The car seller's protection has been somewhat enhanced by recent changes in banking regulations which mean than any cheque or bankers draft drawn on a UK bank will be guaranteed to clear within 6 working days. Aside from theft on the test drive the danger to the buyer has always largely been seen as in the financial transaction. Traditional problems included:

• dodgy payments and early release;
• canvassers demanding money to send along buyers;
  
• sales to foreign vendors; and
• escrow fraud

But with vendors more aware of possible scams, carscams believes the greater risk comes from changes in insurance practices which could see vendors facing a massive loss, fines and penalty points for abetting uninsured drivers.

Insurance and test drives

Almost every buyer will want a test drive but insurance practices in Britain mean that your car is almost certainly not covered while they undertake the test drive. Unless you are insured any driver or make special provision the best you can expect is that the other driver is covered third party. This means if the buyer crashes your car on the test drive then you are facing the prospect of claiming on your insurance if you are comprehensively insured losing your excess and no claims. If you are insured third party you risk the prospect of total loss.

Worse still, many drivers believe they are covered to drive other vehicles on their own insurance on a third party basis when they are not. Recent insurance practices have meant that many policies are pared to the bone to entice buyers with the lowest premium on price comparison sites and third party cover in other vehicles is frequently a benefit which is eliminated. As the seller it is your responsibility to check they are insured and if they are caught driving without third party cover - or worse still have an accident you could face not only a massive bill and the total loss of your vehicle but potentially 8 points on your licence for abetting an insurance offence as well.

It is thus vital that you check that the other driver has (at least) third pay cover whilst driving/riding your vehicle/bike and do not merely accept their say-so. Alternatively you need to consider taking out short period insurance to cover other drivers for the duration your car is on sale so that you are indemnified if a collision takes place.

Dodgy payments and early release

The rules have recently (30/11/07) changed regarding cheques and drafts drawn on UK banks which means they are now guaranteed to be clear in 6 working days. Please note that value is not guaranteed before the sixth working day and under no circumstances should you release the vehicle before you are assured that he payment has been cleared.

Vendors using Building Society cheques or Banker's Drafts will often claim that these are "as good as cash" but this is not true: cheques and drafts can be forged or stolen and in any event they will not be guaranteed until they have passed through the clearance system in the same way as a personal cheque. Like a cheque, neither a bank draft nor a building society cheque is cleared until six days after it is paid in.

Be particularly wary of buyers who turn up on Friday nights or at weekends when verification would not be possible, especially if they have a sob story. Typically they claim to have travelled a long distance or have missed the last train back. Never release the car under these circumstances.

Be aware that the new rules on cheques do not apply to foreign cheques or drafts (including the Republic of Ireland) which may well take much longer before you are guaranteed value. Make sure your bank irrevocably guarantees that the payment from a foreign bank has cleared before you release the vehicle as overseas transactions can be recalled months later. There is no APACS guarantee on the period it takes for an overseas transaction to clear.

A cash payment is useful but there are good forgeries about so ideally undertake the transaction in a bank in front of a member of bank staff who will verify the transaction.

Beware any convoluted or exotic story regarding the purchase. It may make the transaction more interesting but it is also more likely to be a con and cost you money.

Canvassers

At best canvassers will be other publications who have picked up your advertisement from a rival publication and hope to sell you advertising space in theirs - at worst they are a deception aimed at conning you out of the best part of £100 for matching you with buyers they claim to have but which never show up.