Selling car to a dealer- things to check for?

[5inchfatlip]

Hello- I will most likely be giving my car to a dealer within the next couple weeks if I cant sell it private party. Are there any things special I need to look for from the dealer to make sure everything is ok.

I brought it over last weekend, and said all I have to do is make sure it can pass smog, and he'll give me a check...it's odd, I didnt even start the car, and they didnt even drive it......how can I make sure his check doesnt bounce? I've just always sold through private parties...

thanks.

 

[johndoh]

Don't accept personal or business check from the dealership. Make sure you get a Cashier's check for the full amount. Cashier's check from a bank is almost like cash.

 

[5inchfatlip]

thanks! now how do I know its a cashier's check?? versus a normal one?

 

[lemansnsx]

Originally posted by 5inchfatlip:
thanks! now how do I know its a cashier's check?? versus a normal one?

Just a thought, shouldn't you ask the professionals at your bank this type of question? Basically, you are looking for a check that will have nothing to do with HIM. A cashier's check (and several other types) are drawn on the BANK not his account or the dealership or whatever. HE buys the cashier's check from the bank with his funds. You are then presenting a check drawn against the bank's funds - not his. Call the bank right then and there when he hands the check over and verify it if you are still worried.


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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[Edo]

I've been hearing rumors of false cashier's checks used on E-bay purchases lately.
Might want to keep an eye on that check.
I'd make sure it clears before handing over the title.

 

[ck]

If you don't trust the dealer enough to accept his business check, don't deal with them. A stop payment can be made on a cashier's check as well and there are no guarantees that the funds will be there when you deposit it.

 

[lemansnsx]

Originally posted by ck:
If you don't trust the dealer enough to accept his business check, don't deal with them. A stop payment can be made on a cashier's check as well and there are no guarantees that the funds will be there when you deposit it.

Maybe we're not talking about the same exact kind of check here because that doesn't ring true. The whole point of a cashier's check is that the individual's account/funds/integrity/whatever is no longer an issue. The only one who could stop payment on the bank's check would be the bank, not the individual.

Special Checks:

A certified check is a check drawn on a person's or business's account which the bank guarantees to honor. These checks are often used when large amounts of money are involved, or when the party accepting the check has reason to believe that you might try to stop payment. To obtain a certified check, you must go to your bank. You write a check on your account, and a bank officer stamps the word "certified" across its face. At the same time, the bank freezes an amount in your account that equals the amount of the check. Once the check is delivered to the person named as the payee, you cannot stop payment on it.

A cashier's check offers a guarantee of payment because it's drawn on the bank's own account. To obtain a cashier's check, you give the bank the money to cover the check, or let it withdraw the money from your account. The bank then issues the check made out to the person you designate. Cashier's checks are often used to pay the closing costs associated with buying real estate. Like certified checks, you cannot stop payment on a cashier's check once it is given to the person named as the payee.

The previous poster is correct however: I have heard about stolen or forged cashier's checks hence my suggestion to verify with the bank any check you have any doubts about. I also can't help but wonder why you are dealing with someone if you have such doubts about them...



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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[LJSB]

C.O.D. is G.O.D.
Nothing like cash. You need alot of planes, ships, bombs and soldiers to stop payment on it. However, I agree that if you can't trust the dealer enough to take their check, move on.

 

[lemansnsx]

Originally posted by pbassjo:
C.O.D. is G.O.D.
Nothing like cash. You need alot of planes, ships, bombs and soldiers to stop payment on it. However, I agree that if you can't trust the dealer enough to take their check, move on.

Yeah, I'd love to be setup like that - sell the car and then get held up on the way home - something similar happened to someone I know (not car related) although it sounds like an urban legend.



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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[5inchfatlip]

thanks for the replies everyone- cashiers check it will be! can't wait to get the NSX- hopefullly in a month or so....sorry for the dumb question but here goes...does this check look like any other check?? how do I know that it IS a cashiers check?

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93RX7TT-(4sale for NSX!)
95 Legend LS Coupe
89 Mazda MPV-Daily Beater

 

[lemansnsx]

Originally posted by 5inchfatlip:
thanks for the replies everyone- cashiers check it will be! can't wait to get the NSX- hopefullly in a month or so....sorry for the dumb question but here goes...does this check look like any other check?? how do I know that it IS a cashiers check?

It should be quite clear that it is drawn on the bank itself not on an individual's or business account. IOW, there will absolutely not be an imprint of his or the dealership's name and address. The bank name, etc. will be the only info on there. Go to your bank and ask the branch manager to explain and show you this stuff.

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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[nsxtasy]

I don't understand why anyone wouldn't be willing to accept a business check from a reputable dealer. Presumably when you sell the car to a dealer, there is also a bill of sale that represents a legal contract. So what's the problem with getting a business check from them?

 

[lemansnsx]

Originally posted by nsxtasy:
I don't understand why anyone wouldn't be willing to accept a business check from a reputable dealer. Presumably when you sell the car to a dealer, there is also a bill of sale that represents a legal contract. So what's the problem with getting a business check from them?

I guess the key word is reputable! He doesn't say if this is a new car dealer or a used-car lot. In general, small business checks are some of the most risky checks to accept. I've spent many happy hours in court for this - and not as the defendant, I hasten to add!



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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[ck]

Originally posted by lemansnsx:

Maybe we're not talking about the same exact kind of check here because that doesn't ring true. The whole point of a cashier's check is that the individual's account/funds/integrity/whatever is no longer an issue. The only one who could stop payment on the bank's check would be the bank, not the individual.

I would still have to disagree with you on this. It is true that the bank would have to stop payment on the check, but it can be done at the request of the individual. For example, if the check had been lost or stolen or for whatever other story the person comes up with. Another common misconception is that a Cashier's check is as good as cash. This is not the case. Depending on the customer, a financial institution still has the right to place holds on funds drawn off a cashier check. You can't just go into a bank with a cashier's check and demand instant cash in exchange.

I also doubt that any dealer would go out of their way to go to the bank to get a cashier's check just to buy a car from someone. You can try asking for it, but if they are offering you a good price, I wouldn't pass it up because they won't get you a cashier's check. Good luck!

[This message has been edited by ck (edited 21 March 2002).]

 

[lemansnsx]

Originally posted by ck:
I would still have to disagree with you on this. It is true that the bank would have to stop payment on the check, but it can be done at the request of the individual. For example, if the check had been lost or stolen or for whatever other story the person comes up with. [This message has been edited by ck (edited 21 March 2002).]

If the bank stops payment based on a story at the request of the individual they are leaving themselves open to a lawsuit and damages. They would be stopping payment in violation of the UCC. For all intents and purposes, and barring theft or forgery, a cashier's check is about as safe as it gets.


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Andrew Henderson
The NSX Model List Page

"We have long acknowledged that enthusiasm for things automotive is a sure
sign of emotional instability if not outright dementia" - Brock Yates

 

[Bilulan]

Call the bank right then and there when he hands the check over and verify it if you are still worried.


[/B]

Not that I wouldn't advise you to do this, BUT, I have been burned by a bogus cashier check before. I deal in computer hardware sales, and someone gave me a cashiers check that turned out fake.

The very next time I delt with a cashier's check, I refused the sale until I could get bank verification that the cashier's check was good. The bank could not immediately tell me if it was good or not. They had to perform a search (for lack of a better word) and I received an inquiry #. I had to contact them back some 5 to 6 hours later to find out it was good.

I seriously doubt that even a small established dealer would ever try a bogus check though. Good luck!