What Is the Safest Form of Payment When Selling a Car?
Safe Ways to Accept Payment When Selling Your Car
Selling a used car is definitely a big deal! From meticulously prepping all the important documents, to carefully pampering the exterior and interior, until finally wrapping it up with a bow of a price tag, you name it! After reading and researching through the where and how to sell a used car in Chicago, you must be very excited to exchange your auto into some kind of monetary value. You may opt to sell your car to a private buyer, car dealer, trade-in, or car buyer. As a car seller, you must also take into consideration the best way to receive the payment. You need to be attentive and vigilant to avoid fraud buyers and scammers. So, what could be some safe ways to accept payments when selling your car?
Selling Your Car for Cash
Cash is almost always the best way to go when doing any kind of business. When it comes to selling your car in Chicago, you would not be surprised at all that most car buyers offer the popular "Cash for Cars" service. Receiving cash is one of the surest and easiest ways to get the full, exact payment for your car. But you have to remember that selling your car can get you with hundreds or even thousands of dollars at hand. Rushing to the bank while carrying with you that lump sum of money can be dangerous and you might risk it being stolen. You also need to be wary of counterfeit money when doing the transaction. You would not want to bid adieu to both your car and your cash.
When handling cash, taking precautionary measures can save you a lot of trouble. To be extremely safe, you may want to do the settlement inside the bank. You may suggest to the car buyer to meet you at the bank of your account. This way, the cashier will be able to check the notes if they are genuine and you can deposit the cash into your account right away. Once all settled and cleared, you may hand over the paperwork and close the deal right there. Going to the bank can help protect you from possible theft and false money.
But what if you needed to sell your car quickly on a Sunday and all the banks are closed? Or you had an emergency that demands cash fast, but the timing is beyond the business hours? Well, good news for you! Selling your car with Enrique, the car buyer, can help you solve that problem!
You do not even need to leave your house in search of good deals. Enrique buys your car within the comfort of your home. Dial (224) 236-7010 or send in the details online to get the highest pay for your car. An appointment will be set to verify your car. Once checked and done, you just need to keep safe inside your home as Enrique's team would stop by your place and pay you in person. After which your car is now all set to be towed away. Rest assured that the team follows the Centers for Disease Control and Prevention (CDC) recommended protective measures to avoid the spread of COVID-19. Remember to please stay safe and healthy!
3 Easy Steps to Selling Your Car with Enrique:
Get Quote
Get Paid
Get Towed
Bank Draft or Cashier’s Check
One of the safest methods of payment when selling an automobile is through a check. Let's get to know more about these checks with definitions from Investopedia:
A check (or cheque) is a written, dated, and signed instrument that directs a bank to pay a specific sum of money from a person's account (payer or drawer) to the person to whom the check is written (payee or drawee). A bank draft or a teller’s check is a type of check where payment is made on behalf of a payer that is guaranteed by the issuing bank after a review of the account to see if sufficient funds are available. The bank effectively sets aside the funds from the person's account to be given out when the bank draft is used. Meanwhile, a cashier’s check is written by a financial institution such as a bank or credit union against its own funds. When you request a cashier's check from your bank, money is moved out of your account and into the bank's account, and then a bank representative signs it over to a named third party.
A bank draft or a cashier’s check means that the payee or drawee is guaranteed by the bank with the availability of funds. These checks are commonly requested in transactions involving a large amount of money like buying a car or if the car seller may be having difficulty in collecting payment from a private buyer. They are generally seen as a more secure way of transferring money. You can be sure that these checks would not bounce and the payment is as promised. In contrast, a personal check is made and issued by an individual against funds deposited in their checking account and can bounce if there are no sufficient funds in the payer’s account. In such a way, bank drafts and cashier's checks are safer than personal checks.
Sadly, there could still be the potential risk of altered, forged, fraud, or counterfeit checks. The best solution for this is to schedule the transaction at the bank. This may come as favorable to the car buyer as well, considering that the buyer will not prefer to withdraw or carry a big amount of cash as payment. Meet the car buyer at the bank where he or she has an account. Have the car buyer request for a bank draft or a cashier's check paid to you. You may offer to pay the car buyer’s fees for the check if you like since basically this is being done for your benefit and safety. After receiving the car payment, the bank draft or a cashier's check is deemed good as cash. You may then head to your bank and have it deposited in your account. Complete the transaction and hand over the paperwork and title to the car buyer only after the check has been verified and cleared.
Escrow Payments
An alternative way to receive car payment is through a legitimate escrow account. Investopedia defined Escrow as a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of fulfilling their contractual requirements and completing a transaction. This payment method can be considered as safe provided that you select the services from a licensed and regulated escrow company.
Escrow services work best when you are selling cars online as it has that global reach. With the help of an authorized third party, both the car seller and the car buyer are safe and the transaction can proceed smoothly.
Escrow.com is the world’s most secure payment method from a counterparty risk perspective - safeguarding both buyer and seller, all funds transacted using escrow are kept in trust. You can buy and sell anything safely without the risk of charge-backs. They provide several additional motor vehicle services with a low fee that could give car sellers peace of mind and boost confidence for car buyers.
Wire or Bank Transfers
Wire transfer or bank transfer is a method of electronic funds transfer from one bank account to another bank account, or through a transfer of cash at a cash office. The US law requires banks and money transfer companies to report the sender's name and contact information, as well as the recipient's name, contact information, bank details, account number, and the amount received. By law, large money transfers exceeding $10,000 must be reported to protect your money, the US citizens and residents, and the interests of the government from illegal and fraudulent activity.
Technically, transferring money is usually a faster and safer option than withdrawing and paying in cash. However, you need to make sure to do the transaction on a secure internet connection and be mindful enough not to fall victim to phishing websites. You may select another payment option if you feel uncomfortable giving your bank account details to strangers.
Cashless, Contactless Payments
Contactless payment "tap-and-go" with chip and pin security is another safe and convenient method for car buyers. This may be in the form of debit or smart card which uses radio frequency identification (RFID) technology or near-field communication (NFC). In contactless payment, the transaction is made in close physical proximity by tapping your card near a point-of-sale terminal which is fully built for that system. Most tap payments have a low allowable limit as it generally does not need to enter the PIN, but those with larger dollar amounts may require a signature. To avoid criminals skimming card data, only tap your card on trusted payment centers and terminals. Here at Sell My Car in Chicago with Enrique for Cash, we provide secure contactless payments should this be your payment of choice.
Other Safety Tips To Remember When Selling Your Car:
Be attentive, don't make haste to quickly sell your car
Trust your instinct, avoid suspicious and fraud buyers
Check and screen your prospective buyers
Don't go alone, take someone with you
Meet potential buyers during the day on a public place
Ask the buyer for ID and check if they have a valid driver's license
Have a test drive only with serious buyers
Test drive around busy streets and keep it short
Let's have a Recap!
Cash is still the safest and most preferable form of payment when selling a car, especially at a reasonable amount. Remember to check for authenticity and do count out the money in the presence of the car buyer. If the conditions allow, let the buyer pay you at your bank. Meanwhile, the bank draft or cashier's check can also be a safe way of payment, especially if a large amount of money is involved (greater than $5,000 or more). As fraud checks can exist too, be sure to request one at the buyer's bank. This way you can have peace of mind knowing that the check was legally issued and guaranteed by the bank. But if you like to save your time and effort, you may opt for an Escrow third-party service to help facilitate the transaction. Another option is to receive payment via wire or bank transfer. Just keep in mind though to transact on a secure and legitimate escrow account and online payment website, respectively. Cashless, contactless payment can be an alternative way to accept payments. This tap-and-go speeds up the process of transferring funds, although larger dollar amounts may require a signature.
Final Thoughts
One of the key ingredients to make a successful transaction involves the TRUST between a car seller and a car buyer. The ideal approach is to talk and meet the buyer in person. Negotiate the best price and agree on the safest payment method possible that are suitable for both of you.
During this whole COVID-19 situation, you must find it very challenging to sell your car or to look for prospective car buyers. Stay calm and do not trouble yourself though, because Enrique Car Buyer is just right here for you. We are open for business 24/7 and we follow all CDC recommended protective measures for our staff and our clients. We welcome in-person visits as well as virtual consultations. We offer instant cash payments directly to your place or even contactless payments if you want. So please stay safe and do give us a call - we promise to make all these easy and convenient for you!