Is It Safe to Accept Cash When Selling a Car?
“In times of crisis, cash is king!”
- Ricardo Salinas Pliego
Cash is King! You must have heard of this a lot especially in businesses or investment portfolios. This expression simply means that the best and most valuable form of investment money is cash. Whether the stock market goes all-time high or if it suddenly dips, it is always a good idea to keep some of your money as totally liquid, easily accessible, and readily usable funds like that of cold, hard cash.
Cash is commonly one of the easiest ways to receive payment when selling a car. In a sense, it gives you that psychological peace of mind when holding physical cash. Plus, getting cash payment can immediately earn you the exact and full amount for the vehicle. You no longer need to worry about the next down payment when you can have the car buyer deliver the cash in full.
Are you feeling agitated to accept bank checks from strangers, fearing to receive a bounced personal check, or needing that instant cash to pay off your utility bills? Then maybe cash settlement is the way for you. Collecting cash payment is relatively safe when you know how to handle it. But a bundle of cash at hand may likewise pose a problem, so it is best that you also know the other safe methods of payment when selling your car that is most applicable and convenient for you.
For your security, there are two key points that you need to remember when you sell your car for cash:
Car Price
It may be a little bit unnerving for you to receive a considerably large amount of cash because it offers no protection if lost or stolen. Accepting $5,000 worth of cash can already be regarded as a big sum when privately selling your vehicle. You may want to think of an alternative option to safely receive the car payment particularly if the price value you set for your car is more than $10,000. You must dutifully file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives this value in cash from one buyer as a result of a single transaction or two or more related transactions. To prevent money laundering, the Form 8300 provides valuable information to the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN).
Counterfeit Money
You should always keep a keen eye when receiving cash. Protect yourself from getting fake bills and avoid taking the entire burden for your loss. The Division of Financial Affairs (DFA) provides a very helpful guide on how to detect counterfeit U.S. money. If you think you have received counterfeit money, the United States Secret Service provides the following steps on what to do if you receive counterfeit money.
After considering the two important points above, your curiosity may make you wonder about how safe it is for a private car seller to accept cash. Here are some suggestions to help protect yourself when being paid in cash for your car:
One of the safest places to do the transaction is through the bank. Make arrangements to meet at a bank where you and the car buyer both have an account. Once at the bank, let the teller know your intention of selling a vehicle and that you would like to transfer funds to your account from the buyer’s account. You may be directed to a personal banker that would assist you with the transaction. The process may vary from bank to bank. To facilitate the bank transfer, the car buyer needs to fill out a withdrawal slip while the car seller needs to fill out a deposit slip. After the transaction has been completed, you can now sign any necessary paperwork and hand it over, along with the keys, to the car buyer.
In case you and the car buyer do not share an account on the same bank, you may request the latter to meet and pay you in the bank where you have an account. Nicely explain to the bank manager about this car-selling business and they might even offer you a private spot to complete the transaction. Once the cash has been verified by the teller and completely deposited into your bank account, you can now entrust the car keys and paperwork to the new car owner.
Another way around to this is when the car buyer requested that you meet them at the bank where they have an account. Well, this shouldn’t be a problem for you. Aside from bringing the car paperwork, you may prepare along the bank requirements needed to open an account. This solution comes handy to facilitate the transferring of funds from the car buyer’s account to your newly opened account. Instead of risking and carrying out large quantities of money to deposit to your bank (or losing the bank check on your way home or to your bank), you can temporarily open an account and deposit the payment right there and then.
Instead of banks, some private owners and car buyers negotiate to meet at their state Department of Motor Vehicles (DMV)’s area as it is generally safe with some police guarding around. Cash payments can be made here, but you have to make sure that the notes are genuine and in a relatively safe amount for you to be carrying about. One advantage to transact business at DMV is that you can quickly finish things up with transferring vehicle ownership and title. The car buyer would also need to complete the vehicle registration, driver certification, license, and identification to be able to drive the car legally.
Selling a car is no easy task and you need to be able to know where to sell your car safely and know how to manage the car payment, especially when handling cash. You must be able to weigh all the possible options that are pretty reasonable and safe for you and the car buyer. The trust and full cooperation from both parties are essential to be able to complete the transaction successfully. Before you let go of your vehicle, make sure all the needed requirements and paperwork are completed and cleared before handing it to the car buyer.
Are you still looking at where to sell your car for cash safely but don’t know where to start? You may want to reach out to Enrique - one of the most trusted car buyers in Chicago!
You can be worry-free and at ease when you sell your car with Enrique for cash. You will be assured to get the best deal and an accurate fair price for your car’s worth. Enrique’s services are readily available 24/7 and can be easily reached via phone or online. You will be duly contacted and a free quote for your car will be provided upon your request. An appointment will be made once you are delighted with the highest payable amount for your car. Enrique and his team can stop by at your place to handle the paperwork and you can safely receive your cash (or contactless payment if you wish). No need for you to drive your used car to have it sold, the team can have your vehicle picked up or towed as soon as possible. It’s that fast, easy, and convenient - better yet, all within the safety and comfort of your home!
SELL MY CAR IN CHICAGO WITH ENRIQUE FOR CASH DEEPLY CARES ABOUT OUR CUSTOMERS AND OUR PEOPLE, AND THAT IS WHY WE ARE TAKING SERIOUS PRECAUTIONARY MEASURES TO AVOID THE SPREAD OF COVID-19.
