How do I pay a private seller when buying a used car?

Buying a used car is an exciting step, but it’s natural to feel a little unsure when it comes to making the payment. After all, it’s a big purchase, and you want to make sure everything goes smoothly and securely.
Whether you’re planning to pay in cash, transfer the money online, or use a cheque, there are a few things to keep in mind to protect yourself and keep the process stress-free. This guide will walk you through the safest ways to pay for your car, so let’s get into it.

If you decide to pay for your next car in cash, meet the buyer at a bank. The bank will be able to prove the notes are genuine, which will reassure the seller, and then the money can be paid immediately.
Don’t take cash to a viewing that isn’t at the vendor’s home address. Agree to meet the seller somewhere public and safe and be careful walking around with large sums of money on you. If you can, agree to pay a deposit on the day and pay the full amount later. Bank transfers or drafts are often safer and preferable, especially for more expensive cars.

Bank transfers are typically the fastest way to pay for a used car.
You could use online banking, just be careful when transferring a large amount of money this way. You could also use the CHAPS (Clearing House Automated Payment System) or Faster Payment Service, both of which are quick payments. There is a fee to use CHAPS, and some banks have a limit on how much you can send through the Faster Payment Service.

You could sign a cheque, though these take time to clear, and the seller will often want the funds to clear before giving you the car.
As cheques can be used fraudulently, sellers may not want to use this as a form of payment. As a form of guarantee, you could give the seller a deposit, or leave proof of your name and address, such as utility bill, along with the cheque. If you do write a cheque, make sure it’s crossed and payable to the named recipient only. There’s also the option of a banker’s draft, which is guaranteed by a bank. Drafts can also be faked, so it’s a good idea to go to the bank with the seller, where the funds can be drawn. A banker’s draft doesn’t clear immediately, so again the seller will probably want to wait for the funds to clear before letting you drive away.

Whichever payment option you choose, make sure you’re safe. Whether you’re buying or selling a car privately, never be pressured into making a decision, and stay aware of the latest scams.
Visit our safety and security centre for guidance on how to stay safe when viewing, buying or selling a car.

Buying a car from a private seller comes with fewer legal protections than buying from a dealership.
Private sales are covered by the Sale of Goods Act (1979), which says the car must be “as described” in the advert. The vehicle also needs to be roadworthy, unless you previously agreed it was being sold as scrap or for repairs. Make sure you thoroughly check the car's condition before handing over any money, because enforcing your rights can be expensive and time-consuming, often requiring court or dispute resolution. Check the paperwork is legitimate and take a test drive to make sure everything works as it should. Temporary car insurance can cover you for as little as an hour on that test drive. For more information on your rights when privately buying a used car, visit Citizen’s Advice. Thinking ahead about how you’ll pay can make buying your next car more exciting and stress-free. Just take your time and stay confident – check out our safety and security centre for more guidance, and start browsing our wide selection of vehicles today.