How Safe Is Bank Cheque? Selling Car

kashxpert on 07/06/2018 - 20:36
Last edited 14/06/2018 - 07:00

Hi Guys,

I am selling my car and interstate buyer is interested in purchasing it. He has already transferred me couple Ks to my bank account as a deposit and rest he said he will bring Bank Cheque.

My problem is he is coming over on Sunday and Monday is Public holiday. I won't be able to get to bank till Tuesday to settle it.

How safe are bank cheques?

What if buyer calls the bank and cancels Bank Cheque before I could cash it? What if buyer claims he lost the cheque and bank would cancel it? Where do I stand now?

It might all be okay, I am just nervous since the amount is over 35K.

I don't expect him to bring me 35K cash so Bank Cheques are the best options usually but what can I do to protect myself against any potential frauds?

UPDATE: Guy did come yesterday evening to pick up the car, he was very nice and provided me NAB bank cheque and a receipt of the cheque as well. I gave him a handwritten receipt of the sale mentioning sale was subject to bank cheque number ***** clearance.
I havent given him rego papers signed, I will post it to him when funds are clear. I think it's all fine.
Thank you so much for all the comments, really helped.

UPDATE 2: Cheque cleared all went well, PHEW! Thanks so much guys

Financial Car

Comments

    • Cluster on 07/06/2018 - 21:36
      +13

      Bank cheques are embossed with the issuing bank's stamp. Difficult to fake. Also cheques have micro printing on the rear and heat sensitive ink so unless you're dealing with someone using advanced technology good enough to print their own currency, you're pretty safe. The person receiving the cheque is of course going to take a photo of the driver's license too, right?

      Can a thief get a genuine cheque canceled by claiming to the bank that they lost it? That's the only real risk that I can see.

      • dcep on 07/06/2018 - 22:11
        -4

        so does OP know how does the genuine bank cheque looks like ?
        how does the stamp looks like?
        how does the micro printing looks like?
        how does the heat sensitive ink looks like?

        or do you know how it looks like?
        i can tell you i don't know how it looks like.

        you can take photo of his license all you can, but your car is gone.

        • Cluster on 07/06/2018 - 23:27
          +9

          The embossed stamp will have the issuing bank's details and date. Possible to fake? Difficult, yes, but it's not a case of printing a bank cheque yourself.

          The micro printing is greyscale and requires a magnifying glass to inspect. If it's missing or has been printed using a four colour process then the cheque is fake.

          The heat sensitive ink is exactly as it suggests: the ink disappears from the heat of fingers and reappears several seconds later.

          Believe it or not you're not the first person to wonder whether a bank cheque can be faked. I have purchased new cars twice using such cheques, and on both occasions the dealerships took the paper at face value without further checks.

          In regards to inspecting the driver's license, the thief now has to fake two pieces of documentation: the cheque, and the driver's license itself. Everyone is familiar with what a genuine driver's license looks like. Just open your wallet.

        • dcep on 08/06/2018 - 09:18
          +4

          @Cluster:

          so you reckon OP knows all the details to professionally vet it on the spot before the car is gone?

          "embossed stamp will have the issuing bank's details"

          "micro printing is greyscale and requires a magnifying glass to inspect. If it's missing or has been printed using a four colour process then the cheque is fake."

        • Cluster on 08/06/2018 - 17:17
          +2

          @phunkydude: You're the one suggesting the thief/scammer can just print up a bank cheque themselves and pass it off as the real thing. Unless the seller has never seen a bank cheque before they will have a good idea of what a genuine bank cheque looks like. A quick google search shows examples.

          And you didn't address the second important point: the thief needs to generate a fake driver's license as well because any car seller is going to ask for ID before letting a stranger test drive their car.

        • lostn on 08/06/2018 - 18:07

          @phunkydude: Take the buyer's license details. If he pulls something dodgy, go to the police.

        • HighAndDry on 08/06/2018 - 12:05
          +13

          As far a cheques go, a Bank Cheque is treated no different to a normal cheque issued by a bank

          This is so ridiculously wrong it's not funny.

  • SnoozeAndLose on 07/06/2018 - 20:51
    +17

    If it is a genuine buyer they can wait and settle in the bank.

    If you are nearly parramatta,NSW there is CBA open in the Westfield on sunday

    • ireadtermsofuse on 10/06/2018 - 20:06

      A bank open on a Sunday? Now I’ve heard everything

      • SnoozeAndLose on 10/06/2018 - 21:47

        http://lmgtfy.com/?q=cba+parramatta

        Hours:
        Sunday 10:30am–3:30pm
        Monday
        (Queen's Birthday)
        9:30am–4pm
        Hours might differ
        Tuesday 9:30am–4pm
        Wednesday 9:30am–4pm
        Thursday 9:30am–4pm
        Friday 9:30am–5pm
        Saturday 9:30am–3:30pm

  • jug123 on 07/06/2018 - 20:53
    +2

    Bank chq cant be cancelled and will ave your name on it. Theyre safe, after cash this is my preference

    • [Deactivated] on 07/06/2018 - 22:24
      +39

      Nah, you're wrong.
      Bank cheques can be cancelled, most bank will charge $25 to cancel one.

      This is the one fundamental fact that people misunderstand about bank cheques.

      • djkelly69 on 07/06/2018 - 23:17
        -8

        I think you will find you need to return the original cheque to them in order for them to cancel it.

        • JimmyF on 08/06/2018 - 00:19

          See my comment below (which was posted before Drew). it says you can cancel a LOST or STOLEN bank chq…. Pretty hard to return the chq then when cancelling.

        • djkelly69 on 08/06/2018 - 08:05
          -4

          @JimmyF: Have you ever actually tried to do this? They don't just let you cancel a bank cheque because you claim you lost it.

        • [Deactivated] on 08/06/2018 - 11:00
          +2

          @djkelly69:

          Except… They LITERALLY let you cancel them…..

        • [Deactivated] on 08/06/2018 - 11:01

          Nah, you don't.

          You're wrong.

        • djkelly69 on 08/06/2018 - 11:26

          @Drew22: As above - have you ever ACTUALLY tried to do it?

        • [Deactivated] on 08/06/2018 - 12:10

          @djkelly69:

          Just look it up on your banks website, you can cancel it.

        • HighAndDry on 08/06/2018 - 12:17
          +4

          @Drew22: That's a no then. Yes, you can cancel it, but only under certain conditions. You can't just cancel it at will, and in this case the bank won't cancel it because OP can show a legitimate transaction.

        • [Deactivated] on 08/06/2018 - 12:32

          @HighAndDry:
          Neither have you… Not so high and dry now, are you….

        • LFO on 08/06/2018 - 15:44
          +2

          @HighAndDry:

          A legitimate transaction with a "stolen" bank cheque. I.e. a mate buys a bank cheque to reported stolen on Monday or Tuesday once the goods are safe.
          Easy peasy my friend …

        • HighAndDry on 08/06/2018 - 17:30

          @LFO: Bank does trivial amount of investigation and refuses to cancel. I don't know about you, but I have enough trouble getting Banks to do stuff for me that they're supposed to do. Getting them to invalidly cancel a bank cheque? Not gonna happen.

        • HighAndDry on 08/06/2018 - 17:31
          +1

          @Drew22: "High and dry" is a bad thing. Just FYI - i.e. "to be left high and dry". You're probably thinking of "High and mighty" but that's not my username.

          In any case, yes, I've had to go through the process of cancelling bank cheques in the past - I work with them on a regular basis.

        • akyeeeahdude on 08/06/2018 - 21:45
          +2

          @djkelly69:
          You're so wrong. It's so easy to cancel one if needed.i cancelled one last year with CBa.

        • djkelly69 on 08/06/2018 - 22:32
          +1

          @Alister: Care to explain the circumstances?

        • [Deactivated] on 09/06/2018 - 01:27
          -4

          @HighAndDry:

          It's funny, but you do act like you're high and mighty…

          mic drop

        • Micko179 on 09/06/2018 - 15:32
          -3

          @Drew22:

          Yes, he's a fool who should change his name to HighAndMighty! My bet is, only thing he works with on a regular basis is Sausage, namely HIS!

        • akyeeeahdude on 12/06/2018 - 19:04

          @djkelly69:

          I was going to buy a car with it but then decided against it after it was issued.
          I then also misplaced the cheque. I attended a branch and they processed the cancellation.
          Happy days.

    • JimmyF on 07/06/2018 - 22:27
      +1

      they can be cancelled. Costs $25, can be done 24x7

      https://www.anz.com/internet-banking/help/contact-us/bank-ch…

      "To request an urgent stop payment on a lost or stolen bank cheque you have purchased via ANZ Internet Banking, please call the ANZ Internet Banking Helpdesk on 13 33 50 (International callers: +61 3 9683 8833) 24 hours a day, seven days a week."

      • HighAndDry on 08/06/2018 - 11:49
        +2

        The Bank will perform a lot of checks before cancelling a bank cheque, and they won't return the funds to the drawer of the cheque until they can confirm it's a legit cancellation. For all practical intents and purposes, Bank Cheques are as safe as cash.

        • doodo477 on 08/06/2018 - 16:54
          +3

          Yet, cash is legal tender and a Bank Cheque isn't legal tender. They're not equal and each have inherit risks.

        • [Deactivated] on 09/06/2018 - 10:31

          @doodo477: What about a cash cheque?

        • Micko179 on 09/06/2018 - 15:33
          -3

          Yet another retarded comment!

      • HighAndDry on 08/06/2018 - 12:01
        +5

        They can be cancelled. They certainly CANNOT be cancelled as easy as a normal cheque. Take your own advice.

  • sly on 07/06/2018 - 20:54
    -7

    Cash payment above $10k is banned!

    • Cluster on 07/06/2018 - 21:38
      +7

      Not before July 1 2019. And I wouldn't want to receive $35k in cash, or expect anyone to deliver it to me.

      • Gotchas on 08/06/2018 - 05:57
        -1

        Under the measure, transactions over the threshold will have to be made through electronic transfer or by cheque, but transactions with financial institutions or between individuals will not be affected.

        To the OP….

        They still can call and say bank check was lost and can be cancelled but you can stop it happening by proving to the bank the sale

        The only secure way is to go to buyers bank who withdraws cash and gives it to you. (They’ll have to give them notice) You might want to risk carrying funds out of bank or deposit it straight into your account at the same bank ( you might need to open up an account)

    • EightImmortals on 08/06/2018 - 06:19
      +2

      That draconian order only applies to businesses and not to personal transactions.

  • smuggler on 07/06/2018 - 21:40
    +2

    Get the sucker to deposit the cash into your bank.

    • macrocephalic on 09/06/2018 - 12:34
      +2

      So you expect the buyer to accept the burden that you, the seller, are not willing to take?

      • smuggler on 09/06/2018 - 12:36
        +1

        That's gotta be the stupidest thing i've ever heard.
        I'm the seller. You sell under my terms as long as they're not illegal. Have you never bought anything in your life?

        • macrocephalic on 09/06/2018 - 18:01

          So you think that a random on gumtree should just transfer $25k to a buyer on good faith?

        • smuggler on 10/06/2018 - 00:20

          @macrocephalic:

          Don't have anything against bank cheques, but I've only ever sold cars to people at my workplace and provided them with my business card. I have always asked for bank transfers.

  • Diji1 on 07/06/2018 - 22:00
    +2

    Insist on a bank to bank transfer. Why open yourself up to fraud being possible?

    • JimmyF on 07/06/2018 - 22:27

      as not all banks are instant……

      • ascorbic on 08/06/2018 - 00:10

        Have another read of the comment

        • JimmyF on 08/06/2018 - 00:15
          +1

          ???? bank to bank transfers is not instant for all banks yet. Really depends on the banks still.

          So question was

          Why open yourself up to fraud being possible?

          and the answer was

          as not all banks are instant……

          So bank to bank isn't the answer. Lots of 'faked' transfers around. Pretty common gumtree scam.

        • ascorbic on 08/06/2018 - 02:58
          -1

          @JimmyF: But the concern is that the cheque will be cancelled before being cashed on Tuesday. This issue can be avoided by asking for a bank transfer before the weekend, which would clear by Sunday even under the old payments platform (provided the transfer is done before Friday cutoff). However, now that I think about it a bit more, I'm not sure how willing the buyer would be on doing a transfer in advance, without physically having the car.

        • HighAndDry on 08/06/2018 - 12:02
          +1

          @ascorbic: It's not as simple as just "cancelling" a bank cheque. Jesus christ, this thread is really showing up how ignorant OzBargain is when it comes to actual knowledge about specific subjects.

        • [Deactivated] on 09/06/2018 - 01:30
          +1

          @HighAndDry:
          You're missing the point.

          It doesn't matter how hard or easy it is to cancel a bank cheque, that's not the point.

        • gimme on 09/06/2018 - 21:26
          +4

          @HighAndDry:

          Lol 90% of ozb are dumb shits with no common sense or life skills. 10% are really savvy and more than likely living it up. They're not the ones getting excited over dominos deals.

    • jacross on 08/06/2018 - 09:08
      +1

      I would personally walk away from that request. Bank cheques are standard and safe. Bank transfers are very risky. Someone insisting on that smells like a scammer to me. Perhaps if the car was in the carpark, everything had been signed, I had the keys in my hand, and I was physically more powerful than the seller I would do this. But then the seller has no motivation anyway because then I am the one who can screw them by bolting. If I don't have the car, they can screw me by getting me to transfer and then not handing over the car. Everything has risk and in my mind, someone who knows what a bank cheque is and is fine with a bank cheque is someone with a history of financial dealings and rational behaviour.

      If that's your standard and you can find someone to agree then great for all though. There's no moral element, just risk mitigation in mutually beneficial transactions.

    • HighAndDry on 08/06/2018 - 11:49

      No! A Bank cheque is safer than a bank-to-bank transfer.

    • kmanccr on 09/06/2018 - 00:16
      +3

      Why would the buyer open themselves up to the risk that you will run off with the money. Jeez. Bank Cheques should have your name on it and only you can deposit it. They are supposed to be almost equivalent to cash but it literally has your name on it so its way safer for all parties. Furthermore, when it is written the money is withdrawn from the senders account and held by the bank until it is deposited. The bank will honor it. Its perfectly safe.

  • jaackyy on 07/06/2018 - 22:06
    +3

    Maybe ask what bank he's getting the cheque from, and then contact that bank and ask them what are all the security measures to check if a bank cheque is genuine.
    Also, ask to see the guys bank statement, showing the $35,000 etc. being deducted.

    (As far as I know, the money has to be deducted for the bank to issue the bank cheques)

    • JimmyF on 07/06/2018 - 22:28
      -2

      on a sunday or a public holidays? Yeah not going to happen.

      • arislan on 09/06/2018 - 10:14

        Then don't do the transaction on a non-bank day. You're just grasping at straws. Do the deal on a weekday, insist the bank cheque is dated recent - ideal if same day, call the bank on the spot to verify before handing over keys. Ask for picture ID if possible. Just use common sense. If the buyer is giving all sorts of excuse, then walk away. Bank cheque is probably one of the safest way if you use common sense.

        Another method is to use some sort of escrow service, though I haven't use it for car transactions before.

        • JimmyF on 09/06/2018 - 10:57

          Then don't do the transaction on a non-bank day

          Why don't you bother reading the OP post? For those hard of reading the OP said

          My problem is he is coming over on Sunday and Monday is Public holiday

          So they are doing it on a non bank day.

          If the buyer is giving all sorts of excuse, then walk away

          Again read the OP post, the buyer isn't making excuses, they have to travel, hence the weekend pickup, and they wanted to pay by bank chq, OP is the one in a flap about it.

  • SPCTRE on 07/06/2018 - 22:33
    -3

    Heaps of people have been scam with bank checks recently.
    Gives check takes car, Checks bounces back and owners is careless.

    Idk how money check works because I don’t like dealing with it but when I seen about 1/week of the same scam happening recently, I would say deal in cash or tell them to wait till money clears into your account before you hand over the keys.

    • Cluster on 07/06/2018 - 23:38
      +5

      Bank cheques, or personal cheques? A bank cheque requires the money to be there to withdraw from a real bank account, so people can't just write one out without coverage. Can the thief cancel it after issuance? Sure, but then the victim's recourse route is much easier. The victim did check the driver's license details matched the bank cheque, right?

    • jacross on 08/06/2018 - 09:08

      Bank cheques?

    • HighAndDry on 08/06/2018 - 12:03
      +7

      Bank cheques don't bounce. This thread is using up all my downvotes…

      • c0balt on 08/06/2018 - 18:59

        They can, and do.

        https://www.nab.com.au/personal/help-and-guidance/personal-b…

        "If NAB is told that a bank cheque is stolen or lost and is satisfied that this is the case, NAB will not pay the cheque if it is presented for payment by a person who has no right to it."

        It's in OP's best interest to mitigate risks and just request an electronic funds transfer. You are giving horrible financial advice.

        • Binchicken22 on 08/06/2018 - 22:46
          +7

          I think you missed a key line in that quote, "NAB will not pay the cheque if it is presented for payment by a person who has no right to it."

          If OP received the cheque with his name on it and the issuer has received the goods i.e the car, he has every right to the cheque.

        • macrocephalic on 09/06/2018 - 12:37
          +1

          @brad1601: And a handwritten, signed note of sale, plus a photo of the buyer's licence, would be all the proof that the bank needs. It would be very hard to convince the bank to reverse a bank cheque when you have all the evidence to prove that it was used in a genuine transaction.

      • Mango Madness on 11/06/2018 - 10:07

        True. Bank cheques don't bounce (due to insufficient funds).

        I think the OP's concern around the "Here I paid you, now I go cancel the transfer"… it is still possible for a bank cheque to be cancelled or placed in suspense.

  • Quantumcat on 07/06/2018 - 22:34
    +2

    I would get him to come on Tuesday and transfer the cash at the bank.

    Failing that, get him to bring his passport and take a good quality photo of him holding the bank cheque and his passport open at the photo page (in case he claims it was lost). I don't know if this would let you get the cancellation reversed though. Maybe ask your bank what would happen if you received a bank cheque, but it was cancelled, and you have a photo of the person with ID and the bank cheque (indicating it was handed over willingly).

    • LFO on 08/06/2018 - 15:52
      -2

      If the cheque is reported as "stolen" no photo ID, blood sample, tissue biopsy or anything whatsoever will get the OP the money.

      • HighAndDry on 08/06/2018 - 15:54
        +4

        No… OP shows up to the bank with the signed Car rego transfer, showing that yes, the person who drew the cheque is the buyer, and yes, the amount on the transfer matches the amount on the cheque. That's it.

      • jacross on 09/06/2018 - 08:55

        No. You would have all the evidence needed to demonstrate you legitimately have the cheque I exchange for goods.

  • djkelly69 on 07/06/2018 - 23:22
    +4

    Bank cheques are used to settle (ie. exchange for the title to) $100 million plus properties every day by the banks themselves. It will be fine for your car.

    • [Deactivated] on 07/06/2018 - 23:41
      +7

      Settlement Agents are used to verify & manage the proceedings as disinterested third parties. Also, houses are easily recoverable if fraud has taken place as they are stationary - a car is not.

      • HighAndDry on 08/06/2018 - 15:56
        +9

        I can't believe this was upvoted +6. Bank Cheques are used to settle ALL SORTS of huge transactions, not just property purchases. I feel like I'm in crazy-land, because apparently no one knows what a bank cheque is or how they work.

        • c0balt on 08/06/2018 - 18:36
          +2

          No one wants to have to go through all the processes you tell people they can do if there's a problem with a bank cheque. They would much rather just do proper due diligence and request the balance paid via electronic transfer rather than wait on a cheque clearing.

          I've had the law on my side before when going to court. I would have much rather just never have got into the situation in the first place. You don't get that time back, or the stress. Also in the case of destitute people, you don't even get damages/recompense back.

          You seem to not realise this, that people are allowed to want what is most convenient and safest for them - which for the OP would be an electronic funds transfer.

  • [Deactivated] on 07/06/2018 - 23:47
    +9

    This scenario is dodgy as. The man has not driven the car but has delivered a deposit? - how can he guarantee he wants it? Getting a car from interstate is very inconvenient and would only occur if your car was exceedingly rare (which it isn't at that price) or if it is exceedingly cheap… and if you are selling that cheap, wouldn't you be better off holding for another purchaser? And if neither of those things apply ask yourself why on earth he would choose your car and not another locally.

    We need to use logic here.

    Never, EVER, allow control of an expensive item to leave your hands until full payment has cleared or the cash is in your hands.
    If he is keen enough to pay a deposit for a car he hasn't driven & cross state lines to get it, then have to arrange transfer of interstate plates/registration etc he can be prepared to wait until the cheque has cleared.

    • EightImmortals on 08/06/2018 - 06:22
      +6

      I sold a car of similar value to a NZ couple who were moving here. We spoke over phone and email and I met them at the airport when they arrived. They had the bank cheque ready to go on inspection and there were NO problems at all. Not everyone is a criminal and if you take copies of their identification etc it wouldn't be too hard for the cops to track them down.

      • Quantumcat on 08/06/2018 - 10:30
        +2

        The cops would not care. If it went pear-shaped you'd have to take them to small claims court.

        • macrocephalic on 09/06/2018 - 12:38

          Cops don't care about fraud now? Policing in Australia must have really gone down hill.

        • Quantumcat on 09/06/2018 - 14:31
          +2

          @macrocephalic: yes sadly

      • LFO on 08/06/2018 - 15:54

        And your car was worth … 5,000? 10,000? 3,000?

    • jacross on 08/06/2018 - 09:12
      +7

      I purchased a car interstate just a month ago. I live in a high cost area and in any case a larger sample size will likely lead to the best deal. For me the transport costs were worth it. I did also use a mobile vehicle inspection service.

      It's silly to suggest theres shenanigans because 'Why wouldn't they buy/sell local?'. That ignores the fundamental economic issue of liquidity.

      Bank cheques exist to solve the problem of personal cheques not being guaranteed money. It's standard behaviour and easily verifiable.

      You'd have to be an A grade moron to transfer $30k+ to someone and wait for them to clear before collecting the vehicle. That's increasing risk unnecessarily and one party has to bear it.

      Yes theres always risk in any transaction but intelligent people have basically solved this problem. Only kooks are hamstringing themselves via ignorance. There's reasonable risk reduction and then there is counterproductive foolishness.

      • LFO on 08/06/2018 - 15:39
        -1

        There's reasonable risk reduction and then there is counterproductive foolishness.

        You forgot about naiveness.

        The risk is high. And the transaction stinks. Next.

        • HighAndDry on 08/06/2018 - 15:40

          There's no risk*! You've shown by your comments here that you have literally no idea how bank cheques actually work.

          *Not literally 0%, but the risk is similar to the risk of receiving cash and it turning out to be counterfeit bills.

        • LFO on 08/06/2018 - 15:56

          @HighAndDry:
          As per your posts: bank cheques can be cancelled. Full stop. What part of that is to argue?

        • HighAndDry on 08/06/2018 - 15:57
          +5

          @LFO: Cancelled by the bank, not by the buyer. Cancelled only if the bank is satisfied that it was actually lost or stolen. Again - a Bank Cheque is issued by the bank, not by the individual. I mean, if you're worried the BANK is going to scam you, fine. But bank cheques can't be used by the buyer to scam you.

      • [Deactivated] on 10/06/2018 - 18:58

        "For me the transport costs were worth it."

        Read my post again, basically you are saying you got a bargain on the vehicle. My point was, yes a bargain is a legitimate reason to cross a border but selling a car at bargain is not a good reason for the SELLER to SELL to a person from interstate. If the price is that good to motivate another person to that extent it is likely a local person can be found to pay just as much.

        Note, I exclude rare/valuable items from this equation but at $35k and unless otherwise advised that isn't the case with this sale.

    • HighAndDry on 08/06/2018 - 12:04
      +3

      I've bought a car like this. You test drive it before handing the balance of the money over, when you go to pick up the car. But there's no other way - no one will hold a car for you to visit from interstate unless you've paid some form of deposit. And there's no point planning an interstate trip to pick up a car, if you can't be sure it'll still be there when you get there.

      • [Deactivated] on 10/06/2018 - 19:09
        -1

        And so imagine the car has some factors you don't like.. a rattle, pulling in a certain direction, mysteriously underpowered… & you've done your deposit?

        Or is the seller expected to be a nice guy and hand over the cash back to you despite missing out on other opportunities to sell? In which case what was the use of the deposit from the sellers point of view?

        Again, for anything but a rare or collectable item the costs & hassle involved in taking advantage of any arbitrage possibility (which in Australia will be limited) basically defeat the purpose, as such transactions like this are rare but the frequency offers such as this are made are not… because unwary consumers are often the target of thieves.

        E.g. Imagine when the buyer gets there the bank cheque handed over is issued from the "Bank of Saudi Arabia".. going to be racist & refuse after a person has come all that way?
        What if the pickup is in the early evening & light is not good and the Westpac cheque looks good, but was dated months ago (& may have been cancelled months ago), but this person has come all that way - & suddenly "needs to get back to their sick mother", what are you going to do?

        It is EASY to scam people with fake cheques and it does happen often.

        Another example, I get a bank cheque cut with the intent to commit fraud. I then claim that when I walked home from the bank in the evening I was robbed at knifepoint by a passer by. I make a police report (yes a crime, but so is the intent to commit fraud which happens all the time). Then armed with the police report I contact the bank & cancel the cheque.. & do you think the bank will refuse when the person has a police report?! Now I still have the cheque, the bank has ALREADY cancelled it, & I am going to be handed a vehicle on a public holiday, which the person has decided to do because they were advised by non-open minded & non-creative people on Ozbargain.

        The fact that the above scenario can easily be carried out, means that IT IS NOT SAFE to sell a car in this manner.
        Ok but now you say the person will still eventually get the money..however, the fraudulent purchaser has already on-sold the car for CASH, closed their bank accounts & left the country.

        In such a scenario the bank WILL NOT be forced to honour the cheque in any subsequent legal case. It will be obvious that fraud was intentionally committed so that the bank was right to cancel the cheque. The person on the hook for needing to honour the cheque is no longer reachable, the vehicle is gone, the seller is out of the cash & the vehicle.

        • wimphrel on 24/07/2022 - 22:07

          Or is the seller expected to be a nice guy and hand over the cash back to you despite missing out on other opportunities to sell?

          I'm actually in a similar situation - holding the car for someone flying in.
          I refused the deposit because I don't want to profit $1000 from someone because they changed their minds: All I'm doing is sitting on my arse & uploading photos to the internet to attract buyers, it's not that much of an inconvenience to hold it for a few days for them.
          I will definitely find another buyer in this market.

          The amount of 2nd hand car sellers I've met who've refuse to accept a deposit when I want their vehicle shows how many nice ppl there are out there.

          I'm taking a bank cheque…. so I'll definitely be verifying their license online via app & taking a photo of it.
          I don't expect them to handle that much cash, and I think thermal ink is on similar levels of difficulty as printing on plastic.

          • wimphrel on 27/07/2022 - 17:35

            @wimphrel: So I know I'm going to get a CBA bank cheque for my sale:
            I called up CBA and ask them the security on their bank cheques to help verify its authenticity. Here's what they replied with:

            • Should be a watermark - when held up to light, you can see a lock and key
            • Mandatory text: See reverse of check for security details
            • Signature line when looked under magnification will say "Commonwealth Bank of Australia"
            • UV light should reveal a fluorescent pattern (assistant couldn't tell me what pattern is from their notes)
            • 7 CBA logos printed in thermal ink on the back
            • CBA logo on the front of the cheque should be dull -> as toner tends to be shiny.

            I guess this explains why the banks charge $10-20 to issue one of these :P.

  • spal on 08/06/2018 - 04:56
    +20

    Frist, bank cheques are guaranteed by the issuing bank to the amount shown. Even if the buyer issues a stop payment, if you have sufficient evidence that the cheque wasn’t stolen you should receive the funds.
    I would suggest multiple steps to protect yourself:
    1. Find out which bank he is getting a cheque from. Go to any branch of the same bank and get a cheque issued and ask the staff to explain you the security features and the stop payment process.
    2. If you already have some information on the buyer look them up on social media. You may get some comfort if you see their social life, long term profiles, friends, work, families,etc.
    3. On the day of sale, photocopy both your and his licence on a plain paper and write out a sale deed cum receipt. Make sure that you include the cash deposit and the bank cheque including its number.
    4. Ask the buyer to bring along two recent bills showing his address. You could do that later too (most people have online utilities accounts).

    If, all of this doesn’t protect you or you don’t have sufficient comfort then selling to a dealer for a few thousands less is your best bet. At least you would have most of your money in your pocket. Although, you have now accepted a deposit, so the car belongs to the buyer pending payment of the remaining amount, you can’t go back on the contract.

    Sorry, I suggested such pedantic process only because the money involved. It is a lot of money to me. You may also want to check, if your car insurance will cover you as theft. Although, I doubt it, because technically you are handing over the control of your car willingly.

  • jacross on 08/06/2018 - 08:38
    +16

    They've transferred a couple of grand into your account. Theyre the ones taking a massive leap of faith. You can screw them much easier than they can screw you with a bank cheque.

    Bank cheques are standard. If some people here want to do weird 'let's go to the bank together' demands that is their right but I personally don't have time for kooks.

    • ipiok on 08/06/2018 - 09:06
      -1

      How is "let's go to the bank together" being weird? Why should the seller take a "leap of faith", their the ones with the item not the other way around.

    • macrocephalic on 09/06/2018 - 12:43

      If the buyer was shady then I might be inclined to meet them at a bank, and cash the bank cheque with them present before handing over the keys. But, this buyer has already paid a sizeable deposit and seems to be taking the safest route possible (a bank cheque).

    • [Deactivated] on 10/06/2018 - 19:14

      Read my example above and tell me how you would end up with your money. You would not get it from the bank… otherwise organised crews could run the scam over and over to defraud the bank.

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