Payment From Out of Town Buyer

I haven't had to deal with this before, so I'm going to ask you smart people. What are the safe methods of accepting payment on a car that someone is going to come from out of town to inspect, buy and take with them in one trip?
My instinct is to require cash, but are there any other foolproof methods? He wants to pay with cashiers check. Is that safe for me?

I prefer cash, but I also take Postal Money Orders without much hesitation. The downside is that they are limited to (I think) $500, so it's a PITA once you get up over a couple of thousand dollars.

I've never had a problem with a cashier's check and I've used them frequently when I buy out of town cars.

--Carl

Cash or equivalent only. If it's a Money Order of some sort, arrange the sale on a day that you can both drive to the bank and make sure the payment is legit. Anything that takes 3 days to clear is no good. Remember, this is a stranger who may not want to travel with a large wad of cash, so other payment is OK as long as you can check it out.

have them check with their bank, their bank should be able to supply them with a money order of at least a couple thousand dollars. Have them address the money order to you as a receiver of the funds. My bank (PNC) supplied me with a money order for $3000 for my car.

A couple of you have mentioned money orders. Are those better than cashier's checks, and if so, why?

Find out where he banks (where the cashiers check is coming from) and go there with him to cash it.

I work in the printing business and have seen some incredible fakes.

If he banks at a smaller bank/credit union then I'd have their number handy to call and verify the check is legit. You can't be too careful here. If you sense something fishy then just kill the deal or have the buyer work within your terms.
Just don't wire any money anywhere. That's the usual CL scam.

Paypal?

I've done it with a personal check but I told the guy I am going to wait until the check clears before he could pick up the car.

fornetti14 wrote: Find out where he banks (where the cashiers check is coming from) and go there with him to cash it. I work in the printing business and have seen some incredible fakes. If he banks at a smaller bank/credit union then I'd have their number handy to call and verify the check is legit. You can't be too careful here. If you sense something fishy then just kill the deal or have the buyer work within your terms. Just don't wire any money anywhere. That's the usual CL scam.

Going to a bank is a hugely good idea. Either he can directly withdraw the funds or, if you go during business hours, they can do a money transfer over the phone from his bank to yours. If he schedules a time to call his bank before leaving, it'll be smooth as silk. Finally, you two will both be on camera signing a bill of sale which, if you're feeling shiny, can promptly notarize.

In reply to kylini:

Going to his bank isn't an option. He lives 600 miles away and there are no branches near me. I may call my bank at lunch and ask them about the safest non-cash way to do it. I don't blame him for not wanting to bring cash with him that distance, but also need to protect myself.

I've done cash, and I've also done the "go to the bank with the buyer" thing as well. Both have worked well for me. I would only do a cashier's check where you could get in touch with the bank and verify it was legitimate.

If the transaction was going to occur outside of normal banking hours, cash is easier. I'm not sure what price range you're working within, but I would consider a cash payment to be a reasonable request from a seller up to $10K or so.

Have him find a bank that has branches near both of you. He can get a cashier's check made out to himself and the two of you can go to the branch near you, he can cash it and give it to you right there. They can even notarize the paperwork there if you need that.

Sold the TVR?

^^^^ this ^^^^ if it's made out to him, and he cashes it and then hands you cash ... you're in the clear ... as the saying goes .. "cash is good" this way he can pay you cash without his having to travel with cash in his pocket ... you're in the clear as far as the transaction going sour and the cashiers check being fake

I've never had a problem with cashier's checks. I usually drag the guy into my bank with me and ask the teller if they can verify the check while I'm there, and it's never been an issue.

I took PayPal once from a guy who was having his agent pick up the car, and it was easy and safe, but man that variable 2-5% or whatever fee hurts when you're talking about thousands of dollars.

bravenrace wrote: In reply to kylini: . I don't blame him for not wanting to bring cash with him that distance, but also need to protect myself.

Little known fact, but if you are pulled over and found to have a large wad of cash on you, the police are allowed to seize it without filling charges. The most oft tendered excuse of "I am on my way to buy a car" does not seem to carry much conviction.

Bundles of cash over 10k seems to trip the magic button. Recovery chances are slim to none with no formal avenue for appeal. I understand Florida in particular is zealous in pursuing this fund raising opportunity.

If this were me, and the sum were over 1k, I would ask that we meet at my bank and let my banker talk to his banker.

The amount is $6500, and yes Woody, I sold the TVR. I have very mixed emotions about it. It needs to happen, but I'm pretty sure I'll regret it later.

Can someone explain to me the ins and outs of money orders vs bank checks vs cashiers checks vs any other non-cash form of payment? My understanding is that bank and cashiers checks are essentially the same thing, and money orders are the same but for less money. Is that correct? Is any one more secure than another?

NOHOME wrote: Little known fact, but if you are pulled over and found to have a large wad of cash on you, the police are allowed to seize it without filling charges. The most oft tendered excuse of "I am on my way to buy a car" does not seem to carry much conviction.

Isn't that generally called stealing? If I were a cop I'd be pulling Brinks trucks over all day long!

I sold an Accord to a couple of teenagers who showed up in a car that had been subject to some curious styling choices. They were from somewhere else. They shrewdly negotiated the price down from $7700 to $7500. When we agreed, they opened the trunk and displayed a safe mounted to the trunk floor. He counted out $7500 and put at least twice that much back.

As much as I love cash, I just didn't have a great feeling about this one. I had them follow me down to the bank, exchange their cash for a bank check in my presence and we signed everything over right there.

Money orders, cashier's checks, whatever, are all highly forgeable today. Even 30 years ago, a bank would take another bank's cashier's check/MO and sit on your money until they were comfortable. I don't think that has gotten better. I would consider it reasonably safe from your end if you got a pic of the check, looked up the bank on teh intr4w3bz y0/phone book, called them up and said "your customer is giving me this check, number, amount... is it good?"

I went through this from the other side (buyer) a couple months ago when I got this:

Fortunately, my bank had a branch in his town, although with a different name. He wanted a cashier's check, and preferred that I got the check while he was there at the bank with me. We took his Hummer (background) down to the bank. That's about the safest way for him, if you think about it.

The only money orders I accept are Postal Money Orders.

In reply to Woody:

Why?

Because if they forge a U.S. Postal Money Order, which has been known to happen, BTW, they now have the Feds on their ass instead of the bank. While the bank and local popo will probably do nothing at all, the Postal Inspectors take that stuff serious.

If you're going to the trouble of going to a physical bank branch, or have any doubts about fake cash, cashier's checks, money orders, etc, don't Bob Costas-foot around, wire transfer, end of story.