Cash only? Or is a check just fine?

July 13, 2012 6:02 PM

Buying a used car. How do I handle the money aspect of it?

When I go to purchase this used car, let's assume it's around 15k, how do I pay the person? I can't imagine that a check is going to be accepted as payment, and it really doesn't seem reasonable for me to show up with a silver briefcase handcuffed to my wrist and 15k in cash inside. So how do people do this? Wire transfer from the bank? That could get costly, I think.

Also, I'm curious. Will someone who is selling me a used car let me take the car for 4-5 hours for a vehicle inspection at my mechanic? What would you leave for collateral? Is this reasonable to expect someone to let me do this with their car?

posted by Spyder's Game to travel & transportation (12 answers total)

I've written a check, and the dealer simply took my word for it. In a private-party sale, it's probably best to use a money order from your bank.

Will someone who is selling me a used car let me take the car for 4-5 hours for a vehicle inspection at my mechanic? What would you leave for collateral? Is this reasonable to expect someone to let me do this with their car?

I've done this. The sellers saw my license and knew where I lived, so they were okay with it.
posted by deanc at 6:13 PM on July 13, 2012

Assuming you have the money, you'd get a cashier's check at the bank for the amount. That's what you do for instance for a down payment on a house.
posted by graymouser at 6:14 PM on July 13, 2012

It depends. I've bought with a personal check from an auto dealer who called the bank and confirmed that I had sufficient funds to cover it. Plus, they take down all your personal information, as well.

If it's person-to-person, a cashier's check is as good as cash. Make sure you make it out to the person and get a receipt, of course!!
posted by xingcat at 6:19 PM on July 13, 2012

There's a lot of jib-jab on the Internet about certified and cashiers checks. But in my experience, with a cashier's check, the recipient can absolutely call the bank and read off the numbers and get the thing confirmed as legit. I've written them and taken them.

Taking the car for an inspection = done this too. The person glanced at my drivers license, noted the info, and let me go. YMMV.
posted by ftm at 6:20 PM on July 13, 2012 [1 favorite]

Re: the inspection, ask the owner of the car to take it to a mechanic you trust. Talk to the mechanic after.
posted by twblalock at 6:22 PM on July 13, 2012

When I recently sold my used car (in like the $2000 range, however), the buyer came to see the car on a Friday, and arranged to come back the next morning with his kid (the intended driver) and a cashier's check, and left that as collateral when they took it to the mechanic. My husband had also cleared out his weekend for the car-selling extravaganza and was prepared to go with the potential buyer to the mechanic and sit and read a book. Or we would have been fine just taking down their license information (he offered the check as collateral). Also since he was buying the car for his kid, his car that he came to my house in was a lot nicer than mine and I assumed he would come back for it. :)

(But we had no dickering on price since we had six serious interested purchasers within a couple hours of posting the ad, that might be complicated if you don't have an agreed price.)

We had three people who came to look at the car, two of whom test drove it, and they were all really nice, normal people who were flexible and understanding about a private-party sale being a situation where both parties are asking for a lot of trust, so there was a lot of, "We'll do whatever makes you comfortable."

It was also pretty normal that people wanted to come take a look at it one evening and maybe test-drive, then go home and discuss it with their family or whatever, and then come back the next day to take it for an inspection. So that's another option, and you could discuss what kind of collateral or information they wanted then.
posted by Eyebrows McGee at 7:04 PM on July 13, 2012

When I was buying a used car from a private party, some of the potential sellers were totally cool with me taking the car to my mechanic. I called first and asked if it would be ok, and I was willing to take them with me/ leave collateral/ whatever else they wanted. Some people flat out said no. I did not go to see those cars.
posted by Weeping_angel at 7:49 PM on July 13, 2012

There's a lot of jib-jab on the Internet about certified and cashiers checks. But in my experience, with a cashier's check, the recipient can absolutely call the bank and read off the numbers and get the thing confirmed as legit.

I used to work at a retail bank. I made out and had signing authority up to $150k on cashier's checks. FTM is right on here.

If they're still nervous about taking the check, you can offer to have them come to your bank with you so they can see the check get issued. Banks also make good meeting places for these kinds of transaction because it's very likely that you won't get murdered there (they have lots of cameras and such).

One tip if you're ever the one accepting the check and need to verify it, don't call the number from on the check itself, look up the bank's number on the web, phonebook, or 411 (or at least verify that the number is correct from one of those independent sources.

As far as doing the inspection, just tell the seller, "I would like to get the car to my mechanic to have it inspected before I buy it. How are you most comfortable getting that done?" As long as they have the title and know who you are and where you live, they have all kinds of recourse to take the car back if you were out to steal it. Before you get it inspected though, the inspection should be the only thing that needs to get done before you buy the car. You should be able to say, "If the inspection comes out okay, I WILL buy this car for the price we've agreed upon."
posted by VTX at 8:07 PM on July 13, 2012

I've always done cash, but the most I've bought or sold a used car was for about $10k. I've gone along with friends (people often want a wingman while car buying) and they did the transaction right at the bank counter -- that would be my suggestion if you are uncertain about how to do this safely and securely.
posted by Forktine at 8:22 PM on July 13, 2012

I'd go Cashier's check, here.

However, if you ever do need to move lots of cash like that, you can order a pickup or delivery (depending on which end of the transaction you're on) with a Cash Services (read: Armored Car) company. I had a friend who was a museum's development director who went to a collect a generous gift (>$200K) from a donor, and the gift turned out to be in cash. She figured it would be irresponsible beyond belief to transport it herself, so she called up the car/cash company that serves the museum's accounting department. They give the cash a ride, by the way, not you.

I'm not sure what the fee structure is, though, sorry.
posted by Sunburnt at 8:32 PM on July 13, 2012

If you both can, you and the seller can meet at your bank. The seller can take their payment in cash or cashier's check on the spot at his choice. Make sure ahead of time that the bank will have that much cash available that day - they may need 24 or 48 hours notice. But, it is their job to do this for you when you want.
posted by caclwmr4 at 9:48 PM on July 13, 2012

My private party auto sales have always happened at the bank so I can also get the title notarized to the new owner (required in some states). Really easy and I don't have to Monopoly man around town with large amounts of cash. Other people I know have gone cashier's check with no problems.
posted by neveroddoreven at 6:38 AM on July 14, 2012