What's Wrong with Bank or Cashier's Checks for Sales Transactions?

[Dan in Pasadena]

This is somewhat OT but I am somewhat of a lurker here and have been shopping for 911's for awhile. Now I am selling my girlfriend's Audi TT in the next couple of days and due to work conflicts we have to make the transaction on Sunday - banks closed. I know cash would be best, but that's a LOT of cash to carry for buyer and for me. What is the latest on forgery scams and the like? Quick responses appreciated.

[john walker's workshop]

read this for starters.

http://www.thesamba.com/vw/forum/viewtopic.php?t=253

other than that, cashier's checks can have a stop put on them. they're not the sure thing that people think. cash is king. make him bring it if he wants the car. when was the last time you got mugged for a wad-o-cash?

[kumma]

Seems like the bank can collect the funds from your account up to months later if it is indeed a forgery. I wouldnt take a bank check on the weekend. At least put it off until monday and check with the bank. Sold a car last summer in tennessee came back to detroit with 30 grand in cash. Felt much more secure than I would of with a bank check.

[mwbaum]

JW is correct. A cashier's check can be canceled or forged. Take a cash deposit for the car and write the guy a receipt......and make final delivery Monday when you can go to the guy's bank with him and have the bank branch manager cut you a bank-check in person, that is guaranteed good and not reversible. Either that or ask for all cash at time of delivery. You can find a safe place to stash for a day no? I am in a financial line of work, and you would not believe the scams we see EVERY DAY on the email alerts......ANYthing can be forged or faked. When I bought my '85 in San Fran on a weekend, I took all cash in my jacket inner pocket on the plane ride and drove the car home to the NW. No worries, and the guy was quite happy to have the green stuff.

[Dan in Pasadena]

Thanks for the fast responses. John Walker - since many of us feel like we "know" you and you have a very strong reputation here I want to ask what you and everyone thinks about acepting Postal Money Orders? I have paid some guys here that way for various parts, but of course for much smaller amounts. Right now I am thinking cash or postal money order only. But if there is a scam with those...I need to know.

[mwbaum]

US postal money orders are better than bank checks......but how do you know (I'm playing Devil's advocate here) that they have not been forged? Sophisticated color printers can do amazing things. Seriously, ask for cash or go to the buyer's bank with him if it is a large sum of money from a stranger imo. If you get a lot of resistance from this request........that is a major red flag.

[john walker's workshop]

postal money orders have a $750 limit, so there would probably be a lot of them. i haven't heard of any PMO (not the carb guy) scams yet, but who knows. cash is safe, but it never hurts to compare ben's face with his watermark, and the ribbon needs to say $100 too. bleaching lesser currency and reprinting $100s on the original paper is getting popular, and they pass the magic marker test.

[campbellcj]

In my experience, banks in effect view all checks -- including counter or cashier's checks -- as well as those bearing them for cashing or depositing purposes as inherently fraudulent. I have even been given the nightmare BS run-around when presenting 5 or 6-figure checks from Fortune 100 companies. Needless to say, I severed all ties with the banks who treated me this poorly.

I'd echo the above advice to consider a check as an initial deposit, potentially with a wait period for it to clear, but a wire transfer or cash would be preferable for the full balance.

If it were really a large amount of money and/or the risk factors justified it, you might even find an escrow service to handle the title transfer. For whatever reason, escrow is de-rigeur for home sales but not widely used for auto sales.

[Walko]

CASH CASH Cash


Michael

[speeder]

Speaking of the "magic marker test", I met a guy who is writing a script about present-day counterfeiters and he told me that the old marker test is the easiest part of all to fake/fool. It's nothing but a PH test, just bleach your stock (paper) and your over that hump. The government basically can't change the currency fast enough to keep up w/ high school kids who are spoofing it as fast as it rolls out.

As for selling on Sunday, simply take a small deposit until Monday AM when you can meet at his bank. That's the proper way to do it anyways, unless it's a $2k car and you just get C-notes.

[RC-Escape]

[i]....., and they pass the magic marker test. [/B]

The magic marker test is a joke. Use your government's million dollar investment in anti-counterfeit technology. On the $20, $50 & $100 notes, I'd check the watermark, microprinting, color shifting ink and the security thread. It amazes me that store clerks use that magic marker - that just indicates the composition of the paper, the easiest part of the note to fake.

[pwd72s]

A tip for carrying large amounts of cash...try not to look like a guy carrying large amounts of cash. Timex watch, well worn work shirt or sweat shirt with sleeves chopped short, faded common name brand jeans, cheap tennis shoes. Oh, wait a minute..that's how I dress most every day anyway!

[mtelliott]

Can you get a copy of the cashiers check in advace, go to your bank and ask them if they feel there will be a problem, then proceed accordingly?

As well, you can report your car stolen if the check bounces. Just make sure you have a good address for the person buying the car.

I don't know but maybe I trust to much.

Michael

[SalazarS2K]

I just went through a series of transactions lately using bank/cashier's checks and haven't had a problem yet. *crossing fingers* The guy who bought my s2000 paid through his credit union, but I was there to pick up the check personally as they signed it. This works well if the guy is local. Banks these days are also pretty wise to the fake cashier's check, so there is usually a phone number to call the bank and verify its authenticity. You just need to supply the bank check number and you'll be ok. I just sold my motor recently and took the guy's license number and business card "just in case." If you can, get the cashier's check number and bank phone number ahead of time before you guys meet. Another version of the bank check would be if the buyer went through a loan process such as capital one auto finance. They have a good system in place to make it easy to verify if the check is real.

[tommy5305]

CASH IS KING..

[Groesbeck Hurricane]

Tom,

Look at a newer bill, hold it up to a bright light, there should be a strip inside the bill (between the layers of fabric) that has numbers on it. If this strip is blank, non-existant, or does not agree with the denomination of the bill then you have a fake/forgery. This does not work with one dollar bills, five dollar bills, or older bills.

I can't remember the number, but a large quantity of all currency floating around is counterfiet. As an experiment in a class many many moons ago we all took bills out of our wallets (17 people in the class) and two of us had counterfiet bills in our possession. Of course, a large percentage of currency in circulation today also has trace amounts of things like cocaine. Just the declining society we live in.

[Grady Clay]

Paul,

You and I are of the same ilk. Don’t look the part. No Rolex, no jewelry, no flashy clothes.



Dan, use an under the pants money belt for large sums of cash. Have a wad of ones and a few 5s, 10s, 20s, 50s, & 100s in your pocket to give up if you are accosted. We went to Kenya a few years ago on “safari” and practiced that technique. Nothing happened but my plan was to start throwing money out of my pockets.

The most secure transactions are at a bank where you see the officer sign the bank check or confirm a wire transfer. Ask the officer if he has valid funds to cover his check or transfer. Yes, cash is king but there are risks there also. You are relative safe with cash from a bank teller, they can’t give you counterfeit.

Be aware that large cash transactions are reported to the IRS and Homeland Security for obvious reasons. You don’t want the FBI breaking down your door because you got cash for your 911.

Do some Pelican searches, there is a lot of good advice on this subject.

Best,
Grady

[CRH911S]

due to work conflicts we have to make the transaction on Sunday

Your making an excuse for yourself and your girlfriend. Cash talks and anything else requires deligence on your part. You can take a cashiers check or personal check. The key here is the title and car don't change hands until the funds clear the bank and the money is credited to your account. Am I missing something here?

[Dantilla]

On my last purchase, I offered to have my bank issue a check in front of his eyes. Seller said if I can do that, than I can bring cash.

So I did.

My only concern as a seller with that is having strangers know that there is that much cash in my house until banks open on Monday.

Best to meet at a neutral site to exchange cash on a weekend.

[Nine9six]

Money orders are up to $1,000.00 each, but the limit may depend on your bank.