bobg1951chevy

How have you handled this situation ?

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A gent is coming from 800 miles away to look at my car, which is for sale.

If he likes it, he pays, gets a clear title and drives or tows it home.

Besides cash, any other form of money to be accepted ?

Price is 20K.

Edited by bobg1951chevy (see edit history)

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Believe this topic has been discussed extensively; however, for that amount many people these days bring the cash. Other than than that strongly suggest that the car not be released until good funds are in your bank account, either by wire transfer or sufficient time has elapsed to ensure that ANY type of paper document/paper has cleared and cannot be refused by buyer's bank. You will most likely get additional responses and suggestions.

Edited by A. Ballard 35R
correction (see edit history)
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I wouldn't accept anything except cash if you're doing it in the driveway, but you may want to get to a bank and have the bills checked ASAP. Not likely to be counterfeit, but my banker has warned me repeatedly about it being a growing problem. And even if the bills are good, depositing more than $10,000 in cash is going to bring you a lot of attention from the IRS--be sure to fill out the proper forms explaining where the money came from. I don't know if sticking it under the mattress is still an option, but it makes paying the mortgage or light bill tougher.

 

A better alternative is if there is a branch of his bank near you, you can go together and get a bank check while you wait. That way you know it's good.

 

I sold a car once on a check and let him take the car but held the title until it cleared. That was probably a mistake, but it turned out OK.

 

It has gotten complicated to make a deal on the spot for a car. Guys sometimes do it at our dealership, but in most cases, we strike a deal, they wire the funds a few days later, and we ship the car to them. We've done on-the-spot deals with cash and by going to the bank as described, but those are the only ways it works. Any kind of check is a no-go, even if it's a bank or certified check or even a money-order. Those are all relatively easy to fake--I have a stack of fake certified checks on my desk.

 

Go with what feels comfortable to you. You'll get an impression for what kind of guy the buyer is and whether you can trust him. Most people are still honest.

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As much as I like dealing in cash, I'm with Mat on this "if there is a branch of his bank near you, you can go together and get a bank check while you wait. That way you know it's good." Even cash is nothing more than a picture printed on a piece of paper and North Korea makes 100 dollar bills good enough to fool the machines in the casinos and clear the local bank.

 

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I think meet at a branch of his bank, if there's one in your area. Bring pink slip and have him write you a personal check, cash it right there in his presence and hand over the pink slip to him. Your spouse drove the sale vehicle to the bank parking lot. And you deposit the money in your bank right across the street before there's a chance of you being robbed.

 

Cash exchange in the driveway sounds too much like a large marijuana buy that could go wrong. What happens there is the money is handed over, the contraband is transferred, then the purchaser takes out a gun and leaves with both the money and the drugs.

Edited by mike6024 (see edit history)
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We sold a car for nearly that much in December. The buyer transferred the money on-line into our account, direct bank transfer or payment. I could see it was there. We changed the ownership after that, first him then me, on line. He did all this on his phone while sitting at our kitchen table. He was good for the cash: he and his son turned up in a Porsche GT3. He also showed me his other baby, a McLaren. Our sale was small beer to him.

 

The paper "title" is just a record of what is on the motor vehicle register. It holds no legal weight. I am not sure when they went to a central register, but it was quite a few years ago. We have no separate state or provincial gov'ts so it is all one register. Easy.

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I agree with all the above.

 

Cash works best if you have a way to handle it.  Best case is you have a good home safe and you're going to buy another car soon, then you're just trading cars.

 

Wire transfer is fast and positive, and as mentioned, if you don't mind the big influx of cash it's a great way to go.   I once sold a Pierce at Hershey and was paid in 30 minutes over the phone, as stated, and it's easy to call your bank and verify the money is there.

 

And, as mentioned, don't trust any piece of paper unless you're at the buyer's bank and you see it processed.

 

I once sold an expensive car at Hershey, mid five figures.  Fellow wanted to write me a personal check, I said no, his wife came back with "but there's 460K in that account", doesn't matter.  He was local to the area, so we drove to his bank, and I sat at the bank manager's desk while she signed a cashiers check.  Now, that I trust. 

 

I remember selling a couple of cars in the 70's and 80's, there used to be a service where the bank held the title until all funds cleared.  But, as mentioned, even holding the title is meaningless if they scam you and part out the car, or change numbers.

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11 hours ago, trimacar said:

I agree with all the above.

 

Cash works best if you have a way to handle it.  Best case is you have a good home safe and you're going to buy another car soon, then you're just trading cars.

 

Yep cash is king as long as phone communications with buyer have been warm and fuzzy. email is OK but always talk on phone to better asess character. When I get cash it does NOT go in bank. Use large gun safe. No need for a paper trail. If you must deposit, deposit under 5k at a time but really, resist urge to deposit in financial institution.

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There's certainly no harm in depositing the cash

you receive in a bank.  Banks--not customers--

have to report all transactions of $10,000 or above,

in order to prevent money laundering.  Intentionally

structuring your deposits to avoid the $10,000 reporting

is illegal.  But transactions of $10,000 and more are common.

 

And as one other thread mentioned, police stations

often have "safe areas" where people can transact

business with strangers.

 

Thankfully, most people are honest, as others above have indicated.

I'm grateful to all those who have trusted me during car purchases.

Edited by John_S_in_Penna (see edit history)
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2 hours ago, John_S_in_Penna said:

There's certainly no harm in depositing the cash

you receive in a bank.  Banks--not customers--

have to report all transactions of $10,000 or above,

in order to prevent money laundering.

 

This is not true. A wad of cash in excess of $10,000 showing up at the bank needs the forms filled out no matter who you are. Your banker and/or accountant will supply the forms, they're easy to fill out, and you won't have problems if you're honest about where the money came from. When I was young and naive and working for another dealer, we were paid for a rather expensive car in cash and I simply took the whole wad to the bank and deposited it (you can't pay the rent or payroll with cash, right?). A few weeks later, the IRS showed up to do an audit. They did the audit and everything was OK, but that was a horrific few weeks and the day of the audit was dreadful. I was sure I was going to get fired.

 

If you deposit cash, do the paperwork and explain where the money came from--we do this all the time. Noting that it is from the sale of a car is OK and you shouldn't have problems. But don't skip the paperwork because you think they won't notice or because you think you'll have to pay your taxes. They WILL notice and the penalties are much harsher than paying a little cap gains on a car sale (which often zeros out if it's a car you've restored).

 

John is correct, however, in saying that doing ten $2000 deposits will get you noticed even though it's below the threshold.

 

Another thought is to have your buyer arrange a wire transfer in advance with his bank. Most banks need you to be there in person to initiate a wire, but if, say, his wife has access to the account and can go to the bank in their home town while he's with you and the car, they should be able to do a wire on the spot. Some banks will let you set it up ahead of time so it goes through on a phone call, but most banks for security purposes won't do it that way. Wires are probably the best way to do this if he can have an authorized person on his end initiating the transfer.

 

Heck, if you have a Paypal account and don't mind getting hit with the fees, just have him do it via Paypal. It's secure and fast and he can do it from his phone. You'll get nicked for something like 2.5%, but it's secure and instant.

Edited by Matt Harwood (see edit history)
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As a buyer I don't think I would feel overly comfortable traveling with $20,000 in cash to buy a car either. If he is that serious have him set it up with his bank. If the deal is made then go to your bank with the buyer and have them contact their bank and make the transfer 

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2 hours ago, John_S_in_Penna said:

Banks--not customers--

have to report all transactions of $10,000 or above,

in order to prevent money laundering.  

 

My experience has been with checks, not depositing cash.

Sorry if I extrapolated the experience too far.

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Checks no problem. Depositing a $250,000 check won't raise any eyebrows. It's the movement of cash that they're watching carefully since drug dealers and terrorists don't typically use checks to conduct their business.

 

Using cash has become problematic. I often get guys trying to tempt me saying, "I'll just bring a stack of hundred-dollar bills and we'll work out a deal," (with the implication being that once I see all those luscious Benjamins, I'll forget how much I need to get for the car). Instead, when I hear someone say, "Cash," I usually put the brakes on, knowing it will cause me more headaches than a check or wire. It has gone from being something that a buyer could use to his advantage with certain seller to something that's a major liability. I DO NOT want cash, sorry.

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The States legal Pot industry only generates and deals in cash as banks are afraid touch it. I was looking to buy a tractor and heard from the stores that they are really doing a lot of business in cash!

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Matt, you bring up a good point about cash.  On a few occasions, selling a car, I've had people show up with cash and try to get the price down by waving hundred dollar bills.  Makes no difference, price is a price, and while usually negotiable, cash doesn't make any difference.

 

I once had a deal on an early (1910) Pierce, it was in the mid-five figures (it was a while back!), and seller wanted cash.  I wanted to give him a cashiers check, and give him the time to make sure it cleared.  He wanted a briefcase of cash, I wouldn't do it as I wanted a paper trail, and the deal fell through.  Later, a friend who's bought a LOT of early cars told me in a case like that, write the guy a check, mark it "refused", give him cash, and you've generated your own record and paper trail.

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  • Location: : Cleveland, Ohio
5 hours ago, John_S_in_Penna said:

There's certainly no harm in depositing the cash

you receive in a bank.  Banks--not customers--

have to report all transactions of $10,000 or above,

in order to prevent money laundering.

 

This is not true. A wad of cash in excess of $10,000 showing up at the bank needs the forms filled out no matter who you are.

 

 

 

Why I have 4 bank accts and deposit little more then 9k in each at a time.....................

 

 

Not interested in filling out forms.

 

also have had overseas buyers buy platinum for me, in exchange for car parts. no need for paypal................... and it can be done quickly on ebay.

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As a buyer, I like those pictures where the seller puts his finger over the license plate in the pictures. I can tell a lot about the amount of cash I am comfortable with, the numbers of extra guns to bring, and so on.

Let's see how long this stays up.

 

Bernie

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I have done deals at both banks and credit unions (many are part of a consortium) have also used wire transfers for large amounts.

 

Few years ago gave my son quite a few benjamins (had sold a car recently) to help buy a house. Mortgage company refused to accept it.

 

ps no forms are required for what is in a safety deposit box.

 

pps why don't we declare the war on drugs over and bring back the McKinley and Cleveland. After all there is a 500 euro note available.

 

ppps there is no problem with an account having over $10k, it  is large individual transactions in cash they are concerned about.

Edited by padgett (see edit history)

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When I purchased the Studebaker the seller went to his bank and set up a holding account (for lack of a better name) in my name. I transferred the agreed amount to it ahead of traveling to pick up the car. We met at the bank, I received the title and car and signed over the account to him. I asked how he did it and he said it was his bankers idea. No cost to me except my original transfer cost. He said the bank did not charge him it was a customer service they offered. He may be a very good customer of that bank but I felt secure and I’m sure he did also. I would check with your bank to see if they have something like this. I know I will try it if I sell any cars. I think it was a Wells Fargo bank just not positive without digging out papers. 

Dave S 

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1 hour ago, padgett said:

pps why don't we declare the war on drugs over and bring back the McKinley and Cleveland. After all there is a 500 euro note available.

 

Salmon Chase ($10,000 bill) and Woodrow Wilson ($100,000 bill,

used at the time only for transactions within the Federal Reserve)

would be interesting too:

 

 

10,000 bill.jpg

100,000 bill.jpg

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It appears wiring the money would be the best approach.

If, however, cash was the method of payment, a $5,000 cash deposit into several accounts would not raise red flags or require forms ?

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I have found that even large check deposits raises some eyebrows at the banks. I had a fairly large wire transfer deposit. A few months later I got this letter from the bank wanting to know what my expected deposits were going to be for the coming year. They had some king of claim saying it was a requirement from the FDIC or some other big brother government entity. I told them it was none of their business. They insisted on having the information until I told them to knock it off or lose my business. They stopped! Found it interesting that about a year and half later this was one of the banks that failed. 

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I sold one of my cars to an overseas buyer several years ago. The funds were transferred by wire. The moment the funds arrived and was confirmed by the bank, I immediately transferred them to another account so the buyer wouldn't be able to retract it for any reason. The buyer was agreeable to wait for me to release the car to his shipper until I was satisfied that I had the money in my account but I was skeptical until the very end. I guess the buyer could have been suspicious of me just the same.

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