Buying form out of state. Wire or cashier's check

Hi guys, I am about to make a out of state purchase. We're probably going to close the deal remotely. I've been told that cashier's check is a more secure way to go. Can someone be so kind to tell me the pros and cons between the two, and is there anything I need to be careful to protect myself?

Thanks,

get a local member to check out the car in person for you to verify the condition and have the sellers full contact information and copy of their driver license and pink slip and registration before making the purchase. when i bought my car it was a wire transfer. as far as pros and cons of the two it might be better to go to you bank and ask a banker. good luck on your purchase.

jas303 said:

Hi guys, I am about to make a out of state purchase. We're probably going to close the deal remotely. I've been told that cashier's check is a more secure way to go. Can someone be so kind to tell me the pros and cons between the two, and is there anything I need to be careful to protect myself?

Thanks,

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I have purchased four cars out-of-state and I have used a Cashiers Check from my bank. My bank is a very large national bank. Once I had an opportunity to review the car and the documentation I went to the bank with the seller to allow him/her to cash the check. Prior to selecting a branch I ask if there will be a Notary present so the Bill of Sale can be notarized. Most banks have a notary on staff. Its important to set expectations with the seller, so they understand that they will have to go to the branch with you.

There is a Purchase Process article in the wiki that says you can wire the money to the bank itself, and when the seller physically signs over the title, you can release the funds to their account. More here: http://www.nsxprime.com/wiki/Purchase_Process#Protect_Yourself_In_A_Private_Sale

As for the differences between the two methods, from a security standpoint, the seller is taking a risk for accepting a check (could be fake). From the buyer standpoint, you are pretty much risk free. But it's always good to have a local prime member check out the car in question before you devote a plane ticket and you time flying out there for something that is less than what you are expecting.

I bought mine with a cashiers check. They have several security features nowadays that reduces the risk of forgery. Also once you present the check, the seller can call the bank and verify the check as being legit...as long as its during banking hours.

But guys to send money without looking at it,, wow some big b_LLs you have,,, but to have another member check it out is a very good idea

jas303 said:

Hi guys, I am about to make a out of state purchase. We're probably going to close the deal remotely. I've been told that cashier's check is a more secure way to go. Can someone be so kind to tell me the pros and cons between the two, and is there anything I need to be careful to protect myself?

Thanks,

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Can I 1st ask, are you buying the car sight unseen as well as the seller and his/her home OR is it a matter of inspecting the car by visiting the sellers home and then doing the deal at a later time remotely?

Definately pay for a Pre Purchase Inspection including compression check. Then if it checks out meet the seller and drive it before handing over the check. Never buy a car sight unseen.

+1 all good advice but I will tell you that if you have a PPI from a reputable mechanic then it may not be necessary to see it first hand. I sold my Porsche 993 that way to a guy in California - mine was a great one. The buyer got a great deal and we still keep up with each other - I got a good deal too. We were both happy.

I bought my 91 NSX without a prepurchase inspection - smart maybe not- could I have found a better one - maybe or maybe not. I'm ok with my purchase - point here is I don't know what it is your buying - newer or older like mine but if it's the latter it will need things so be aware of that - it is a sure thing it will need somethings - no doubt - the only question is how much - what kind of records are you able to see.

There was an NSX that went up for sale last summer that I missed but I was strung along while we waited for the buyer to get his funds together had he not I'd have been right there with mine! He came thru and actually posted once here. Point is that car was a 93 white - had the hoses, TB/WP done before selling - the car had 17k miles on it and it had never had any paint work at all - it was as perfect an example as could be found - I am still convinced of that - it went for 35,500. For that car at that time it was a great deal and I'm very sorry to this day it didn't work out - I would have bought that car without a PPI sight unseen as the guy that actually wound up with it did.

However, there are few exceptions to the advice you are getting from the others here. This was perhaps one - but they are like needles in a haystack - the car I mentioned, the white one, sold in 10 hours on prime - yep and there was a line of 10 people behind him ready to buy and I was one of them. That is as I say the "needle in the stack" no doubt - so if it's like that and you trust the owner...well you get the point. Get a ppi, and make sure you've seen great detailed pics and have verified all information as best as you can and there really is no advantage one way or the other on check or wire. Trust is the big factor - if you hav a good feeling it will be fine - if not go the extra step.

This is what I did:

1. PPI completed by seller and results were emailed to me by the dealer. I also called the dealer to ask some specific questions.

2. I created an account through a national bank that had a branch near the buyer.

3. We both went to the bank and I transferred the money from my account into his.

4. Bill Of Sale was notarized by the bank. Title, etc. was given to me @ the same time with bank manager as witness.

synth19 said:

This is what I did:

1. PPI completed by seller and results were emailed to me by the dealer. I also called the dealer to ask some specific questions.

2. I created an account through a national bank that had a branch near the buyer.

3. We both went to the bank and I transferred the money from my account into his.

4. Bill Of Sale was notarized by the bank. Title, etc. was given to me @ the same time with bank manager as witness.

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This is great info and it works really well if the seller has clear title to the car - if not it's a little more complicated. My bank here in Atlanta refuses to notarize a bill of sale because of some "legal liability" - that's what they told me.

A PPI is always the best and most sure fire way to work - Synth could not be more on target! That's a real good way to make a transfer as well to - title in hand and money being wired in front of witnesses - very good advice!

jas303 said:

Hi guys, I am about to make a out of state purchase. We're probably going to close the deal remotely. I've been told that cashier's check is a more secure way to go. Can someone be so kind to tell me the pros and cons between the two, and is there anything I need to be careful to protect myself?

Thanks,

Click to expand...

hey I've bought tons of cars over the years, some sight un-seen, some where I flew out there to hand him cash. Here's what I learned:

1) A cashier's check has no risk since you are the buyer. But ask the seller if he will accept one, some will accept, others will not, all depends on if you really know / trust each other.

**I will NEVER EXECPT if the car is leaving my sights the same day. Reason is a cashier's check can be fake, or worst yet the buyer can just call his bank to stop payment. The seller can deposit a cashier's check and if you have a good banking relationship, the bank will release the funds immediately giving the seller a false sense of security!!!

However when the bank tries to collect and it bounces, they will pull the funds from your account automatically and you are responsible. (yes this has happened to me) This is how some scams go on Craigslist....

2) As a seller the only way to guarantee you get the money is with a wire transfer. I know it's difficult to send money sight un-seen but otherwise plan to get a hotel for a day or so til it clears. If you want to take the car the same day, like some of you suggested either setup a new bank account or walk into the bank together to transfer funds.


Big_D: The risk is not whether the cahsier's check is fake or not - it can be totally 100% real but all it takes is one phone call to stop payment just like a normal check. The risk is 100% in the person cashing the check, NOT the person giving one.

I agree with tbromely here, TRUST plays a big role but when it comes to xx,xxx money I think it's better to pay it safe right?



gluck
rick

Really, wow. I didn't even know that you can stop payment on a cashiers check...news to me.

s4play said:

hey I've bought tons of cars over the years, some sight un-seen, some where I flew out there to hand him cash. Here's what I learned:

1) A cashier's check has no risk since you are the buyer. But ask the seller if he will accept one, some will accept, others will not, all depends on if you really know / trust each other.

**I will NEVER EXECPT if the car is leaving my sights the same day. Reason is a cashier's check can be fake, or worst yet the buyer can just call his bank to stop payment. The seller can deposit a cashier's check and if you have a good banking relationship, the bank will release the funds immediately giving the seller a false sense of security!!!

However when the bank tries to collect and it bounces, they will pull the funds from your account automatically and you are responsible. (yes this has happened to me) This is how some scams go on Craigslist....

2) As a seller the only way to guarantee you get the money is with a wire transfer. I know it's difficult to send money sight un-seen but otherwise plan to get a hotel for a day or so til it clears. If you want to take the car the same day, like some of you suggested either setup a new bank account or walk into the bank together to transfer funds.


Big_D: The risk is not whether the cahsier's check is fake or not - it can be totally 100% real but all it takes is one phone call to stop payment just like a normal check. The risk is 100% in the person cashing the check, NOT the person giving one.

I agree with tbromely here, TRUST plays a big role but when it comes to xx,xxx money I think it's better to pay it safe right?



gluck
rick

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Big_D said:

Really, wow. I didn't even know that you can stop payment on a cashiers check...news to me.

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That's the BIGGEST PROBLEM - you are not the only one un-aware, few people know this and that's why I always warn my friends! Crooks bet on this fact to scam you.

Years ago my dad told me a bank draft/cashier's check was 100% foolproof and I learned the hard way unfortunately.....ask any bank and they will tell you the same thing. It can be cancelled!

The worst part is for most of us who are financially secure and have good banking relationships ~ the bank will RELEASE those funds ASAP so you could theoretically use the money. But once they can't collect and find out it's fraudulent, YOU are the one responsible....I hate this part the most!



rick

I used a escrow service to sell a couple of big ticket item and it worked out good.

a Third party ie. escrow.com will hold the funds.
Buyer. submit funds and the funds are verified by the escrow. Buyer get the funds back if the product doesnt show up or it is unacceptable.
Seller. Is guaranteed the fund once the product is accepted by the buyer.

I would be worried if the seller doesnt want to use a escrow service.

It is a small fee but well worth it.

I have purchased two NSX's from another state in the past year. Below are my experiences....both of which went very well!

1) 94 NSX in Los Angelas: I am in Phoenix so I drove out and looked at the car. Liked it and decided to buy it. Drove back to Phoenix that night. Next day I caught a flight back to LA and met the owner at the airport. We went to my bank which happened to have branches in the LA area. Had the banker cut a cashier's check while the seller watched. I then drove home with the car! Had a blast driving it!

2) 00 NSX in Sacramento: Too far to drive from Phoenix just to take a look at a car. Too expensive to fly as well. Seller would only accept cash. I didn't blame him. I had the seller e-mail me tons and tons of photos. The guy was the only owner, the car only had 13k miles and the photos were perfect! Seller seemed very reasonable and in no rush to sell the car. I ran a CarFax and it was clear. Obtained a one way flight to Sacramento the next day, along with tons of cash, and purchased the car. There was so much cash that we took it to his bank and they ran it through a counter as well as examined it for authenticity. Again, don't blame him! Bought the car with no issues whatsoever! Left his house at 6 pm. Had a blast driving it home...made it from Sacramento to Phoenix in eight hours...zoom, zoom!

Now, let me tell you what never to do! Do not ever show your car during the day and not be able to settle on a price with the buyer. Then, sometime after 6 pm or on Sunday, the 'buyer' calls back and says, "Okay, I'll pay what you want. I have a cashier's check all ready to go and will be at your home in 30 minutes to buy it." Buyer shows up and hands seller a cashier's check. Seller takes check and signs the title over to the buyer. Buyer drives off and all is good...or is it? Likely not! You have no way of verifying the cashier's check when the banks are closed. Be very careful and never accept a cashier's check without taking it to the bank to verify it is legit and the funds actually exist in the buyer's account. Then, while the buyer is there, cash the check and get the money.

Now, if you bank at the same bank as the buyer, be aware that the buyer could cancel the check after taking the car and the bank will remove the funds from your account to make the check clear.

Personally, I will not take anything but cash or a cashier's check from a bank, other than mine, and I cash it right there and then. Too much risk for me any other way!

One last note, carrying a ton of cash through the airport is no big deal. Just put it in a carry-on bag that has a heavy shoulder strap. Then, when you get to the TSA folks, tell them what you have before you walk through the X-ray area. TSA will take you aside, wipe your cash down for traces of narcotics, copy your driver's license, call the airport police and ensure you are not a documented criminal, and you are on your way! Took about 10 minutes and everyone was very polite.

Just to be safe, I took my bank withdrawl slip, printed the photos of the car as well as the Craigslist ad and took them with me. I did this in case the TSA or police began questioning me on what I was doing with the money, where I got it and why I had only purchased a one-way ticket with no luggage. Remember, both the police and TSA can seize any large amount of cash they find on someone who can not justify why they have it while in the airport. You will get it back but only after you go to court and can demonstrate it was yours. I thought taking all of this purchase documentation was a good idea in case I began getting questioned about what I was doing with such a large amount of cash. Never came up however!

fkong777 said:

I used a escrow service to sell a couple of big ticket item and it worked out good.

a Third party ie. escrow.com will hold the funds.
Buyer. submit funds and the funds are verified by the escrow. Buyer get the funds back if the product doesnt show up or it is unacceptable.
Seller. Is guaranteed the fund once the product is accepted by the buyer.

I would be worried if the seller doesnt want to use a escrow service.

It is a small fee but well worth it.

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Long story short - fly there to inspect the car and make the transaction in person. Then you won't have any issues and only put $500 on the line for a flight. That's a cheap price to pay for 100% security.

+1 on making the transaction in person. I flew from Seattle to LA to get mine, and the transaction almost didn't get approved. Would have sucked to fly back home, but would have been way worse to lose the money and then have to fly back.

Big_D said:

Really, wow. I didn't even know that you can stop payment on a cashiers check...news to me.

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I didn't know that either. That would defeat the whole purpose of the cashier check then. I thought they were as good as cash.

I know you can redeposit the cashiers check, but only if you had it in hand.

I'm not sure what happens if you told your bank that you "lost" it. I'll ask them the next time I'm at my branch.

Rob4092xx said:

2)
One last note, carrying a ton of cash through the airport is no big deal. Just put it in a carry-on bag that has a heavy shoulder strap. Then, when you get to the TSA folks, tell them what you have before you walk through the X-ray area. TSA will take you aside, wipe your cash down for traces of narcotics, copy your driver's license, call the airport police and ensure you are not a documented criminal, and you are on your way! Took about 10 minutes and everyone was very polite.

Just to be safe, I took my bank withdrawl slip, printed the photos of the car as well as the Craigslist ad and took them with me. I did this in case the TSA or police began questioning me on what I was doing with the money, where I got it and why I had only purchased a one-way ticket with no luggage. Remember, both the police and TSA can seize any large amount of cash they find on someone who can not justify why they have it while in the airport. You will get it back but only after you go to court and can demonstrate it was yours. I thought taking all of this purchase documentation was a good idea in case I began getting questioned about what I was doing with such a large amount of cash. Never came up however!

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I thought large monetary declarations only applies to money going in and out of the country. I don't think it applies to flights within the US. I'm sure they will be suspicious and ask questions, but I don't think you are required to answer them. I don't think they have the authority to confiscate it. I'm not an attorney, so I could be wrong.

I'm sure being cooperative/upfront may go a long way and can keep you from any delays. I just hate giving up my legal rights to authority. Many times being cooperative with gov't official and peace officers can work against you. Always ask them "if they are asking or demanding?". If they are demanding, then tell them "as long as your demanding I will not resist. Otherwise, they do not have your consent." But always do so, in the nicest possible way and without sounding like a jerk.


Why travel with such large amounts? If you have a national bank, then there are branches throughout the country. Just check before you leave. Go to your local branch and tell them what you are doing and if the other branch calls, to approve the withdraw. Call the destination branch also.

I agree with this. I suggested a cashier's check, but the seller refused. SMART on his part. Not that I was planning on ripping him off, but a seller should be paranoid about something like the below happening.

s4play said:

hey I've bought tons of cars over the years, some sight un-seen, some where I flew out there to hand him cash. Here's what I learned:

1) A cashier's check has no risk since you are the buyer. But ask the seller if he will accept one, some will accept, others will not, all depends on if you really know / trust each other.

**I will NEVER EXECPT if the car is leaving my sights the same day. Reason is a cashier's check can be fake, or worst yet the buyer can just call his bank to stop payment. The seller can deposit a cashier's check and if you have a good banking relationship, the bank will release the funds immediately giving the seller a false sense of security!!!

However when the bank tries to collect and it bounces, they will pull the funds from your account automatically and you are responsible. (yes this has happened to me) This is how some scams go on Craigslist....

2) As a seller the only way to guarantee you get the money is with a wire transfer. I know it's difficult to send money sight un-seen but otherwise plan to get a hotel for a day or so til it clears. If you want to take the car the same day, like some of you suggested either setup a new bank account or walk into the bank together to transfer funds.


Big_D: The risk is not whether the cahsier's check is fake or not - it can be totally 100% real but all it takes is one phone call to stop payment just like a normal check. The risk is 100% in the person cashing the check, NOT the person giving one.

I agree with tbromely here, TRUST plays a big role but when it comes to xx,xxx money I think it's better to pay it safe right?



gluck
rick

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vsy05 said:

Why travel with such large amounts? If you have a national bank, then there are branches throughout the country. Just check before you leave. Go to your local branch and tell them what you are doing and if the other branch calls, to approve the withdraw. Call the destination branch also.

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**One thing to keep in mind is that banks sometimes have to "ORDER" large amounts of cash as they don't always keep it on hand. You can't just walk into a bank and ask for say $50,000 cash. Many times you'd be stuck waiting a few days so always call ahead if this is your game plan.

I have never personally CARRIED large amounts of cash to buy a car but the guy I sold my s2000 to recently brought well over $20k in cash to buy my car since I told him to wire me the money and fly in the next day but his wife didn't approve of sending money first (which is understandable). I told him the other choices was to stay at a local hotel one night while the funds cleared and he didn't want to do that either so he elected to bring me cash.

I've counted large amounts of cash in the past selling my motorcycles but one thing to remember is whenever you are counting large amounts of bills, there's always a chance the buyer can "sneak" a few fake bills in the mix and you would never know til its too late and no way to prove it later.....

In my case I drove him with his cash directly to my local bank and made THEM COUNT/VERIFY all the funds at the counter. This avoids issues and puts the responsibility by the tellers. (They had 2 ladies and 2 money counters to double check everything safely and quickly) 30 minutes later we were both on our way

I will say again no way I would accept a cashier's check unless I know that person or I can cash it on the spot with him next to me.

Cash is King then :smile:...except that it makes you paranoid. When I have large sums of money at home it makes me want to have my pistol handy.

I just wanted to add that if you deposit more than $10K in cash at the bank then the IRS gets notified. When I sold my boat and received $30K in cash from the buyer I deposited the money in $9K increments to 3 different banks. I'd rather keep my money MY business and not make it IRS's.

Big_D said:

Cash is King then :smile:...except that it makes you paranoid. When I have large sums of money at home it makes me want to have my pistol handy.

I just wanted to add that if you deposit more than $10K in cash at the bank then the IRS gets notified. When I sold my boat and received $30K in cash from the buyer I deposited the money in $9K increments to 3 different banks. I'd rather keep my money MY business and not make it IRS's.

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Just so you know it's not always $10k, some banks are as low as $5k according to my financial source....so just be aware. But you are 100% right, split the large sums of money.