Selling a used car! Ensure payments are safe and secure.
While you have picked up the right skills to market your car, find the potential buyers and the get a great price, you need to handle payments smoothly, avoiding potential risks.
Areas where you should be careful…part payments, fake cheque or demand draft and most frequent fake currency notes.
How to avoid the above payment issues while selling your car?
Don’t accept part payments & verbal assurances. This is a delicate issue while dealing with friends, relatives and colleagues. Verbal guarantee is another common issue, people tend to boast about their credibility and honesty to avoid full payments. Don’t fall for it. Everything should be in writing (Black and white).
Clearly spell your payment terms that too upfront to the buyer to avoid any confusion later. A good deal can sometimes go wrong due to lack of clarity in payment terms.
In case, you have a loan running on the vehicle, the loan needs to be closed first and a No-Objection-Certificate (NOC) and Form-35 (RTO document required to remove hypothecation on the registration certificate) need to be obtained from the bank / finance company. Prepare in advance, get your loan foreclosure statement from the bank to know the balance loan amount, the foreclosure charges and the daily component. The buyer can make the loan closure payment to the finance company and the balance to you. Since it takes 15-20 days to obtain the NOC & Form-35, buyers tend to hold an amount of Rs.10,000/- to Rs. 25,000/- based on the value of the car towards these documents, which is fair.
Fake cheque or demand draft is another area where you have to be cautious. Get the cheque / DD verified by your bank and then you can proceed with the transaction. Similarly, fake currency notes can be verified by the bank before you accept the money.
With these steps you can minimize the chances of payment frauds and sell your car with complete peace of mind.