Congratulations on your accepted offer! All that’s left to do is transfer the money from one party to another. But what’s the best way to send or receive money for the used vehicle?

Bank transfer

A direct transfer between two bank accounts is a way to exchange money without using cash. This can be a safe method because it’s traceable and provides a high level of security against fraud. A bank transfer may take from an hour to a few days to complete, depending on the amount of money being sent. There may be fees associated with a bank transfer.

Cashier’s cheque

A cashier’s cheque is guaranteed by the issuing financial institution. The buyer would pay the issuing financial institution the amount on the cheque and any additional fees. This method of payment is generally regarded as secure and is widely accepted at financial institutions. There is an additional benefit of having no waiting period for the issued funds to appear. When cashing a cashier’s cheque, be sure to validate the cheque at a financial institution with the other party before completing the transaction. As cashier’s cheques can be counterfeited, cashing in the cheque when both parties are present protects both the buyer and seller.

Certified cheque

A certified cheque is very similar to the casher’s cheque but does not require the buyer to pay a financial institution upfront for the cheque. The financial institution will certify the check after setting aside the funds in the buyer’s account. A certified cheque is typically seen as a secure way to transfer funds and comes with no waiting period or fees. When cashing a certified cheque, be sure to validate the cheque at a financial institution with the other party before completing the transaction. As certified cheques can be counterfeited, cashing in the cheque when both parties are present protects both the buyer and seller.

Bank draft

A bank draft is generally accepted as one of the most secure ways to transfer money. When the buyer purchases a bank draft, the financial institution will set aside the money from the buyer’s account and put it on hold until the bank draft is cashed in. The buyer should be aware that a bank draft incurs a fee.

Cash

Cash is still preferred by many using online marketplace users, though it does come with its risks. Depending on how much cash is being transacted, we don’t recommend walking around with thousands of dollars of cash in your pocket. Also, sellers should get cash verified by a bank to ensure proper payment.

Online payment platforms

Using online payment platforms such as PayPal or E-transfer can be an easy and secure way to exchange money. By utilizing one of these services, both parties can expect a quick transfer of funds in a convenient and secure manner. There are a couple of drawbacks of using online payment platforms though, with fees and transaction limits being at the forefront.

With any sale of a vehicle, drafting a bill of sale can prevent the buyer and seller from having any misunderstandings. It can allow both parties to feel confident about the sale of the used vehicle and provide peace of mind within the transaction.

After you exchange money, there’s many steps buyers need to do before they can drive away with the vehicle, such as transferring the vehicle title and insuring their newly purchased vehicle. To learn more about these steps, you can refer to this article: How to complete a used vehicle sale. 

Visit a BCAA Service Location for title transfers.

^{The foregoing information is for general informational purposes only. Readers are cautioned against making any decisions based on this information alone and any reliance you place on such information is strictly at your own risk.}