Automotive

Best type of payment to accept when selling a car for a big amount?

  • Last Updated:
  • Oct 2nd, 2018 11:47 am
[OP]
Member
User avatar
Feb 16, 2016
482 posts
148 upvotes
Casselman, Ontario

Best type of payment to accept when selling a car for a big amount?

Title says it all.

I have a very interested buyer that wants to buy my ‘66 mustang for 45k. I have never sold a car for such a big amount before...so I’m a little worried...

What type of payment is the best to accept when selling a car for such a big amount?

Cash?
Bank transfer?
Certified check/bank draft?
E-transfer by email?
PayPal?!

I’m really scared about being scammed. Should I be really worried or am I just being paranoid here?

Thanks!
39 replies
Deal Addict
Nov 21, 2013
4078 posts
2374 upvotes
Really?

well I think you should trade in your car to a dealer then...
Deal Expert
Aug 22, 2011
28776 posts
14583 upvotes
Ottawa
Certified cheque, as the funds are guranteed.
You go with the buyer to the bank, make the deposit, get the green light from the teller and then you can sign the vehicle over.
[OP]
Member
User avatar
Feb 16, 2016
482 posts
148 upvotes
Casselman, Ontario
DoorCrasher wrote:
Sep 29th, 2018 12:21 pm
Really?

well I think you should trade in your car to a dealer then...
Except the dealer will offer me 15k...
Penalty Box
Nov 8, 2017
2192 posts
673 upvotes
Any downside with e transfer by email??

Confirmed instantly. No?
Deal Addict
Nov 21, 2013
4078 posts
2374 upvotes
Potrice wrote:
Sep 29th, 2018 12:27 pm
Except the dealer will offer me 15k...
I think bank draft is the safes IMHO... maybe you should post this in personal finance forum ===> personal-finance-f41/
Deal Guru
Jan 15, 2006
12463 posts
8640 upvotes
Richmond Hill
DoorCrasher wrote:
Sep 29th, 2018 12:21 pm
Really?

well I think you should trade in your car to a dealer then...
Horrible advice.
Deal Expert
Aug 22, 2011
28776 posts
14583 upvotes
Ottawa
Bb0231 wrote:
Sep 29th, 2018 12:33 pm
Any downside with e transfer by email??

Confirmed instantly. No?
Limited to $2000 a day, at least with RBC.
Deal Addict
Nov 21, 2013
4078 posts
2374 upvotes
EP32k2 wrote:
Sep 29th, 2018 12:48 pm
Horrible advice.
Yup. but OP is afraid of all payment method, so there is not much more solutions ;)
Deal Addict
Aug 29, 2011
4325 posts
1788 upvotes
Mississauga
Wire transfer or certified funds.
Penalty Box
Dec 27, 2013
8003 posts
3946 upvotes
Toronto
Potrice wrote:
Sep 29th, 2018 12:16 pm
Title says it all.

I have a very interested buyer that wants to buy my ‘66 mustang for 45k. I have never sold a car for such a big amount before...so I’m a little worried...

What type of payment is the best to accept when selling a car for such a big amount?

Cash?
Bank transfer?
Certified check/bank draft?
E-transfer by email?
PayPal?!

I’m really scared about being scammed. Should I be really worried or am I just being paranoid here?

Thanks!
hey op.

the guaranteed safest way to complete this transaction is to to the customers BANK, WITH THEM, and watch them get the draft from the tellers.

This is guaranteed 100% safe because the bank will not give a draft/issue a draft, to someone that does not have the funds in their account and already cleared. Whether they get it from their line of credit, or cash in their chequing. It's impossible for them to get money that would bounce and impact you.

IF you accept a draft without validating it's authenticity, you take the risk that the draft could be a fake. While rare, it does happen. If you accept a fake draft, you will find out in a few weeks, when the bank takes the money out of your account.

you are not being paranoid.
this is the only method that will guarantee 100% without a dbout the money is legit.

The only other way to do it is if you have the SAME BANK as the purchaser, and when you go to the bank with the customer, he transfers the money into your account at that same moment. This will be 100% the fastest and there will be no hold on those funds.

Again, the teller wont be able to transfer the cash into your account unless those funds have been cleared...:


Caveat:
there is always some level of risk. IF for example, the buyer had deposited funds into the bank and had been "cleared" for some time.. Gets a draft, or transfers the money to you... 6 months later it was determined that the money in the purchasers account was "fraud" or bounced (and it can happen few months later), the bank could then try to get it back. However rather difficult if the bank issued a draft.

just so u understand:
when u buy a draft - your money goes to the bank. The bank then makes the draft with their money.
Penalty Box
Apr 5, 2013
3862 posts
1203 upvotes
markham
daivey wrote:
Sep 29th, 2018 2:09 pm
hey op.

the guaranteed safest way to complete this transaction is to to the customers BANK, WITH THEM, and watch them get the draft from the tellers.

This is guaranteed 100% safe because the bank will not give a draft/issue a draft, to someone that does not have the funds in their account and already cleared. Whether they get it from their line of credit, or cash in their chequing. It's impossible for them to get money that would bounce and impact you.

IF you accept a draft without validating it's authenticity, you take the risk that the draft could be a fake. While rare, it does happen. If you accept a fake draft, you will find out in a few weeks, when the bank takes the money out of your account.

you are not being paranoid.
this is the only method that will guarantee 100% without a dbout the money is legit.

The only other way to do it is if you have the SAME BANK as the purchaser, and when you go to the bank with the customer, he transfers the money into your account at that same moment. This will be 100% the fastest and there will be no hold on those funds.

Again, the teller wont be able to transfer the cash into your account unless those funds have been cleared...:


Caveat:
there is always some level of risk. IF for example, the buyer had deposited funds into the bank and had been "cleared" for some time.. Gets a draft, or transfers the money to you... 6 months later it was determined that the money in the purchasers account was "fraud" or bounced (and it can happen few months later), the bank could then try to get it back. However rather difficult if the bank issued a draft.

just so u understand:
when u buy a draft - your money goes to the bank. The bank then makes the draft with their money.
100% this^^

or cash...but unless you are with the buyer in the bank..I wouldn't accept it..(unless you know the guy)..the bank will hold on deposit a certified cheque or draft as even those can be easily forged

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