Hi there,
What are safe ways to accept funds when selling a car. I'm guessing a bank cheque is safe (but a bit of a hassle for the buyer). Is a direct bank transfer safe? I.e., can the buyer contact the bank within a few minutes after taking the car and reverse the transaction?
Cheers,
Cash
Bank cheque can be cancelled.
Direct transfer receipt can be faked and there have been posts where the transfer is pending and then disappears.
Cash could be counterfeit, but very hard for the average person to get hold of.
So none are safe if you are dealing with someone dodgy, but cash is the least one that can go wrong.
Bank cheque can be cancelled.
Not easily.
This “bank cheques can be cancelled” bullshit again? This comes up in every single “what’s the safest way to get paid for my vehicle” thread on this site.
It’s very very hard to cancel a bank cheque and if that cancelled cheque was presented by the person who it was made out to at their bank, then you could be in a lot of shit for cancelling it. Added to this, they don’t reverse it on the spot unless you have the cheque you didn’t use with you.
Bank cheques are NOT the same as personal cheques. They are the bank’s money, not yours. Bank cheques can’t bounce either.
InB4 all the bullshitters turn up with their “well, my bank cheque” stories.
What a load of shit. Your comment insinuated that bank cheques can just be cancelled at the whim of the drawer as you just made a blanket statement with no context on what a valid cancellation works like.
What you failed to mention is that the fact is that you cant just cancel a bank cheque on a whim. You can either hand the bank back the cheque (a bit hard if you gave it to a seller for their car), report it stolen or report it lost. If you report it lost or stolen and the payee named on the cheque goes to cash it, the bank will honor the bank cheque and then hand your details over to the police or their lawyers as reporting it lost of stolen would be "fraud".
So, while yes, a bank cheque can be cancelled, it is under a very very limited set of circumstances and not that easy to do.
if you look at the bank web sites.
I suggest that you go and look up what the requirement is for cancelling bank cheques.
Bank cheque can be cancelled
Not without the cheque
Goolge has way more accurate answers if you look at the bank web sites.
Bank cheque can be cancelled without the cheque. I have done it when real estate ‘lost’ our house deposit cheque.
Whether or not bank cheques can be reversed, how do you know the bit of paper in your hand actualy IS a bank cheque? How do you know what the Bank of Queensland cheque looks like? Anyone with a printer could mock up something convincing in 15 minutes.
Okay, 15 minutes starting now. Go.
Three options, you pick. End of thread.
Yeah, I’m not carrying around $25,000 in “cash” to buy a car. This is the quickest way to get robbed.
Also, I’m not going to stand around while someone counts out $47,000 for their used shitheap. If these (fropanity) want cash, it’s time to move onto buying another vehicle where the seller isn’t a moron.
What if they want a deposit….
Accurate, I once did a $36,000 cash transaction. Waiting for the other side to count out $36k and then counting out the same $36k myself took the best part of an hour all up.
Taking the cash to the bank the next day was also pretty concerning but no one robbed me.
Meet at bank, get them to pay cash to teller into your account. That way you dont need to worry about fake $50 bills.
Great suggestion
That's the only way.
That's what we did. We both have an account with the same bank, so it was easy.
There's a reason why "cash is king".
Bitcoin can't be counter fit
As per what others have said, cash in person to the teller at your bank.
Cash is fine.
Better yet why not donate it.
Instant bank transfer. Used this a few times with no issues. They open their app and make a payment. I open my app and check it’s in my account. Done.
Having said that the tones I’ve used it obviously weren’t scammers so don’t really know if it can actually be reversed
Physical Dollar coins or nothing.
Or ya know… bank cheque.
Cash but ask to go to teller to check if the cash is real.
Bank cheque but depoist at bank so they know.
Small amount (ie: under $10k): Get it in cash and do it at your bank. Deposit it as soon as you get it. (more than $10k in cash will trigger an AUSTRAC and just waste time.)
$10K or more: If you are with the same bank as them, in branch transfer of funds. If different banks, get them to get a bank cheque where you give your details directly to the teller and the teller hands you the bank cheque. You walk down to your bank with the buyer and hand the cheque over and bank it.
Good suggestions.
For the $10K+ suggestion though, what would be the next best thing if the buyer and seller's different banks are located ages away from each other?
bank transfer but obviously dont give car until you have funds
Accepted a bank cheque for my car recently, when i deposited it, was told it wouldn't clear for 3 days. Did clear after that time though.
I sold my Skoda 3 weeks ago. Buyer did a bank transfer Saturday 10.00am. It didn't arrive in my account until Monday morning.
I was starting to panic a bit but his (and his wife) vibe had been good and when I looked up his address, he works for the extended Packer family.
Next time I would insist on PAYid
St Nevis & Kitts Bearer Bonds - the choice of despots, dictators and tyrants since 1952.
Seriously though…..every payment method (other than both of you walking into a bank and making the transfer in person to the other persons account - which is actually how I did the last car we purchased as both were CBA members) has POTENTIAL loopholes. It's just that some are 'bigger' loopholes/risks than others.
Keep it simple - bank cheque and video record or photograph everything during the transaction including the sellers ID etc.
Osko payment or nothing
I like this crazy thing we used to use pre covid. Cash.
PayPal
Never. Too easy to reverse.
I've just recently sold the car ($30k ish). Here's what I did.
The buyer came to my place and inspected the car and negotiated on the price. I told him upfront that it's either cash or bank transfer. If bank transferred, money must be cleared in my account before I can transfer the vehicle.
$1000 deposit must be made before RWC as RWC only valid for 2 months. If RWC passed and buyer changed their mind, the deposit is gone. If RWC failed, deposit refund.
Bank Cheque, cash or bank transfer is fine. Just be upfront with the person by saying unless that money is in my account, you're not taking the car. 99.9% of people are ok with this. We don't do the deposit for inspections. They can organise a mobile mechanic to inspect but we don't let anyone take the cars to workshops etc.
If you’re that concerned about being ripped off whilst doing your own standard due diligence, just don’t sell the car. Insurance job, and the insurer will pay you electronically.
Otherwise, stump up some nuts and get on with it.
The buyer came with cash, I asked for them to deposit it directly at the bank.
I checked my bank account online, then signed it over.
I didn’t go with them to the bank as I was at work but I also met them at my workplace and showed my work ID.
When I next do it, I’ll meet at a bank. Alternatively, you could do an osko transfer just not from CBA as they hold the funds for 24 hours for new accounts.
In working for a bank, I have seen fake bank cheques handed over late friday or saturday morning and not detected by the bank until tuesday morning. Car or bike gone!!
Bitcoin
Cash?