Should I Only Accept Cash When Selling a Car Privately?
Most private car sellers often worry about how to receive their payments. It is mostly their primary concern when selling a vehicle. They fear of getting scammed, and they want to make sure they are transacting with a legit buyer. As a seller, you might be asking, what is the safest way to transfer money when buying a car? Or just mainly, how to safely sell a car? Since the partial economic shutdown in the US last March, to control the spread of the Coronavirus, Americans are now returning to their jobs, and businesses had been reopened. According to Reuters News Agency, many Americans buy used cars in these difficult times to save money. It was said that the growing demand for buying used vehicles has pushed the price to a 20% increase in May 2020. It may or may not be a good time to sell, but many people, mostly from the in-demand field, need cars to get them to their different workplaces.
Accepting Payments.
Although cash can be the best way to pay for a used car, you might be worried about your safety in carrying the money with you, or the thought of getting tricked by fraudsters. Since it is not safe for the buyer or the seller to carry a load of cash, you should know the best ways of accepting payment securely.
Cash Payments. Cash is the easiest way to accept a payment. You do not need to wait for days for the money to reflect in your bank account or wait for a check to clear. You have to let the buyer know that you prefer a cash payment rather than anything else. Despite the fact that accepting a cash payment might be easy, we know that you still worry about your safety. The best option for this is to ask the buyer to meet you at your bank. This way, you can let the teller check if the notes are genuine. You can also have the money directly deposited to your bank account, so you can put your mind at ease, without carrying a large sum of money with you. This is one way of being cautious from scams. Please note that banks are required to create a report for a cash deposit of more than $10,000.
Check Payments. What if the buyer prefers to pay you a check? Some buyers consider using this kind of payment option, as they feel safer than bringing a load of cash with them. Some use a cashier’s check, and others use a personal check. But what is the difference? A cashier’s check is an official check that is guaranteed by the bank. It is more often viewed as more secure and less susceptible to fraud since the funds are drawn from the bank’s account, not from a personal or business account. It is also considered as the most secure way of accepting payment, but we still need to be careful as counterfeiting checks also exist.
A cashier’s check usually has a payee’s name on it printed by the teller. If it’s blank, consider it as a fake check. In accepting this kind of payment, you have to call the issuing bank to verify its validity. Do not just call the number printed on the check, as it can also be fake. You can look it up online to make sure you are calling the legit bank. Same with paying by cash, it is best to meet the buyer at their issuing bank so they can draw the funds and pay you on the spot.
On the other hand, a personal check is a form of payment that is drawn from a personal account, but not guaranteed until it is cleared by the bank at a given time. This kind of check might be risky for someone accepting a payment. You have to be cautious with fake checks. If a buyer will pay you a personal check, you have to be clear that you will only give them the car keys or the paperwork once it clears. It usually takes 2 to 5 business days for the said clearance, depending on the financial institution.
Escrow Payments. This is another payment option but is seldom used. According to escrow.com, an Escrow service is a financial arrangement where a third party (the escrow) holds and regulates the payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in an escrow account, which is only released when all of the terms of the agreement are met as supervised by the escrow company. The purchaser usually pays the escrow, and the said payment is deposited in the escrow account. The escrow then alerts the seller that the account is funded and will be asked to release the vehicle to the buyer. If the arrangements are all met, the funds will then be released to the seller. Using an Escrow service can have service fees. As a seller, you should choose your preferred escrow service. This way, you can be sure that the escrow service is legit and that you and the buyer are both protected.
Sell Your Car Fast & Safe
Sell My Cars In Chicago with Enrique for Cash buys used running cars and is one of the high paying car buyers in Chicago. If you wish to sell your car fast and safe, we are the ones you can call. You can call us at (224) 236-7010, or you can get a free quote online. It is fast because the process is simple and easy, we will reach you at the soonest time, and provide you an offer. Once you accepted, we will schedule you for an appointment to inspect the vehicle. It is safe because, with the current worldwide pandemic, we strictly follow the CDC standards for you and our safety. We will go to your location, so you do not need to drive the vehicle to us. Once your car is inspected and verified, we will then pay you by cash and let you sign the paperwork. It's selling made simple! Contact Us Now!
