Oldguychuck

In the process of selling a Classic Mustang and got to thinking what is the best way to buy or sell a car in this day and age of scams. Gone are the days of a deal being done on a handshake.. It used to be a certified check but have heard of even fake certified checks and many financial institutions will only deposit their own checks without holding for a clearing period. Don't want to be a pita but need to protect myself both when I sell the Mustang and then when I purchase the Vette. Many interested parties are out of state so what is the common wisdom on how to protect both parties during a vehicle sale? Any thoughts would be appreciated...

449er

Cash will always work, but other than cash, a cashiers check from a bank deposited in your account till it clears would be ok on my part. A personal check is also ok with me giving it time to clear

seijack

I guess for me it really depends on the type and kind of car being sold and the amount of money that we are talking about. Almost every car but 2 that I have had over the years was sold by me. I have done mostly cash transactions at the bank, this way I can sign over the title and deposit the money into the bank. I have never taken a certified or a personal check, in most cases over 10K I have taken bank wire transfers into an account that is not tied to any other account. I have only done transactions in this way since I was 18. I never used to dread selling cars in the days before internet, I would just have autotrader take the pictures and 2-4 weeks latter I would sell the car. Now with the internet I just dread it....I would say 8 of 10 parties that contact you are scammers.

FatsWaller

I'd ask your bank what their policy is on e-transfers; can the transaction be reversed / canceled by the other party, and once the funds land in you account, is there any waiting period? I've also heard of escrow accounts being used to protect both parties. Secondly, I'd find out what your liability is until the sold vehicle is transferred into the buyer's name at the DMV.

FAUEE

The safest way is to use a dealer, or have a lien. With a lein, the bank owns the car and will most definitely ensure that the funds are there and good before releasing the title. Let it be the banks problem, not yours.

You may pay a little interest, but it's likely worth it if you're that concerned.

BadAV

In today's world I want cash, or a Certified check verified by my bank with the buyer's bank to be good at time of deposit, with no ability to stop payment after deposit. That means meeting the buyer at one of my bank branches to do the transfer.

Oldguychuck

Thanks for the great suggestions. Cash is always good but when it gets into the tens of thousands no one wants to carry that much cash. I had thought a certified check verified by my bank would be the best option. Was looking for best way without the buyer traveling down but I think that is the best option for everyone concerned.
Thanks again for taking the time to help me out. Have come to see this board as a source for great info.

C6_Racer_X

That's not a bad strategy.

I'll also meet the buyer at their bank. They can get a certified check at their bank, and since I saw it come from the teller, I know it was actually issued by that bank, not "counterfeited." If I'd rather have cash, I also have the option to cash the check while I'm there and walk out with cash.

Meeting at the bank is by far the best course of action, though.

For those who are saying, "give the check time to clear," be aware that "funds availability laws" now mean that you'll see the balance in your account within a day or two, even if the check is fraudulent. It can take weeks for a counterfeit check to make its way back to your bank and at that point, your bank will charge your account back for the amount of the check. You have to give the check time to bounce all the way back, not just "time to clear." If it's an unknown or questionable check, I wouldn't release the title for at least 30 days. Most buyers will balk at that. That's why it's better to meet at the bank the check is drawn on. If you cash the check at the bank it's drawn on, it can't be "charged back" to you later.

buckmeister2

if you are the seller, it is not difficult. Cash, or cashier's check, or proceeds from a loan picked up at the originating bank. If a CC, wait until YOUR bank MANAGER says the payment has absolutely passed any point of redress by any party, then turn over the vehicle to the buyer.

vett_guy

I recently bought a car that was 700 miles from me. I sent a $500 deposit through PayPal, I flew to the sellers location and then, since I deal with Wells Fargo, I went to a branch there and got the cash....handed it to the seller and drove off. The buyer might want to make sure the funds will be there when he gets to you though so tell them to call the branch closest to you and let the bank know how much cash he'll need.

hawkgfr

Eyes wide open but you have to make a decision or nothing will ever happen. Knowledge is power.

Not So Fast

I'm the wrong guy to answer this question, believe me
NSF

h8snow

Never travel with a large amount of cash. If you get pulled over the police can take your money on the spot. Think its called civil forfeiture you can sue to try and get your cash back. Must prove that not drug money. Good luck.

mcandrew67

I just purchased a Polaris slingshot, seller had title we met at Bank of America, we both had BOA accounts so they transferred the money from my account to his account. Made it easy. If he didn't have BOA we could have transferred to another bank or they would issue a cashiers check. He checked his account while she was finishing up and the money was already there. He signed the title and bill of sale and we were done.

buckmeister2

Bobby, one mistake does not a reputation make....

Hope all is well with you.

Jim

Rex Ruby

Look out for fake cash!

jefnvk

From a buyer perspective, when I bought my Corvette, the guy wanted to do the deposit the cashiers check then I come and pick up the car when it clears a week or two later. That was a straight no-go on my end, I told him as much, and he backed off. He called my issuing bank and verified the check somehow. Even over a relatively small amount of money, I wasn't paying while the owner retained possession, I would have walked away over that. If it is really a sticking point between parties, I'd agree to doing the cash/check/wire transfer at a bank branch, that way there is no question of the legitimacy of payment (and offered as much to the seller).

For cash, do yourself a favor and go to Office Max or such and buy a counterfeit detection pen. $6 is worth it for piece of mind.

JJ1956

I agree, just meet at your bank , and you do a verified transfer into his bank account together. Carrying around 30 grand cash is just not smart . Good luck!

I Fly Low

That is a good way to look at it. I just put mine up for sale, and was worried about the same thing, I thought having a lien would be an obstacle to the sale, but you're right, it will protect me.

Reckedhim

I would also put together a Bill of Sale that both parties sign. Something like this: https://www.dcu.org/pdfs/billofsale.pdf