Bankers Draft

[spangles]

Can anyone please tell me how these work? I am selling my mercedes vito and a car trader from birmingham is coming to pick it up on monday, weve agreed the price of 8,000 on principle, and when he said would a company check be ok, i said that it would have to be a bankers draft or cash, so he is doing a bankers draft for monday. What should i expect? will the money be cleared funds in my account before they take my vehicle? Sorry to sound thick, but ive just never done one either way. Dave

[Guest NickInTheNorth]

nope, bankers draft is a "cheque" drawn on a bank. Just from the bank rather than the customer.

 

If you have any doubts about the legitimacy of the guy (why not accept a company cheque?) then I would be asking for cash!

[spangles]

nope, bankers draft is a "cheque" drawn on a bank. Just from the bank rather than the customer.

 

If you have any doubts about the legitimacy of the guy (why not accept a company cheque?) then I would be asking for cash!

 

 

 

 

 

 

 

Sorry Nick dont fully understand your reply, I dont want to take a check coz i dont know him from adam, and would rather have cleared funds, and i thought thats what a bankers draft was. Dave

[Elton]

From what Nick's saying, it's a bit like a Building Society cheque, in that the bank print it and the money is taken from the account at the time the cheque is produced.

 

I think.

[Guest NickInTheNorth]

nope, a bankers draft is better than a cheque, but also open to fraud. Company cheques are actually pretty safe, best bet would be cash if you really want to be safe.

 

see here for some info on the potential for fraud with bankers drafts:

 

http://www.autotrader.co.uk/CARS/sell/cc/fr-12.jsp

 

and here:

 

http://www.car-crime.com/bankers_draft.htm

 

and this may be the sort of thing you should look at:

 

http://www.apacs.org.uk/payment_options/chaps.html

Edited March 31, 2006 by NickInTheNorth

[Dave Godwin]

Nick, bankers draughts take 30 days to clear, when you put it in your bank it shows on your balance.

If it duff you will not know for thirty days by then your car is long gone.

Except cash only mate!!!!

[Zigs]

a bankers draft is a guaranteed cheque, as good as cash, the bank will honour it. it will, however, still be treated as a cheque & the money will not be available to you for the normal clearing period. when i worked for a bank, we would process a bankers draft as cleared funds, like cash, meaning you could draw on it straight away, but i think things might have changed since then. ask your branch how they deal with them now.

 

looking at nics post, you had better go with him

Edited March 31, 2006 by ziggy searchfield

[Dave Godwin]

Hi Ziggy, i got that info from my bank when a guy tried to but my charter boat with a bankers draft.

It was a good draft but it have been stolen and i would not have known until the bank bounced it.

Initially it would have shown in my account as cleared but then taken back out of my account by the bank,

 

 

Be Warned

[Guest rabbit]

Whos idea was it to collect the van from your home? If it was the car dealer's I would be concerned, also I would not accept anything other than cash if he was collecting the van. However if it is a kosha trading business than a company cheque I would accept.

Edited March 31, 2006 by rabbit

[Brian Carragher]

Bankers drafts are safer in the main than cheques but there are drawbacks as has been mentioned. Theft and forgery to name the obvious two.

 

Just reverse the positions a second and have a look at this from another angle

 

If you turned up at this dealers premises and wrote him a cheque out for £8000:00 would you be able to drive the van away from the forecourt before the ink was dry

 

Make arrangements to electronically transfer money over between accounts and then get verification from your bank that its there before signing any documents over or better still get cash. If the dealer buys and sells vans for the sums of money indicated then cash should not be a problem. After all you don't know him from Adam and owe him no favours