How Payment Works When You Sell Your Car
One of the most common concerns when selling a vehicle is getting paid safely and quickly. Whether you are selling a car, van, or commercial vehicle, the payment process matters. At Car and Van Buyer, we pay by same-day bank transfer at the point of collection, with no fees, no delays, and no risk to you.
This guide explains exactly how our payment process works, why bank transfer is the safest method for vehicle sales, and how it compares to the risks of handling payment yourself in a private sale.
Why Bank Transfer Is the Safest Payment Method
For vehicle transactions, a direct bank transfer is the gold standard. Here is why it is safer than every alternative:
- Instant verification. You can see the funds arrive in your account in real time. There is no waiting for cheques to clear or relying on someone else’s word that the money has been sent.
- No chargebacks. Unlike card payments or some digital payment platforms, a Faster Payment bank transfer cannot be reversed once it has been received. The money is yours.
- No physical cash risk. Handling thousands of pounds in cash creates safety concerns. Counterfeit notes are a real risk, and carrying large sums puts you in a vulnerable position.
- Full audit trail. Both parties have a clear, dated record of the transaction through their bank statements. This protects you if any dispute arises later.
How Faster Payments Works in the UK
The UK’s Faster Payments system is the backbone of same-day bank transfers. Operated by Pay.UK, it processes millions of transactions daily between UK bank accounts. Most transfers arrive within seconds, though in some cases they can take up to two hours depending on the banks involved.
Nearly all major UK banks and building societies participate in Faster Payments. There is no fee charged to the recipient. The system operates 24 hours a day, seven days a week, including bank holidays, which means payment timing is not restricted to business hours.
When we pay you, the transfer is initiated on site during collection. In the vast majority of cases, you will see the funds in your account before our driver has left your property.
Our Step-by-Step Payment Process
Here is exactly what happens on collection day. For full details of the entire selling process, see our how it works guide.
Step 1: Identity Verification
Before any money changes hands, our driver verifies your identity. You will need to show a valid photo ID (driving licence or passport) and proof of your current address (a recent utility bill or bank statement). This is a legal requirement for vehicle purchases and protects both parties against fraud.
Step 2: Vehicle Inspection
The driver carries out a brief inspection to confirm the vehicle matches the details you provided when you requested your valuation. This typically takes 15 to 20 minutes. As long as the vehicle is as described, the agreed price stands. If there is a discrepancy, you will be told immediately and given the option to proceed at a revised price or decline with no obligation.
Step 3: Paperwork
You sign the relevant section of the V5C logbook to transfer keepership. The driver will also have a purchase invoice for you to sign, confirming the agreed price and the details of the transaction. We handle the DVLA notification on your behalf — you do not need to do anything further. Make sure you have all the documents you will need ready before collection day.
Step 4: Payment
The driver initiates a bank transfer to the account details you have provided. You can verify the payment has arrived on your phone or by checking with your bank. Once confirmed, you hand over the keys and the sale is complete.
The entire collection process, from arrival to payment, usually takes 30 to 45 minutes.
What Happens With Finance Settlements
If your vehicle has outstanding finance, the payment process has an additional step. We settle the finance directly with your lender. The settlement amount is deducted from the agreed price, and you receive any remaining equity by same-day bank transfer.
For example, if your car is valued at six thousand pounds and the finance settlement is four thousand pounds, we pay four thousand to the lender and transfer two thousand to you. The lender payment is processed separately, but your share arrives on the same day.
If the settlement exceeds the vehicle’s value (negative equity), we will discuss your options before proceeding. There is never any pressure to complete the sale. Read our detailed guide on selling a car on finance for more information.
Comparing Payment Methods: The Risks of Private Sales
When you sell a car privately, you are responsible for managing the payment yourself. This creates several risks that do not exist when selling to a professional buying service.
Cash
Cash might seem straightforward, but it carries significant risks for vehicle transactions. Counterfeit notes are difficult to detect without specialist equipment. Carrying large amounts of cash makes you a target for theft. Counting several thousand pounds accurately on a driveway or in a car park is awkward and stressful. There is also no paper trail, which can create problems if the buyer later claims the transaction did not happen.
Cheques and Banker’s Drafts
Personal cheques can bounce days after they appear to have cleared. Even banker’s drafts, which were once considered as good as cash, can be counterfeited. Banks advise waiting at least six working days before treating a cheque as cleared, which means you would need to hold onto the vehicle for nearly a week before handing it over safely.
Fake Bank Transfer Confirmations
This is an increasingly common scam. The buyer shows you a screenshot or notification on their phone appearing to confirm a bank transfer, but the payment has not actually been sent. They leave with the car, and you discover hours later that no money has arrived. Always verify the funds in your own banking app before releasing the vehicle.
Payment Apps and Digital Wallets
Services like PayPal, Venmo, or other payment platforms may offer buyer protection that allows the payer to dispute the transaction after the fact. This means the buyer could reclaim the money after driving away with your car. These platforms are not designed for high-value vehicle transactions and should be avoided.
Our No-Fee Guarantee
When you sell to us, there are no hidden charges. No admin fees, no collection charges, no transaction fees, and no deductions of any kind. The price you agree during your valuation is the exact amount that arrives in your bank account.
We believe transparency is non-negotiable. You should never be surprised by a lower payment than expected. If you have read our frequently asked questions, you will see this is something our customers consistently highlight — what we quote is what we pay.
What If the Transfer Is Delayed?
In rare cases, a bank transfer may take longer than a few minutes to appear. This can happen due to interbank processing delays, maintenance windows at your bank, or security checks triggered by a large incoming payment. If this occurs during your collection, our driver will wait with you until the payment is confirmed.
We will never ask you to hand over the vehicle before you have verified payment in your account. Your security is our priority, and we understand that handing over a vehicle is a significant transaction that deserves proper diligence.
What Our Customers Say
Payment speed and reliability are among the most common themes in our customer reviews. Sellers consistently mention that the money arrived before the driver had finished loading the vehicle. For many people, particularly those who have been let down by private buyers or slow-paying dealers in the past, the certainty of same-day payment is the main reason they chose us.
Frequently Asked Questions
Do you ever pay in cash?
No. We only pay by bank transfer. This is safer for both parties and creates a clear financial record of the transaction. We do not carry cash and will not make exceptions to this policy.
What bank details do you need?
We need the account holder name, sort code, and account number for the UK bank account where you want the payment sent. The account must be in your name. We cannot transfer funds to a third-party account.
Can you pay into a joint account?
Yes, provided the account is in a name that matches either the V5C registered keeper or the person presenting ID at collection. Joint accounts are commonly used and pose no issue.
What if my bank flags the incoming payment?
Some banks apply additional checks to large incoming payments as a security measure. This is normal and usually resolves within minutes. If your bank contacts you to verify the payment, simply confirm that you have sold a vehicle. This does not affect whether you receive the funds — it is just a fraud prevention measure on your bank’s side.
Is same-day payment available on weekends?
Yes. Faster Payments operates around the clock, including weekends and bank holidays. If we collect your vehicle on a Saturday, the payment process is identical to a weekday collection.
Ready to Get Paid Today?
Selling your car or van does not need to be complicated, risky, or slow. Enter your registration, get a free valuation, and if the price works for you, we will collect and pay you the same day. No fees, no delays, no uncertainty.
