I'm interested in buying a car on Facebook and was wondering what is the best way to pay for it? Are bank cheques the safest way? What happens if the seller doesn't accept bank cheque due to risk of it bouncing? What is the best way to seal the deal and nobody ends up being ripped off?
Best Way to Pay for Car on Facebook
BluebirdV on 28/04/2023 - 20:23
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Comprehensive insurance second
It's cheaper to post on Ozbargain than get it
If you present a bank cheque from an Australian bank it won’t bounce
A bank cheque won't bounce, that's why you get one. Bank cheques are drawn from the bank's own funds, not out of one of your accounts. Banks are the most profitable businesses in Australia, but even if they were struggling there's no way that any Australian government would survive 1 in 5 people losing their money in a bank collapse without a bail out.
Until you find out the bank cheque was fake
That's possible?
NO WAY!!!!!
What a time to be alive!
You do realise that people can also fake cash too, yeah?
Such a stupid comment and just more FUD.
If you go to the bank with the buyer and get them to draw up a bank cheque while you are standing there… it’s pretty hard to fake.
You do realise that people can also fake cash too, yeah?
This is pretty dumb the skill and effort required to counterfeit $10,000 of Australian cash is magnitudes higher thank a bank cheque. If you are able to counterfeit it, you wouldn't be wasting your time buying used cars.
If you go to the bank with the buyer and get them to draw up a bank cheque while you are standing there… it’s pretty hard to fake.
Bank cheques can be cancelled.
Bank cheques can be cancelled.
Yeah, nah, not just as dismissively as that.
If you take a bank cheque directly from the teller and it has your name on it and you then present it to your own bank and deposit it, it isn't getting cancelled. Full stop.
If you do manage to initiate cancelling it (without presenting the cheque back to them), it can take weeks or months for the bank to actually refund you as they need to do an investigation (as it is the banks money you are trying to cancel, not yours). If, in that time, the named person on the bank cheque deposits the cheque, the bank will honour it and possibly pass your details onto police for fraud.
So much ignorance and bullshit about bank cheques goes on in this forum.
Don't you mean 'bail in'?
Bail outs are so 2008.
How much are we talking? Under $10k = cash. Other options are bank cheque or instant transfer (osko) or go visit a bank branch and make a payment to their account.
Check with the seller what they’d prefer.
I’ve bought and sold via instant transfer both times well into 5 figures. Buying, by the time my screen had refreshed the seller had funds in their account. Selling took a couple of minutes for funds to appear in my account. Check with your bank for any payment delays or transfer limits before you organise it’s the seller. Check with the seller wether they’ve got internet banking and there is mobile reception where you do the exchange.
About $16,000.
doesn't accept bank cheque due to risk of it bouncing?
Then you don't understand how bank cheques work. Bank cheques don't bounce.
Have you tried asking the seller? Are we talking $5k or $50k??
The banks themselves say bank cheques are not "as good as cash" and need to clear (typically the same amount of time as for a personal cheque).
"The cheque was fraudulent and the driver's licence … was a fake," Dixon says., Oct 2016:
Detective Inspector Scott Whyte, investigation co-ordinator, motor vehicle theft and rebirthing in the property crime squad, says his unit is investigating Dixon's case and five others where the same scam has been employed.
"Just because you've got the bank cheque in your hand, it hasn't been cleared by the bank, so don't presume that you are just going to walk in, put it in the bank and that the money is there," Whyte says. "The bank will still take some time to clear the cheque, so make arrangements to deliver the car after the cheque has been cleared."https://www.policenews.act.gov.au/news/media-releases/police…
ACT Policing is investigating several reports of fraudulent bank cheques used in the private sale of vehicles this month [28 July 2017].
Police have so far received three reports, and suspect there may be more incidences not yet reported to police. In two of these incidents, the sellers have accepted the cheques, which have later bounced. In the third incident, the seller has refused to accept the cheque and contacted police.Chelsea Mordialloc Mentone News, March 2022:
Police arrested a 26-year-old Edithvale man…Police say that the alleged offender also used a fraudulent bank cheque to purchase a “luxury vehicle” for $28,000.
A: I didn’t say it was the same as cash. In some ways it is safer than cash.
B: I didn’t say it would clear instantly.
C: Genuine bank cheques don’t bounce.
D: A fraudulent bank cheque works the same as “counterfeit money”.You are trying to discredit bank cheques and then post three articles about fake bank cheques. These are obviously not bank cheques, but counterfeit cheques. The exact same example could be made of counterfeit cash, so your examples above are stupid and pointless and nothing but an attempt to sow FUD.
The best, and safest way to use a bank cheque is to drive to the buyers bank, go to the teller together, get a bank cheque drawn up while you stand there watching, have the teller hand it to you directly and go straight to your bank and deposit it.
The other really safe way to use bank cheques is, accept the cheque, tell the buyer to come back in a few days once it has cleared. A genuine buyer will know it takes a few days to clear, a scammer will kick off like it’s you trying to scam them.
The other really safe way to use bank cheques is, accept the cheque,
So then what protection does the buyer have?
Also the bank cheque can be cancelled… you can't cancel cash
Also the bank cheque can be cancelled…
So much misinformation bullshit.
Again, as outlined above… you cant just "cancel a bank cheque". It is a much more complicated process than just walking back into the bank and saying "oh, can I cancel that bank cheque???" If the bank cheque gets presented by the person named on the bank cheque, the bank will honour it, and if you tried to commit fraud by cancelling the cheque and it gets cashed by the named recipient, you could find that you may have some explaining to the bank and quite possibly the police.
So then what protection does the buyer have?
What protections do you have when you hand over $50,000 in cash for a car and the guy just walks off with it? Such a stupid comparison to make. Cash offers LESS protections. At least a bank cheque can only be cashed by the nominted person on the cheque. Cant write your name on cash and expect it to work.
Have you never purchased a car before? Do you understand the concept of due diligence?
@pegaxs: As much as it pains me to admit @deme is correct in that there is zero counter party risk with cash.
OP do the exchange and transfer at ServiceNSW or in a Bank if you are concerned about theft
@[Deactivated]: deme is NOT correct. They are so far the other side of wrong, it's ludicrous. While some elements of what they are saying is correct, they are manipulating or omitting details in a way to make it incorrect.
There is always a risk with cash also, and this includes being rolled for your cash. Are you being set up to be rolled? Is someone using stolen money? Is someone laundering money? Are there counterfeit notes in the bundle. Cash cant be tracked if something goes wrong or claims they didn't get all of it. If you give the seller cash and THEY get rolled on their way to their bank, you think they are still just going to say "Oh well, my bad, here are the keys anyway…"
OP do the exchange and transfer at
ServiceNSW or ina Bank if you are concernedabout theftYou mean, the EXACT same thing that I have said above numerous times with regards to bank cheques? Do it AT THE BANK, take DIRECTLY from the teller, take DIRECTLY to your own bank and deposit it?
The difference being, if you get jumped or robbed, a bank cheque has your name on it, cash doesn't. Can't "cancel" cash…
Depositing MORE than $10,000 in cash also triggers an AUSTRAC event. $16,000 (OP's purchase amount) is WAY over that limit and would require quite a bit of time to deposit in one go.
Also, most banks only give out $50's, so $16,000 is 320 $50 notes. Or 32 bundles of 10 notes, or 16 bundles of $1000. A bank may also not have that amount of cash on hand and it would have to be ordered in, taking a few days. You know what would NOT take a few days to organise and you can deposit immediately without all the AUSTRAC bullshit? It would even come with your name embossed on it.
So much ignorance here that it still baffles me how some people even survive doing basic day to day tasks…
@pegaxs: Yeah Nah,
If they don't have the cash then I would sell it to the next person - My car My preference - seller sets the terms.
I can't understand why you are so invested in this or denigrating - if you must pay by bank check or transfer then find a willing seller or buy at a dealer. Fixed!Is someone using stolen money? Is someone laundering money?
Currency is fungible and has no counterparty risk when spent with an unrelated reasonable third party is my understanding.
really safe way to use bank cheques is, accept the cheque, tell the buyer to come back in a few days once it has cleared.
Yup, just as safe as accepting a personal cheque in that case.
$16,000.
And what did the seller say when you asked them how they preferred to be paid?
I missed out. Someone else got in first.
really high interest finance
A scam buyer can report a bank cheque as stolen or lost, so yeah, they can bounce
That's very hard to do.. and he's buying it anyway..
It’s not hard to cancel a ‘lost’ cheque. I’ve done it when a real estate ‘lost’ our deposit cheque. Back to the bank, pay the fee, got a replacement. It’s probably harder to cancel one completely and not have it redrawn for the same payee
it would need to be done before the cheque is presented, so if you receive a bank cheque, get it to a bank ASAP.
It’s probably harder to cancel one completely…
THIS is the big point here. Cancel and re-issues is NOT the same as an outright cancel. And even if the bank does "outright" cancel it and then their cheque gets presented by the person who is nominated on the bank cheque, the bank is going to ream you with a barbwire stick and hand it over to their lawyers and the police.
OP is the buyer… and it’s been done to death over and over and over on this forum, if the bank cheque is presented into the account of the person named on the bank cheque, a bank will not cancel a bank cheque.
Also, if you try and cancel a bank cheque, you will either need to hand them back the cheque (didn’t end up buying the car, so didn’t use it) or you have to wait weeks or months for the bank to investigate, and if in that time, the person named on the bank cheque deposited it, guess what? They won’t cancel your cheque.
OP is the buyer… and it’s been done to death over and over and over on this forum
And OP has been on the forums since dinosaurs roamed the earth yet still posted
bitcoin
What happens if the seller doesn't accept bank cheque due to risk of it bouncing?
Then you don't buy the car. Ask them what they accept before you go there.
Bank cheques can be forged. Only a dummy would accept it nowadays .
Cash only .So can cash… FFS.
Oh yeah it's definitely the same effort required to forge a bank cheque as it is cash https://banknotes.rba.gov.au/counterfeit-detection/list-of-s…
just stupid
Wtf is wrong with cash?
The bank may need a day's notice or so depending on the amount, but cash.Have you done a ppsr, got pre mechanic inspection ? I don't understand how you don't know how to pay for a car.. if it's on Facebook it's probably a cheapie so use cash if it's more bankcheque
:D
Make sure your reflection looks good in the mirrors before driving the car away as you won’t be able to refund/exchange it
Just hand me the cash and I'll go buy it for you FFS. This isn't rocket surgery.
This is what I dont get… why not just ask the seller how they want to get paid and then just do that, or ask here "Seller wants me to pay in bananas, is this a safe way to conduct a transaction?"
As long as you watch out for gorillas bananas are safe. You need to bank them quickly though. It’s only a matter of hours before your green bananas are only suitable for baking.
Useful post, I’m interested in selling a car on fb marketplace
16K isnt big amount. Just take the cash. I hope no one now asks what if the notes are fake : )
Bank Cheque is the safest.
Can a seller insist the bank cheque be deposited successfully first before signing over the papers?
For example both of you at the bank teller, if successful then papers are signed keys pass hand?
Selling car today. Tried instant transfer - refreshed account so many times while they signed the papers my finger got sore. They ended up leaving and will pick up tomorrow after payment clears. Fortunately they live close by and happy for me to wait for payment to clear.
If going instant, be prepared for issues.
First time payments to a new payee may be held up for up to 24 hours as a security measure. For my bank this seems to apply only to transfers >$500.
Checking the conditions in a sales contract with local Toyota dealer:
Bank Cheque to be presented four days before delivery as BC's still require clearance.
EFT transfers to be made three days before delivery to ensure funds are cleared and available.Bank Cheque to be presented four days before delivery as BC's still require clearance.
Your Toyota dealer is weird. Mine was happy to accept my bank cheque the same day I collected the car. EFT was 48 hours before delivery day.
cash.
But first PPSR