Cheque from RAC; wait for it to clear?

CheeseBeans on 27/01/2022 - 18:29
Last edited 27/01/2022 - 18:40

I'm selling a car and have a prospective buyer (well, agreed on price and he's had his finance approved).

The buyer has finance via RAC, and they are issuing him a cheque that he will provide to me.

I called RAC and they have stated if I call them with the cheque number and amount they can confirm it was in fact issued and the date it was issued on. They of course can't guarantee it isn't a copy of the genuine cheque (I guess, technically, it's also possible he could say it was lost or stolen and try put a stop on it).

Question is, would you accept this as cash equivalent (i.e. let him drive the car away), or insist on banking the cheque and waiting for it to be cleared prior to transferring and handing over the car?

A personal cheque I obviously would not accept until it had cleared in full. Asides from the possibility of counterfeit RAC indicated the cheque was "as good as their company", more or less.

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Comments

  • MS Paint on 27/01/2022 - 18:55
    +1

    Treat as cash if cheque is genuine.

    I called RAC and they have stated if I call them with the cheque number and amount they can confirm it was in fact issued and the date it was issued on

    Do this if you have any doubts about the cheque.

  • bobbified on 27/01/2022 - 18:57

    I think that's as close to it being cash as it can be. Especially since you can call RACV to confirm (find the RACV number and call yourself to make sure it is RAC that you're calling - not a number supplied by the buyer).

    Unfortunately, there's no risk-free way to do this stuff - even actual cash still comes with it's risks - it could be counterfeit.

    • pharkurnell on 27/01/2022 - 19:11
      +1

      Unfortunately, there's no risk-free way to do this stuff

      Sad but true… you'd think by now there would be a foolproof way to sell things of great value

      • CheeseBeans on 27/01/2022 - 19:37

        Generally I'd prefer OSKO, fast and if I can see it as available in my bank account I can have a reasonable degree of confidence it's real.

        Unfortunately they're providing cheque, which is a pain for other reasons as my bank only has a single branch in the CBD and I have to go there during work to cash it.

  • Ocker on 27/01/2022 - 19:10

    Reckon you are jumping at shadows - nothing in life is risk free

    • CheeseBeans on 27/01/2022 - 19:40

      Yeah maybe, though I always try to be careful buying and selling used cars, and doubly so with cheques. No different if I received remittance advice or cash, I would do what I reasonably could to verify it is genuine.

  • Hithere on 27/01/2022 - 19:20

    It'll only take a few days for the cheque to clear.

    Tell the buyer to wait if you have any doubts. Better safe than sorry.

    • CheeseBeans on 27/01/2022 - 19:48

      Yep. I had a chat to the buyer and he seems pretty understanding and is also surprised they've gone cheque. I'll get it and make a judgment call. He doesn't seem to mind waiting, but if I'm comfortable with it and RAC can verify it on the spot I don't want to be a dick either

  • Drakesy on 27/01/2022 - 19:38

    Why doesn't RAC just deposit the money into his account which he then transfers through to you?

    Just wondering, or is this the standard finance procedure?

    • CheeseBeans on 27/01/2022 - 19:38

      They use both cheque and bank deposit.

      I can't comment on why they have used cheque in this situation, but it is certainly not abnormal

    • MS Paint on 27/01/2022 - 20:15

      RAC would typically transfer the funds into the sellers account after discussion with them. It is a cheque addressed to seller, in this case, so the buyer doesn't use the funds for something else (eg drugs). The car is most likely used as security against the loan.

  • pegaxs on 27/01/2022 - 20:03
    +3

    If it isn't cash, EFT or bank cheque, "Yeah, you can come back when it clears, champ."

  • commoncents on 27/01/2022 - 21:40
    +1

    I had the exact same experience recently and was worried for the same reason. I rang the RAA (Adelaide) and checked the buyers details with them as well as the cheque number. They said to me that they are paying for the car right, not the person you handing the car to, so if there are any issues (which the bank will spot usually straight away) you just call them and they cancel the cheque and re-issue you a new one (and go after their client if somehow they banked the original). She said they had never experienced a problem with issuing cheques. It does take a couple of days to clear too (ie not a bank cheque) just so you know

    • CheeseBeans on 28/01/2022 - 13:25

      Ah that's really good to know, thanks.

      I'll ask him to come in business hours. If I can verify the cheque then good to go I guess. If not, have to wait

  • Kranbone on 28/01/2022 - 00:00

    Buyer can collect car when payment clears.

  • apple2016 on 28/01/2022 - 00:21

    I guess, technically, it's also possible he could say it was lost or stolen and try put a stop on it

    The buyer cant stop the cheque as its not issed by buyer. Its issued by RAC. RAC can stop or cancel it. But this is unlikely. Depends on how much you trust RAC.

  • Xistn on 28/01/2022 - 07:57

    Hand it over, I'll check if it's legit or not wink wink..

  • oscargamer on 28/01/2022 - 10:11
    -1

    Do not do anything until cheque clears.

    Once cheque clears - good to go.

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