an account at your bank, wire the funds to that account and then withdraw/transfer to your account when he arrives and approves the purchase. That way the funds will have been verified prior to his arrival. Should he not complete the purchase he can transfer the funds back to his home account.

Most any other way has the prospects of fraud or other issues. If he is not willing to spend a a hundred or so on wires he is not likely a real buyer. If this is a sticking point offer to discount the costs.......way less expensive than finding a bogus check or letter of credit!

 

[Ian Anderson]

Thanks for your advice.

I have just been e-mailed a draft Letter of Credit, but my Barclays Bank don't seem to trust Letters of Credit.

I have spoken to the buyer in Slovakia, and it all seems to be above board.

It's just that I can't risk anything going wrong!

A Letter of credit is probably the most secure way of doing a transaction like this.
that said it must be an Irrevocable, Confirmed Letter of credit.
In other words both parties can get the contract in place and confirmed prior to the deal out of it and the bank confirms they will stand surity if the other party pulls out

The down side is tat they are hellishly expensive - expect anything up to 12% of the transaction total as your costs.

And Barclays loves letters of cedit as they will make money out of it but it will end up being at a central office based in Birmingham and not your locak branch.

So to summarise
the Letter of credit would
1) make out exactly what is for sale and where the sale will take place
2) explain exactly what condition the item for sale is in and allow for inspection to take place
3) On collection of the car the seller would be asked to sign to confirmhe has examined the car and it is as described and that he accepts said car
4) you would then send the required documents to your bank along with his signature saying he has agreed the car is as described
4) The bank will transfer the funds to your account within the specified time period (But this is guaranteed as the bank has it irrevocable and confirmed by the other bank)

Lots of legwork but really secure

Ian

 

[Brett James-McCall]

How about using an escrow service?

 

[Michel]

Hello

>>IT's normal your bank is not happy with letter of credit due to the fact these frorms are mainly reserved to commercial purpose in beetween company who already show guaranties to both banks the one to the seller and the one to the buyer and in any case not for selling a second hand car !!

To be safe your transaction must be simple ;
This type of selling and transaction cannot be done in one day ; this is to be explained clearly to your buyer absolutly clearly in a letter ( not a mail because mails are not considered in European court in case of litigation)
He must send a reply where he agree some important points :

1/Before to leave he must do an inquiry to know if his bank is represented in UK and specially in your zone
If not he must prepare with his bank the european form tranfer fully filled with all your and his datas and the exact purpose of this buying ( due to the fact as it is an EC and probably up to 12 000 euros he need his bank tohave a pre autorisation from the Slovakian national bank)
This form will rove that he is able to afford the byuying and will be made definitive when visting you he agree in doing the transaction
2/ He come and visit you to check the car and to "understand" what he is buying because on the sale form he have to rrecognise that he did an serious evaluation of the buyed car and will not intent any further pursuit when caryed back taking off from you all responsability for the future use of the object
3/He have plenty of time and does not want to do the travel twice so he stay near your place and (or) helped by your bank or by his proper one(if you are luky he is on awell known one) Once the tecnical visit is achieved and before to load the car ; transmission of the above form is done to his original bank account and it is necessary to wait minimum 3 days ( usally 4 !! and 2 more if the national autorisation have not be done) to perform the transfer to your bank ( 1 day more is necessary for your bank to achieve the real transfer )
More and less all these type of private transfer takes the week because our loved banks use this time to earn some little profit!!
The definitive bill of sale in beetween 2 privates is done only once you have this transfer fully checked in your account
4/ If he does not want to stay so many days in UK he can go back do the transfer and come back to do with you the bill of sale and carry back the car in this case he is able to ask you before leaving to write and sign aform telling that once the transfer is done the car will remain in the status he checked during his visit ( a lot of various pics are to be done and join to this form)

Hope this helps
Good luck with your sale

And for sure if you test ; YOU drive !!!!!!!
And never be alone during this visit ( wife, dad, or friend near you always)

 

[John S]

Let's face it, this is not only unsure for you as the seller, but also for the buyer. He will also wants to be sure he will get the car and no one will run off with his money and close the bank account.
Within the EU transferring money will usually be really quick, but I found out the UK is different and it will take up to three days.

So I would suggest he brings the money cash, inspect your car and you can both go to you local bank to have the money checked. Money still works, even in these modern times.

If he doesn't want to do that he can inspect the car, transfer the money through his internet banking, wait for three days so you can check that the money is there and take the car with him.

John

 

[Cliff Beer]

Cash. Cash. Cash.

British pounds aren't too hard to get in a bundle.

Here in the US we have the option of a bank check (cheque) - essentially, it's a check drawn on the payor's bank wherein the payor (the car buyer) has already delivered funds to the bank. The payee (the car seller) and the payor go to the payee's bank and deposit the check with the payee bank confirming the validity of the check and the availability of the funds set aside with the payor bank. Works pretty well. Not sure if you euros have a similar drill.

Both parties have some risk. The buyer wants to get the car in their possession free and clear of any encumbrances or liens or issues the moment they have arranged payment.

If it's not cash on the barrelhead then it's best to get to know each other a bit, talk, exchange personal information (copy of passport for example) and improve the chances of a successful transaction thereby.

 

[Robin Little]

I would only be happy with cash in this situation, have heard too many horror stories of funds showing that they were in your account then when all the paperwork goes through the funds being removed for various reasons. Both parties going to the bank and depositing money there and then after the bank have checked it.
I have used a bankers drafts in the UK for this type of situation but again only after building up a relationship with the seller and inspecting the car.

 

[jyrki sulka]

Ps.
Following story is true, happened 2 years ago to guy who i know (goodbye Borgward), and have heard few similar stories.

Avoid situations where details are agreed between buyer and you, and then buyer says he`ll send truck-/lorrydriver (or similar) to collect car few days later. With cash of course he`ll say.
(Propably buyer don`t show himself, maybe he make the deal with You in net and-or phone.)
The trick is: transportation is in Your yard, you lifted, or are planning to lift the car on board when it shows up that truck driver have the money only in international bank check -form, instead of cash. You try to call to the buyer but usually he don`t answer.
If that happens in bank hours, of course you go to nearest bank and ask is check ok? Bank officer takes it in and says it`s ok. Money shows in your account, but only for few days max, and then bank informs you transaction is cancelled and money is returned (I don`t remember excatly how they do it).

Why you don`t just stop the deal when you realised you don`t gonna have cash?
It`s very stressfull moment, and you`ll be confused and can make mistakes, easily. Truck driver is very busy and angry, pushing you nerves even more tighter. You can`t deal with him becouse "he is just innocent guy doing he`s work"...

Last trick:
The check is written for bigger sum than Your deal was, typically few thousand euros. When you are in bank, of course you pay the overcoming money to truck driver, in cash. So goodbye your car and goodbye your money...

 

[Geoff Deakin]

Thanks everybody for your advice.

It looks like cash at the moment.

Cheers,

Geoff.

 

[Lucas van Altena]

Geoff,
I did buy a car from England for 1 1/2 year ago.
What i learned from mine bank was, first let the bank of the buyer change the money in the selling currend.
Than transfer the money to the seller.
It will be day's quicker.
Otherwise, the bank of the seller has to change the money and will take his time.
The buyer can ask his bank when the change has occured and transfer the money to the seller.

This was told me by mine bank.

 

[Keith]

Thanks everybody for your advice.

It looks like cash at the moment.

Cheers,

Geoff.

Geoff, remember UK Customs Regulations re: Money Laundering and which ever way the cash is going, (Buyer bringing it over - you bringing it back) ensure that it is drawn from a proper bank bundled with bands, and that all paperwork including correspondence and bank statements are brought along to support the purpose of the money.

Cash savings crudely bundled with elastic bands etc, is one sure way of losing your money.

Cash that appears hookey will be seized by UK customs, in any event, it is mandatory to declare any cash over £10,000 and even under this sum, you will be required to account for it if above £2,000. They also use cash sniffer dogs at UK points of entry. Also be aware that Customs will always inform Inland Revenue as they are "brothers".

Seriously, even cash is a risk these days unless you plan properly.

 

[Geoff Deakin]

Nice one Keith!

In my naivety, I thought one could bring any amount of cash in.

Although, when I went to Le Mans in the 60's there was a limit as to how much you could take out - I seem to remember it was VERY little.

The sale progresses, and I think that the payment will be a SWIFT payment, his bank to my bank.

Thanks everybody for for your advice and interest.

I'll keep you posted.

Cheers,

Geoff.

 

[Geoff Deakin]

Progress!

After a representative of the buyer flew over from Bratislava to view the car, a deposit was received by SWIFT payment with absolutely no problems.

The sale went through on March 27th, and an artic arrived to transport the cat to Slovakia.

The driver of the artic confirmed that the car he was to load was indeed a Gulf GT40 (He had a photo of the car on his phone).

He rang the buyer who made another SWIFT payment, and the funds were in my bank acount within the hour - No problems - No fuss.

Barclays Bank were totally confused - One suggestion from them was to use Paypal, otherwise they couldn't suggest anything!

On checking with the bank on the day, I was told that a SWIFT payment would take 3 to 4 days - They were somewhat surprised when it came through within the hour.

Very sad to see the car go, but it's going to a good home - Due to Slovaskian laws, it now has to be converted to LHD.

I gather it will be the only GT40 replica in Slovakia!

If I haven't thanked everybody for their help over the years, thanks very much - I couldn't have done it without you.