Roger Walling

Questions with cash and bank checks

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 I was just wondering about selling a car for cash.

 If you took the buyer to a bank and had him obtain a bank check in front of you, 

1, Can the bank stop payment to you for any reason?

2, If the cash had been stolen, is there any recourse by anyone         toward you? 

3, If the money was counterfeit, could the bank stop payment on   the check?

4 If he deposited the cash into your account, could there be any   problems in the future?

5, If the buyer cried fraud after receiving the car, could the bank refuse to honor the check?

6, Would the best way be to have the buyer deposit the cash into your "special" account in front of you and then close out the account?

 

 Any comments or experiences that you wish to share?

 

 My bank has assured me that any money that is counted by machine is certified not to be counterfeit. 

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Answers:

 

1 - stop payment for ANY reason? No, only a verifiable reason which would be unlikely given the fact the buyer obtains the check at your bank in front of you and the teller

2 - Not sure about this one - probably something you would need to ask an attorney or LEO

3 - I doubt bank would issue check until they verify the money is not counterfeit

4 - If he deposits the money in your account, I see no reason you should be concerned. 

5 - This is another question probably best answered by an attorney; however, banks typically don't get invovled in civil matters so I think they would honor the check until directed by a court to do otherwise

6 - I have an account that is seperate from my others (actually at a different bank) where I can have money wired, deposited, etc. and then move it out.

 

Banks are in the business of making money transactions.  They don't get involved in transactions between other people if there is a problem.  If a bank issues a certified check, they will honor that check in almost all cases because they verify funds, etc. prior to issuing the check.   I have never had any bad experiences when selling a car with either cash, certified check or wire transfer.

 

Note - I am not a laywer or a banker so I am only giving information based on personal experience.

 

Bob

Edited by Bob Hill
correct typos (see edit history)

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I have nothing to add to what Bob said. All his advice is spot-on. Wire transfers are still safest for you. Cash brings headaches unless you're one of those guys who stuffs it under his mattress to hide it from the tax man, but you roll the dice that some of it might be counterfeit (very rare and unlikely that ALL of what you receive is counterfeit--my banker estimates less than .1% [one tenth of one percent] of $100 bills are bogus, so the risk is quite small). If you can both go to his bank and have them issue you a cashier's check from his account, it's good and you're clear.

 

Be smart and if in doubt, call your bank and ask for options. That's their job. The only thing you absolutely, positively should not do is accept a check of any kind that he hands you in the driveway. Those are ALWAYS bogus.

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1 hour ago, Roger Walling said:

 I was just wondering about selling a car for cash.

 . 

 

 

I've bought most of my cars with cash, but then, most of my cars are what would be considered "low-end" in this hobby, with a value of less than $10,000.  Some of my "rescued" cars (which had to be towed home) were bought for less than $5,000.00.  With that said, and with the exception of the possibility of counterfeit bills, cash is cash, and, once in hand, your primary concern should be the possibility of being robbed. 

 

As a seller, I've had excellent results with wire transfers; however, the process can be a bit more complicated if you are the buyer.  When working a long distance deal, I recommend that the buyer inspect the car personally, and at that time, conclude the transaction face-to-face.  As with any transaction (cash or otherwise), a certain amount of trust is required.  If you feel that the other party is untrustworthy in any way, it's best to back out of the deal. 

 

Cheers,

Grog

 

 

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Wire transfers are very safe.  However not all financial institutions will do them.  I recently sold my RV to a person who was financing it through his Credit Union.  They refused to do a wire transfer, even for a transaction fee. They claimed that $40,000 was to little for them to use that transfer method.

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5 hours ago, Matt Harwood said:

I have nothing to add to what Bob said. All his advice is spot-on. Wire transfers are still safest for you. Cash brings headaches unless you're one of those guys who stuffs it under his mattress to hide it from the tax man, but you roll the dice that some of it might be counterfeit (very rare and unlikely that ALL of what you receive is counterfeit--my banker estimates less than .1% [one tenth of one percent] of $100 bills are bogus, so the risk is quite small). If you can both go to his bank and have them issue you a cashier's check from his account, it's good and you're clear.

 

Be smart and if in doubt, call your bank and ask for options. That's their job. The only thing you absolutely, positively should not do is accept a check of any kind that he hands you in the driveway. Those are ALWAYS bogus.

 

 

The chance of an honest buyer unknowingly passing a counterfeit bill may be low, but buying a car would seem to be one way a crook could "launder" bogus money.

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