Seller Insisting on Cash

[Gunnerheadboy]

I'm interested in buying a car. Found a car for a pretty good price on autotrader. His phone was available so I gave him a call. Seemed like a regular guy, but he kept on insisting that I pay for the car in cash, even when I offered cashier/certified check. He stated he needs the cash to put a down payment for an SUV. He was also saying that he was moving and so he had the movers in today (don't think this is an important detail, but...). This in in the GTA.

Thoughts? Do you think this is a scam?

[poedua]

I'm interested in buying a car. Found a car for a pretty good price on autotrader. His phone was available so I gave him a call. Seemed like a regular guy, but he kept on insisting that I pay for the car in cash, even when I offered cashier/certified check. He stated he needs the cash to put a down payment for an SUV. He was also saying that he was moving and so he had the movers in today (don't think this is an important detail, but...). This in in the GTA.

Thoughts? Do you think this is a scam?

How much cash are we talking about here ?

[S14_Raven]

Cashier/Certified Cheques are just as good as cash... Beware I say

And you're willing to buy the car sight unseen? Hope you've done your homework.

[Dr. Octagonecologyst]

If it seems fishy to you, just pass.

[poedua]

Cashier/Certified Cheques are just as good as cash... Beware I say

And you're willing to buy the car sight unseen?

Hope you've done your homework.

+1

OP - are you going to ( or did you already ) have this car inspected before you buy it ?

[BluePhirePB]

Inspect the car first. Sounds fishy.

[Gunnerheadboy]

$8,450 is the cost for a Kia Rio5 2009. I was planning to go see it today, give it a drive, inspect it and buy it. But I really didn't feel comfortable as he was insisting cash so I just gave him a call and cancelled it.

[chickenbones]

$8,450 is the cost for a Kia Rio5 2009. I was planning to go see it today, give it a drive, inspect it and buy it. But I really didn't feel comfortable as he was insisting cash so I just gave him a call and cancelled it.

You can't bring 8 grand in cash to some guy you don't know. This is fishy indeed.

[thrifthunter]

If he doesn't trust your certified cheque, then instead of cash tell him you will take him into the bank and do the deal on the spot so you don't have to carry around so much cash on you.

[jeeva86]

I think you provided too much info to the seller. Why would you were ready to buy it right then and there? Bringing cash on the initial meet doesn't sound good at all. You'll never know what's wrong with the car til it's fully inspected. He might've thought you were a sucker and could easily get less cash and dump it to you.

[BDSL]

If I am a seller, I wouldn't trust the "certified" cheque.
If the buyer is not comfortable with cash, he can take me to his bank and issue me a cheque there....
Too many frauds....

[poedua]

$8,450 is the cost for a Kia Rio5 2009. I was planning to go see it today, give it a drive, inspect it and buy it. But I really didn't feel comfortable as he was insisting cash so I just gave him a call and cancelled it.

Do you mean take it to a mechanic you trust to put up on a hoist, scan for codes, check for signs of being in an accident etc. etc. type of inspection ?

[firechkn]

Certified cheques or cashier cheques can be faked. Cash is harder, especially the new $50 & $100 bills. Nothing wrong with asking for cash and $8k is not that much.

If the car checks out I don't see a problem paying cash. I recently help close a cash deal with on a $10K car.

[fantom]

If I am a seller, I wouldn't trust the "certified" cheque.
If the buyer is not comfortable with cash, he can take me to his bank and issue me a cheque there....
Too many frauds....

as a seller I wouldn't trust the "certified" cheque either... I've heard (from a person who deals with a million cheques for a big company) how easily those can be faked and how many times he's encountered them.

so nothing funky there, just the seller being very cautious, I'd say.

and if you have $8K in the account, what's a difference to you to get it out as cash vs. a cheque?

get the car inspected by your (trusted) mechanic, if he OKs it, I don't see a problem with paying out in cash.

[carniver]

briefcase of $5 bills. buy like a boss. make sure to take the briefcase back though as it can cost some money.

[JohnB]

Certified cheques or cashier cheques can be faked. Cash is harder, especially the new $50 & $100 bills..


as a seller I wouldn't trust the "certified" cheque either... I've heard (from a person who deals with a million cheques for a big company) how easily those can be faked and how many times he's encountered them.
.

This...the seller doesnt trust you to give him a piece of paper with 8500, you dont trust him with the cash.

Maybe he is posting on another forum about fishy buyer, wants to buy car ASAP, with some phony paper note that may bounce when he brings it to his bank.

[joeyjoejoe]

I'm currently selling my car, should I just ask for cash then?

[ta66]

I've sold close to 15 cars in a couple of years ranging from $800 - $15,000

I would NEVER accept a certified cheque ......cash only and if the buyer had a problem with that he/she could look for another car

[AnotherCanuck]

I've sold close to 15 cars in a couple of years ranging from $800 - $15,000

I would NEVER accept a certified cheque ......cash only and if the buyer had a problem with that he/she could look for another car

Why? It's essentially the exact same thing, only less paper.

Edit: Missed the posts above about fake cheques.

[mr_raider]

This...the seller doesnt trust you to give him a piece of paper with 8500, you dont trust him with the cash.

Maybe he is posting on another forum about fishy buyer, wants to buy car ASAP, with some phony paper note that may bounce when he brings it to his bank.

WTF? Are we going start using escrow services for Kias?

[EPcjay]

I wouldn't bring 8k cash, what if I get robbed? At least with a cheque, I can get to the bank and cancel it.

[canehdianman]

Go to your bank together to get the bank draft.

[xserverfd]

I've sold close to 15 cars in a couple of years ranging from $800 - $15,000

I would NEVER accept a certified cheque ......cash only and if the buyer had a problem with that he/she could look for another car

Agreed.

[protonova]

In my past 3 transactions. All of them have been done at the bank.

We drive the car to be sold to the buyer's bank. Buyer requests Certified Cheque/Bank Draft/Cash/Direct Deposit/Etc. Seller witnesses all the above transaction and receives payment. Before leaving the bank, ownership and bill of sale is signed and completed.

Seller drops off the buyer at home, transaction completed.

I don't see why anyone would be adverse to the above, unless either party views it as a hassle...

As the buyer, doing the complete transaction at the bank is more safe. No walking around with cash.
As the seller, you verify that the money is legitimate.

[poedua]

In my past 3 transactions. All of them have been done at the bank.

We drive the car to be sold to the buyer's bank. Buyer requests Certified Cheque/Bank Draft/Cash/Direct Deposit/Etc. Seller witnesses all the above transaction and receives payment. Before leaving the bank, ownership and bill of sale is signed and completed.

Seller drops off the buyer at home, transaction completed.

I don't see why anyone would be adverse to the above, unless either party views it as a hassle...

+1

Seems like a ' win / win ' all the way around.

[HyperTech]

when i sold my car last winter, i have specified cash only, because like other people said, bank draft and certified cheque can be fake.

but for your own security, don't bring so much cash on you.

1st. go check the car, if you are satisfied.
2. meet him at a bank location, withdraw the money in front of him(waiting at the back) and he give you the key and you give him the money.

but...make sure the car doesn't have lawn on it, not soled, do your check first man.

[thrifthunter]

Yeah make sure car doesn't have a lawn on it :lol:
funny guy!

[ddp]

Why? It's essentially the exact same thing, only less paper.

Edit: Missed the posts above about fake cheques.

Also some banks hold certified checks, so if he needs money ASAP he won't have it right away.

[packardbell]

Cashier/Certified Cheques are just as good as cash... Beware I say

And you're willing to buy the car sight unseen? Hope you've done your homework.


Bro, they have fake cashier check as well now. Cash is the only way to go or you both go to the bank and do a transfer if you don't want to carry the cash with you.:D

[packardbell]

Yeah make sure car doesn't have a lawn on it :lol:
funny guy!

stop nit picking on people's vocabulary
we all know he means lien:)

[thrifthunter]

stop nit picking on people's vocabulary
we all know he means lien:)

Not nitpicking, razzing.
It did give me a good chuckle when I read it!

[JohnB]

I wouldn't bring 8k cash, what if I get robbed? At least with a cheque, I can get to the bank and cancel it.

Exactly...cancel it after you give it to the other guy.

[stt55pot]

Exactly...cancel it after you give it to the other guy.

hey OP, I have a porsche that I'm willing to sell for 12k cash. Wire me the cash and I will send you this bring new porsche. You won't regret it...:) :) No certified cheques...only cash. rofl.

[JohnB]

hey OP, I have a porsche that I'm willing to sell for 12k cash. Wire me the cash and I will send you this bring new porsche. You won't regret it...:) :) No certified cheques...only cash. rofl.

I am Prince of Nigeria. Please send banking details so we can commence. Await your urgent reply.

God is great!

[niroopg]

That's the problem with buying privately from people you have no connection with. When I buy privately, I buy from people at parents' place of work, friends' friends, some sort of legitimate connection so that there is at least some element of trust and disincentivizes lying. There are too many scammers in the used car industry and just isn't worth the aggravation. Better off paying a couple more grand and getting a CPO car from a dealership that can't magically disappear after the transcation.

I wouldn't pay cash. I would take the buyer to the bank, get a certified cheque in from of him/her and then hand it over. You need a proper trail of transactional evidence. Cash isn't safe unless you take a shotgun and an entourage with you. And I would get a legitimate inspection - you won't be able to do a comprehensive inspection at his house. There is a W5 inspector who runs an inspection only service who is quite reputable. His name is Vince Carnovale and is recommended by the APA.

[Busybuyer888]

Banks do not trust money orders or certified cheques either.

Banks now insist on putting a 10 business day hold on money orders or certified cheques when you go in with one.

The seller concern is legitmate. This is what I suggest ... go into a major bank with the seller and have the seller see the money order/certified cheque being issued from the bank and handed over to the buyer whom will immediately hand it over to the seller.

If the seller is asking for a $500 cash deposit ... that is not unreasonable. (Buyer must be comfortable the seller & car is honest too.)

This is part of the hassle of buying/selling privately.

[xtreemboarder]

I'm interested in buying a car. Found a car for a pretty good price on autotrader. His phone was available so I gave him a call. Seemed like a regular guy, but he kept on insisting that I pay for the car in cash, even when I offered cashier/certified check. He stated he needs the cash to put a down payment for an SUV. He was also saying that he was moving and so he had the movers in today (don't think this is an important detail, but...). This in in the GTA.

Thoughts? Do you think this is a scam?

Sounds like he's in some banana's with his bank. Cash is cash. Certified cheques or bank drafts have to be processed. He could be avoiding a garnishment of his money by insisting on cash and just making up excuses. I'd stay away.



Banks do not trust money orders or certified cheques either.

Banks now insist on putting a 10 business day hold on money orders or certified cheques when you go in with one.


That's not entirely accurate. Being a Customer Representative I'd judge by the clients history. If the amount is substantial I'd try to have it verified through a fax. If both are no go and the draft/cc is not drawn on BNS then the hold is 5 business days domestic and 20 US and international.

Even regulations specify it can't be more than 7 business days; "Since 2007, a subgroup of federally regulated financial institutions, i.e. members of the Canadian Bankers Association, voluntarily agreed to have a maximum cheque hold period of seven business days." - Source (http://www.gazette.gc.ca/rp-pr/p1/2011/2011-03-12/html/reg1-eng.html)

[Busybuyer888]

That's not entirely accurate. Being a Customer Representative I'd judge by the clients history. If the amount is substantial I'd try to have it verified through a fax. If both are no go and the draft/cc is not drawn on BNS then the hold is 5 business days domestic and 20 US and international.

Even regulations specify it can't be more than 7 business days; "Since 2007, a subgroup of federally regulated financial institutions, i.e. members of the Canadian Bankers Association, voluntarily agreed to have a maximum cheque hold period of seven business days." - Source (http://www.gazette.gc.ca/rp-pr/p1/2011/2011-03-12/html/reg1-eng.html)

The point is you don't know if the money order/bank draft is good until many days later ... by then good luck trying to find your car the other guy purchased/scammed from you.

If the banks will not honour a bank draft on the spot, how can we normal people judge if the bank draft is legitimate?

I woudn't sleep very well if I had to wait a week or more to see if a $10K bank draft is honoured (all the while, my car and the buyer has disappeared to who know where). Perhaps, I just worry too much. :cry:

[poedua]

That's the problem with buying privately from people you have no connection with. When I buy privately, I buy from people at parents' place of work, friends' friends, some sort of legitimate connection so that there is at least some element of trust and disincentivizes lying. There are too many scammers in the used car industry and just isn't worth the aggravation. Better off paying a couple more grand and getting a CPO car from a dealership that can't magically disappear after the transcation.

I wouldn't pay cash. I would take the buyer to the bank, get a certified cheque in from of him/her and then hand it over. You need a proper trail of transactional evidence. Cash isn't safe unless you take a shotgun and an entourage with you. And I would get a legitimate inspection - you won't be able to do a comprehensive inspection at his house. There is a W5 inspector who runs an inspection only service who is quite reputable. His name is Vince Carnovale and is recommended by the APA.

+1

Any reputable and competent independent shop should be able to do a robust pre-purchase inspection.