Did you read the link? Didn't think so. Go ahead call your bank. I never said they could stop payment. They can be forged/fake and still look real even to your bank. Someone gives you a fake cashiers check. You deposit it and the guy drives off with your car. Tomorrow the bank says the check is no good and removes the funds from your account. Seriously call your own bank and ask.

Read the link it is from consumer reports.

 

That's why you call the bank to verify if you have doubts or hold the title and send it to him when the check clears. Money can be faked too, you know. Forgery is a felony. Unless the buyer is going to chop the car he will not be able to register it.
I did ask my bank and he said the safest method to buy or sell a car is with a cashiers check and call the bank if you have questions.

 

When you say "bank transfer", are you referring to a wire transfer? I would think this would be the safest route, after getting verbal confirmation from both banks (buyer's and seller's) ahead of time that everything was set up and in order. Have it initiated at the time of exchange of paperwork and the buyer taking possession of the car.

 

Probably the safest way, might not be the easiest.

 

This has been an "interesting" thread I hope it helps someone buying or selling. Not all transactions take place Monday through Friday between the hours of 9 and 5. sometimes the bank isn't open to verify (scammers know this stuff). You could make that term of the sale (during banking hours).

A couple of times its been mentioned cash can be counterfeit also. All US currency from 5s 10s, 20s, 50s, and 100 dollar bills have a plastic/magnetic strip in them that states the denomination in them. You don't need any special pens or anything. There is also the hologram/watermark.

 

That is why you call the bank that issued the check to verify. Their book keeping department will have a record of that specific check number and who it is made out to (I know this because I worked at a bank). The only way that could fail is if someone working at the bank created the fake check and altered the logs... but then again the bank balances the accounts every day so if something doesn't add up it's going to get caught.

What I am saying is yes, someone can forge a check and make it look legit; however, if you contact the issuing bank they will have record of it and will validate it's real.

 

I asked the buyer the banks name and number, had the bank get a hold of me to make sure the bank check was good before he ever came. And at that point you can even get your banks to talk to each other to set it up. Just got to watch that they don't have a lien on the title. I had a line on the title but the guy bought the bike in the winter so didn't mind waiting the 30 days for the title. And I would write up a detailed bill of sale instead of generic one. You can one online a print for l Ike 10 bucks through the dmv, or at least I could.

 

Your bank will likely hold the cashiers check for 10 to 15 days.

Here is what we did for our private sell of our camper (which we used to buy the vette). We meet the couple and went to their bank with them, where they had a cashiers check draw out for the amount of our payoff, and w/d cash for the remainder of the deal (for us). We went to our bank and deposited the cash (so we'd have it for my down payment on the vette on the same day). Then I took the cashiers check for the pay-off to our lien holders bank and they gave me the title and release of lien.

I mailed this to the new owners, since our lien holder on the camper was 3 hours away. But if they wanted to, or were less trusting, they could have came to our lienholder bank and got the title right then and there. I had to call ahead to get the pay off and arrange to have the title ready.

Now if you don't have a lien holder, it should be very easy. Try to meet your buyers and their bank. Then you know the check is real. Or better yet, get cash. They get a bill of sales and the keys and title. Everyone is happy.

 

Exactly. Regardless of which of the many ways you transfer money, wire is the safest for both parties. Title is signed and changes hands upon receipt of the funds. If I were a buyer, I wouldn't give up that kind of money while someone "held" the title until it cleared. You can choose how you want to handle it. I'm just giving you the most secure, least dangerous way.

 

Kevin:

Step 1) find the car

Step 2) speak with the seller/owner of the car and find out what payment type the seller wants. Make arrangements for payment. Cashier's check, wire transfer, cash, etc. If it is to be a cash transaction make arrangements with a bank in the seller's local area for the transaction to take place. Depending on the amount the bank may have to order the cash in and that can take two or three days.

Step 3) come to an agreement with the seller as to your inspection of the vehicle, local mechanic inspection, Title, Bill of Sale, warranty or no warranty, license plates, etc.

Step 4) make arrangements with your insurance company to issue an insurance ID card to you for the vehicle. Seller will need to provide VIN.

Step 5) make arrangements for the trip and pick up the insurance ID card, take the trip, test drive the car, pay for the car, call your insurance company and tell them you have taken possession of the vehicle. Drive it home as a great road trip. That is how I bought my car. My wife and I had a great three day road trip home.

Remember that in private sales the majority of vehicles are sold AS IS/WHERE IS and with NO WARRANTY. If you are the most unfortunate person in the world and the vehicle has a catastrophic mechanical malfunction occur as you drive the car away it is not the seller's problem.

Good luck and I hope you have a great experience like we did.