Buying a car from private seller - large amount cash transaction

[Peachy]

I am looking at buying a new to us car.
It has been a while since we've purchased a vehicle and am unsure of how people handle such a large cash amount to a private seller these days.

For private sales- we have only purchased with cash in amounts within $7k (even that felt like alot of cash to carry), or through someone we had some direct/indirect connection to so a personal check was acceptable.

We are currently looking at a possible $13-15k car and have found a couple listings through private seller.  Purchasing through a dealer is easy regarding payment - but what is the best way to handle a private deal with someone you don't know?

I'm seeing info that says "cash"  -  but literal cash this amount seems like alot of money to withdraw and hand over for an amount this large (if risky/unsafe?), but I've read that some sellers won't accept a cashier's check as they can be easily counterfeit.   

I've also read that you can both go to your bank and have the cashier's check drawn so they know it's a valid check-  but that presumes that your bank is nearby.   

Maybe I'm out of the loop - what other options are out there?

I found alot of great info on how to check a car, test drive, etc  (i.e. chris-fix.com and videos are excellent) but I'm not really clear on the payment. 

Also what are other concerns/ things to look out for/be aware of when guying this way?

Thanks for any tips/info!

 

[Morning Glory]

Our police station has some designated spots in the parking lot for this type of transaction, the idea being that you are on camera in case anything goes wrong.  Yours might have a similar setup.

[Paper Chaser]

Definitely support doing it at the bank. It's a public place, with lots of cameras, and you won't have to carry the cash around. The seller will have confidence that the funds are legitimate. It works for both parties. Local police station isn't a bad option either, but the cops might wonder what you're doing with $15k cash if they actually observe the transaction.

As for other tips, I'd make sure that the seller owns the vehicle outright, and has the title in their possession. If it's got a loan on it, things get a bit trickier.

[RWD]

Doing it at your bank is one of the best options.

[Louisville]

I prefer to do this at the DMV (or whatever your local auto licensing govt agency is called) sitting in front of a clerk. There is a sheriffs deputy on premise, any outstanding taxes or other problems can be detected and solved on the spot. Then drive the cash straight to your bank. Have someone with you.

[RainyDay]

We bought a used car from a private seller recently, and I had the same concerns as you... I REALLY didn't want to carry gobs of cash around! 

We ended up doing a mix of Paypal, Zelle, and Venmo transactions.  We did a mix because some of these methods have a limit on how much you can transfer at a time (like $5000 per day or something).  We also did part from my account and part from my SO's account.  Generally, the seller can check their balance and see the transfer immediately. 

The other problem with cash (aside from having to *count* a LOT of bills), is that many banks won't give you denominations larger than $20.  That means a big stack of dough if you're looking at $13k!

[Rhinodad]

The other problem with cash (aside from having to *count* a LOT of bills), is that many banks won't give you denominations larger than $20.  That means a big stack of dough if you're looking at $13k!

Playa! Rolling with fat stacks!

[Chris @ Saturday Financial]

Meeting at your bank and exchanging a cashier's check in exchange for the title is a great way to do it.

Most banks charge a very small fee for cashier's checks. Good banks will waive the fee when you request it due to the purchase of a vehicle or a house.

[ericrugiero]

I've used cash in the past (both buying and selling) but have been careful where we meet.  Most recently we met at the seller's bank because he had a lien on the vehicle.

I would never tell anyone I was bringing cash.  Sellers do look at you funny when you pull out 140 $100 bills.  Meeting at a bank, police station, DMV, etc is a good idea. 

It actually makes me more nervous when selling a vehicle and the buyer pays cash.  In that case, the buyer knows I have a stack of cash and anyone who saw the exchange also knows.  I had a guy pull out a stack of cash in the Walmart parking lot in sight of people driving by on a main road.  When I sold the vehicle, I drove straight to the bank while watching my rearview mirror.  That's much higher risk than carrying a wad of cash nobody knows about hidden somewhere on my person.   

Some people like to pull out a wad of cash as a bargaining tool (like the guy who did it in the Walmart parking lot).  I don't do that because I don't want anyone to know I am carrying that much cash. 

[Peachy]

We bought a used car from a private seller recently, and I had the same concerns as you... I REALLY didn't want to carry gobs of cash around! 

We ended up doing a mix of Paypal, Zelle, and Venmo transactions.  We did a mix because some of these methods have a limit on how much you can transfer at a time (like $5000 per day or something).  We also did part from my account and part from my SO's account.  Generally, the seller can check their balance and see the transfer immediately. 

The other problem with cash (aside from having to *count* a LOT of bills), is that many banks won't give you denominations larger than $20.  That means a big stack of dough if you're looking at $13k!

Thanks- didn't think of these options- good to know just in case. Wwith Paypal-  does the recipient see they got the transaction right away?  I've only used it to purchase a few online items. 

[six-car-habit]

  Look at the Title before you hand over any money. Verfiy the VIN # matches between the paperwork and the VIN plate on the car. Ask to see the Sellers drivers license, to see it matches the designated owner on the title.

 I usually will write a 'Bill of Sale" stating the date the car was sold, the VIN # , year , make and model.  That the car is being sold "as-is" - no warranties are implied or promised.  In our state the seller has to turn in a form [ removable from the title] stating who bought the car and for what price within about a week to the state DMV.

   You may want to bring $1000-2000 with you. If the car checks out, you can offer give them a Non-refundable deposit, of the thousand, and ask if they will accept a cashiers check for the balance drawn on XYZ bank or credit union, which you will bring back the next day, or whenever you agree to pick up the car.  Write two identical copies of a receipt for your $1000 with the VIN #, their name and address, how many days you have to bring them the balance, etc. Both sign both copies, one for each party.

  Also, many sellers are willing to meet you at their house, which i prefer.  You may get a better sense of the car's history/ usage by seeing it there. You get a better sense of the owner, and if they seem the type to keep up on the maintenance, have maint records, etc.   Plus if something goes wrong you have somewhere to point the police towards, unlike if you just met in some parking lot.
   I've found most private sellers were willing to go with the 'deposit and return with balance route'. Especially if you crawl around the vehicle giving it a good visual looking over, and respect them by arriving on time , taking it for a decent test drive and asking some informed questions about the vehicle, etc.

  They can verify your cashiers check by calling the institution and supplying the serial #. - before they deposit it. 
     A US Postal Money Order is a valid option.  If they just want cash for the whole amount, and you feel you trust the people , and their neighborhood, bring the balance back in cash the next day.
 If you get a cashiers check put the VIN # or "  for 2006 Model Q Honda " or similar, in the note section , or have the cashier add it to the check before they print it. Protects everyone this way.

[Peachy]

It actually makes me more nervous when selling a vehicle and the buyer pays cash.  In that case, the buyer knows I have a stack of cash and anyone who saw the exchange also knows.  I had a guy pull out a stack of cash in the Walmart parking lot in sight of people driving by on a main road.  When I sold the vehicle, I drove straight to the bank while watching my rearview mirror.  That's much higher risk than carrying a wad of cash nobody knows about hidden somewhere on my person.   

Yes-  it really feels vulnerable that someone would know you have that much cash on you! 

[Louisville]

  Look at the Title before you hand over any money. Verfiy the VIN # matches between the paperwork and the VIN plate on the car. Ask to see the Sellers drivers license, to see it matches the designated owner on the title.

 I usually will write a 'Bill of Sale" stating the date the car was sold, the VIN # , year , make and model.  That the car is being sold "as-is" - no warranties are implied or promised.  In our state the seller has to turn in a form [ removable from the title] stating who bought the car and for what price within about a week to the state DMV.

   You may want to bring $1000-2000 with you. If the car checks out, you can offer give them a Non-refundable deposit, of the thousand, and ask if they will accept a cashiers check for the balance drawn on XYZ bank or credit union, which you will bring back the next day, or whenever you agree to pick up the car.  Write two identical copies of a receipt for your $1000 with the VIN #, their name and address, how many days you have to bring them the balance, etc. Both sign both copies, one for each party.

  Also, many sellers are willing to meet you at their house, which i prefer.  You may get a better sense of the car's history/ usage by seeing it there. You get a better sense of the owner, and if they seem the type to keep up on the maintenance, have maint records, etc.   Plus if something goes wrong you have somewhere to point the police towards, unlike if you just met in some parking lot.
   I've found most private sellers were willing to go with the 'deposit and return with balance route'. Especially if you crawl around the vehicle giving it a good visual looking over, and respect them by arriving on time , taking it for a decent test drive and asking some informed questions about the vehicle, etc.

  They can verify your cashiers check by calling the institution and supplying the serial #. - before they deposit it. 
     A US Postal Money Order is a valid option.  If they just want cash for the whole amount, and you feel you trust the people , and their neighborhood, bring the balance back in cash the next day.
 If you get a cashiers check put the VIN # or "  for 2006 Model Q Honda " or similar, in the note section , or have the cashier add it to the check before they print it. Protects everyone this way.

This is why I do this at the DMV.

[Fishindude]

I sold a car last summer.  Met the buyer at my bank where we would be on camera, let him test drive it with me as passenger, then we made a deal.   Went inside the bank at the teller counter where we called his bank and did a wire transfer from his account to min.   When money showed up (pretty much immediately), I signed the title over and had one of the girls at bank notarize it.    Easy Peasy !

Wouldn't bother me to do a cash transaction at the bank either.

[MilesTeg]

I am looking at buying a new to us car.
It has been a while since we've purchased a vehicle and am unsure of how people handle such a large cash amount to a private seller these days.

For private sales- we have only purchased with cash in amounts within $7k (even that felt like alot of cash to carry), or through someone we had some direct/indirect connection to so a personal check was acceptable.

We are currently looking at a possible $13-15k car and have found a couple listings through private seller.  Purchasing through a dealer is easy regarding payment - but what is the best way to handle a private deal with someone you don't know?

I'm seeing info that says "cash"  -  but literal cash this amount seems like alot of money to withdraw and hand over for an amount this large (if risky/unsafe?), but I've read that some sellers won't accept a cashier's check as they can be easily counterfeit.   

I've also read that you can both go to your bank and have the cashier's check drawn so they know it's a valid check-  but that presumes that your bank is nearby.   

Maybe I'm out of the loop - what other options are out there?

I found alot of great info on how to check a car, test drive, etc  (i.e. chris-fix.com and videos are excellent) but I'm not really clear on the payment. 

Also what are other concerns/ things to look out for/be aware of when guying this way?

Thanks for any tips/info!

 

Go to a bank, exchange title for cashier's check made out right in front of buyer.

Never carry large amounts of cash on your person. Youre a big easy target for criminals both in and out of uniform.

[dignam]

Complete the transaction at the bank with bank/cashier's check only.

When I sold my car last year private party ($18.5k), I signed the title over at the buyer's bank as he handed me the cashier's check.  The bank let us use one of their conference tables to do this.  Drove immediately to my bank to deposit the check.

[simonsez]

If completing the transaction at a bank, make sure you don't have to schedule an appointment and that you can actually go inside and have a space to conduct business.  At my bank during the pandemic they only allow people inside the lobby (as opposed to the drive-thru) that have appointments.

[PDXTabs]

I've always insisted on a cashier's check.

[Paul der Krake]

You must witness the cashier issue the check with your own eyes at their bank, or it's meaningless.

[Bloop Bloop Reloaded]

My last car I sold for $12,000 in cash and the buyer came to my house and handed over 120 $100 dollar bills (we counted them together). I wrote out a receipt.

The buyer's whole family came along - nice people - and I took a copy of the buyer's photo ID. I wasn't overly worried that the cash would be counterfeit (Australian currency isn't that easy to counterfeit) nor did I care that this person had evidently stashed $12k under her mattress.

The easier option would be a bank cheque, and meet at the bank so the cheque can be immediately cashed.

[Sandi_k]

I've always insisted on a cashier's check.

Nope, cashier's checks are easy to forge.

Wire transfer only.

[PDXTabs]

I've always insisted on a cashier's check.

Nope, cashier's checks are easy to forge.

Wire transfer only.

I meant as the buyer, but I guess that a wire transfer will work. Usually we go to my bank together.

[BradminOxt19]

I've always insisted on a cashier's check.

Nope, cashier's checks are easy to forge.

Wire transfer only.

due to potential for errors, and wire scam fraud, where one little mistake means you never see that money ever again, I will *NEVER* do wire transfers.

I will only do cashier's check at a bank.

I can't believe people are advocating for wire transfers when a simple mistake can cost all of your money.

Plus wire transfers are expensive, $50 or more to send / receive, even when done correctly.  No way.

https://www.10news.com/news/local-news/san-diego-news/couple-wires-800-000-home-down-payment-to-scammer

Some scammer made off with sweet $800k of cash. Couple was never able to get it back.   

[GoCubsGo]

I was selling a car awhile back for $14K.  Two guys showed up, both elderly.  The guy in his 80's pulled out a bag of $12K and said take it or leave it.  I declined and said he probably shouldn't walk around with that much cash.  He said "That's why I brought my bodyguard" His buddy was all of 75 years old haha.  Old school cash deals still appeal to a certain generation.

[Nate R]

I was selling a car awhile back for $14K.  Two guys showed up, both elderly.  The guy in his 80's pulled out a bag of $12K and said take it or leave it.  I declined and said he probably shouldn't walk around with that much cash.  He said "That's why I brought my bodyguard" His buddy was all of 75 years old haha.  Old school cash deals still appeal to a certain generation.

And, was that the right choice? How much did you get for the car?

[dogboyslim]

Doing it at your bank is one of the best options.

Second.  I found most buyers will take a cashier's check if they get it directly from the teller.  Also, there is usually security, and if the seller does want cash, or if you want cash from the buyer, having all the vehicle transaction papers helps the bank/credit union know that its not a suspicious transaction.  They still report the large deposit/withdrawl, but they can note it as a vehicle sale in their comments.

I've purchased/sold 2 motorcycles and a trailer this way and buyer/sellers have always been happy and no one worried they were getting ripped off.

[Just Joe]

Meeting at your bank and exchanging a cashier's check in exchange for the title is a great way to do it.

Most banks charge a very small fee for cashier's checks. Good banks will waive the fee when you request it due to the purchase of a vehicle or a house.

This is what I do. Note that there are instances in some states where traffic stops by police have led to large sums of cash being seized and the owner has to prove it was not something illegal.

[norajean]

I sold a car via Craigslist for $25k. I was away. My spouse showed him the car, received the cash in a bank lobby, then walked home with it. Worked out ok but I would prefer a bank check drawn in front of me at the buyers bank. Not everyone has a physical bank these days so that could be a problem.

[ericrugiero]

... Note that there are instances in some states where traffic stops by police have led to large sums of cash being seized and the owner has to prove it was not something illegal.

This would be the least of my worries.  Buying/Selling a vehicle is totally legitimate and should be easy to prove.  You would get the money back after some small hassle.  Also, the odds of being searched are low unless you are doing something wrong.  I'm much more concerned about being robbed (or injured to while they are taking the money).

[KarefulKactus15]

I dont do cash for anything over 3-4k.

Its too hard to count.   Cashiers check in the bank lobby or DMV lobby if you are in a state that will issue a temp tag same day so you can legally drive the vehicle home.

[RWD]

... Note that there are instances in some states where traffic stops by police have led to large sums of cash being seized and the owner has to prove it was not something illegal.

This would be the least of my worries.  Buying/Selling a vehicle is totally legitimate and should be easy to prove.  You would get the money back after some small hassle.  Also, the odds of being searched are low unless you are doing something wrong.  I'm much more concerned about being robbed (or injured to while they are taking the money).

Have you not read much on civil forfeiture? It can take months or years to get the money back, if you win at all. Regardless of how legitimate it was that you had cash on you.

[ericrugiero]

... Note that there are instances in some states where traffic stops by police have led to large sums of cash being seized and the owner has to prove it was not something illegal.

This would be the least of my worries.  Buying/Selling a vehicle is totally legitimate and should be easy to prove.  You would get the money back after some small hassle.  Also, the odds of being searched are low unless you are doing something wrong.  I'm much more concerned about being robbed (or injured to while they are taking the money).

Have you not read much on civil forfeiture? It can take months or years to get the money back, if you win at all. Regardless of how legitimate it was that you had cash on you.

No I have not.  But, it's not something I'm worried about in my personal situation.  I've been pulled over for minor traffic violations but am generally law abiding and have never in my life been searched by authorities.  There is no reason for a search of my person or my vehicle to happen and I'm certainly not going to flaunting a stack of cash.  Authorities in my area aren't looking for things like that to cause trouble without a reason.  If I can show that I just sold a car or that I'm on my way to meet someone to buy a car I'm confident there wouldn't be an issue. 

I recognize that others might be in a different situation.  In a bigger city where someone is frequently pulled over for "driving while black" and authorities are less reasonable, the situation would be different.  I personally know the county sheriff and county prosecutor (not well but they would both recognize me and know I'm an upstanding citizen).  Neither of them would be interested hassling anyone without reason (whether they know them or not). 

[ericrugiero]

One additional thing for people to be aware of is that banks are required to report large transactions.  Anything over $10,000 (cash, check, wire, etc) is automatically reported (to prevent money laundering).  They are also supposed to report anything suspicious or if it look like someone is trying to game the system by withdrawing $8,000 two days in a row to stay below $10,000.  If you are doing something legitimate like buying a car you have nothing to worry about and will probably never know it was reported.  This doesn't really matter if you don't have anything to hide but it's just an interesting fact. 

[RWD]

... Note that there are instances in some states where traffic stops by police have led to large sums of cash being seized and the owner has to prove it was not something illegal.

This would be the least of my worries.  Buying/Selling a vehicle is totally legitimate and should be easy to prove.  You would get the money back after some small hassle.  Also, the odds of being searched are low unless you are doing something wrong.  I'm much more concerned about being robbed (or injured to while they are taking the money).

Have you not read much on civil forfeiture? It can take months or years to get the money back, if you win at all. Regardless of how legitimate it was that you had cash on you.

No I have not.  But, it's not something I'm worried about in my personal situation.  I've been pulled over for minor traffic violations but am generally law abiding and have never in my life been searched by authorities.  There is no reason for a search of my person or my vehicle to happen and I'm certainly not going to flaunting a stack of cash.  Authorities in my area aren't looking for things like that to cause trouble without a reason.  If I can show that I just sold a car or that I'm on my way to meet someone to buy a car I'm confident there wouldn't be an issue. 

I recognize that others might be in a different situation.  In a bigger city where someone is frequently pulled over for "driving while black" and authorities are less reasonable, the situation would be different.  I personally know the county sheriff and county prosecutor (not well but they would both recognize me and know I'm an upstanding citizen).  Neither of them would be interested hassling anyone without reason (whether they know them or not).

Yes, the odds of being pulled over and searched and cash seized are very low. And for you specifically your odds may be lower still than the average person. However, in the case that it were to happen you don't get the chance to defend yourself on the spot. Lots of cash = suspicious and they don't even have to charge you with any wrongdoing. They charge the money, simply for existing! But setting aside if you, personally, are willing to take that risk (and I have too, with ~$5k or so in cash) as long as we are recommending stuff in general in this thread it is a concern that should be noted. Especially since several people have suggested doing the transaction in a police parking lot I think the odds of the cops getting involved in your large cash transaction are much higher in that scenario.

[ericrugiero]

Especially since several people have suggested doing the transaction in a police parking lot I think the odds of the cops getting involved in your large cash transaction are much higher in that scenario.

Fair point.

edit:  I still wouldn't be particularly worried because a cop would have to be a real jerk to confiscate money obviously being used to buy a car.  You have multiple parties who can testify to the transaction as well as a car title and probably a receipt for a bank withdraw.