EMan 928

I wanted to get your opinion. I am in the process of selling one of my cars to an out of state buyer. I had asked for wire funds. The buyer wants to fly in and pick up the car this wednesday but says his bank wont be able to do a wire in time, so he wanted to bring a certified bank check. As I understand it, even a certified bank check can be stopped for payment. The buyer thinks I'm questioning his integrity, but I'm just trying to protect myself. I just called my bank, and they said that I am incorrect: a ceritifed bank check is as good as a wire. Has anyone had any situations to the contrary?

samsnead

From my limited experience a cahiers check should be sufficient. If it makes you feel better you both could go to your bank to deposit it.

bmartini

I have extensive experience in this. Wiring is the best way to go for a seller. If he buys the cashiers check the same day he comes to pick up the car, or if he buys it on a friday and shows up on the weekend, there is no way to verify the authenticity of the check as most banks take at least 24 hours to process the check purchase in their systems. Hypothetically, he could print up a counerfeit check on his pc, and drive away with your car. Or, the check could be authentic, but as soon as he drives off, he can call his bank and report the check lost. Granted these are all serious crimes, but you wanted to know the facts, and here they are. In the end, you've got a promisory piece of paper, and he has your car. If you want to go with the check, make sure he buys it well in advance of his trip over so you can call his bank (get the number off the internet, not the back of the check) and verify the item. Photo copy his ID and make him bring his receipt to show that he paid for the check. Good luck, I'm sure it will all be fine.

dcdude

When I sold my BMW, Wells put a 5 business day hold on a BofA cashier's check. I was freaked out for 3 business days as my car was with the new owners yet funds hadn't cleared. Intellectually, I knew everything would be fine, but never again! I presume this is due to the proliferaiton of laser-printer based fraud. Never again with checks. Wire or a big sack of cash only, in that order.

Feel free to share this antecote with your buyer.

Damien Lewis

Guys...most banks will only deposit a certain amount of money in your account before clearing a cashiers check in full...ie: your bank will accept a $25,000 cashiers check, but only clear $5,000 and make you wait 5 days to clear the additional funds...in that time, the buyer can cancel the check or dispute it and you'll be out a car and significant money...on the flip side, a wire transfer can be dangerous...people can wire into your account...then use your info to wire money out of your account into an off-shore account making it nearly impossible for you to recover. (This just happened to a friend of mine)..so, if you do recieve a wire, have the wire sent to an account that you set up specifically for wires or into an account you dont use..then transfer the funds out of that account into your main account...never let the money sit in the wire account and never wire into your checking account or savings account. Most banks know this..but never say anything about it.

Good Luck...remember...CASH is KING! But..be sure to go and get a counterfeit pen at a stationary store before accepting any cash so you can make sure the money is legit...

It's sad I know this stuff...but I learn from others mistakes.

Damien

Slow Guy

Actually it's not hypothetical. Not long ago I read of several Corvette sellers being scammed by counterfeit cashiers checks. I've talked to my local bank about this and the seller can't call the bank's 800 number to verify the check, they have to call the actual bank branch that issued the check (at least w/ Am South).

You are correct to be cautious. Have the buyer give you the check info prior to him coming to pick up the car that way you can verify the check before you turn over the car.

Why would it take more time to set up a wire transfer? I think he just doesn't want to pay the 25$ fee most banks charge. With sufficient funds in your account Charles Schwab waives the fee.

rome

Only accept a bank check if it is from a known financial institution AND you have the opportunity to call the bank issuing the bank check to verify its authenticity.

A transfer wire can easily be reversed, so that is not necessarily the best solution.

VNTGSPD

In the past, I have made sure that the check was drawn from a bank that had branches local to me. Then I could go with the buyer to said branch and obtain or transfer the funds. Still not foolproof but there is no reason why one branch can not call the other to verify authenticity and then release the funds.

Good Luck!

jimbo3

+1. I sold a car to a guy answering a classified ad who was completely unknown to me. I drove him to his bank branch in that car and had the cashier's check made out to me and witnessed by the branch manager. Manager also witnessed me signing over the title and giving it and the keys to the new owner and he drove me back home. It made both of us comfortable.

bmartini

untrue. once it's in your account, that is the end of it.

jdistefa

I have done the same thing. Involve a neutral 3rd party in the transaction, get a witnessed signature on the bill of sale and confirm deposit into your account. There's nothing wrong with protecting yourself - in fact it protects both parties in the transaction.

dmwallace

+1 on VNTGSPD and JIMBO3's advice. One additional suggestion if the buyer is bringing the check with him or her...tell them that you want the cashier's check to be complete with the carbon and carbon copy intact. In other words, you don't want to check to be separated from the rest of the form. This will allow you to make a visual confirmation that this is a real check printed at the bank versus an inkjet fake. Asking up front about the bank the buyer will use to obtain the cashier's check is another good question; if you don't recognize the bank name you can request further verification or a different bank.

Regards,
David

EMan 928

Thanks everyone. He is out of state so I can't go to his branch but he is on the 964 forum and very active. So, I'm inclined to give him the benfit of the doubt. He is going to put me in touch with the banker who is doing the loan for the car, so I can ask him/her a few questions. Hopefully, everything will go smooth.

Thanks for your input!

bmartini

ahhh... 993MI you left out that valuable info. he's getting a loan from a bank, they are buying the car then, not him. you're golden. GL.

centerpunch

In any case, NEVER sell a car without a detailed bill of sale signed by both parties detailing the transaction, the car being sold "as-is", no refunds under any circumstances, etc.

I've sold tons of cars, and on the one where the buyer was the happiest when he drove off (E36 M3 convertible), if I hadn't had a bill of sale I'm sure lawyers would have become involved. (When he got home to Chicago, his WIFE didn't like it, and he then emailed me with a bunch of issues, ALL OF WHICH we had covered in detail when he inspected the car!)