Bank Cheques - Are they safe?

[AU Mont]

Originally Posted by cs123

The risk is then with the buyer. You could abscond with the money and car and is probably a lot more common than a bank cheque being denied.

thats my point.

if they dont want to wait for funds to clear, then pay cash !!

why put the seller through 3 days of waiting for funds to clear & pay via cheque, yet expect to take the car immediately?

[cs123]

Originally Posted by AU Mont

thats my point.

if they dont want to wait for funds to clear, then pay cash !!

why put the seller through 3 days of waiting for funds to clear & pay via cheque, yet expect to take the car immediately?

Cash isn't appropriate for a large transaction.

[AU Mont]

so everything has to be convenient for the buyer, not the seller? Your right, bank cheque IS the way to go for large transactions, but they should be made to wait if they want to pay with paper.

regardless, i think the OP is crazy for wanting personally deliver his car to a complete stranger in another state before any money has changed hands.

[T3ts50]

Originally Posted by AU Mont

thats just a stupid comment, why bother?

whats wrong with waiting till the cheque clears & funds become available to you before letting the car go? Isnt that what this thread is about anyway? No-one is saying dont use bank cheques, just dont let the property go until its converted into cash...

So when someone purchases a house, aren't bank cheques handed over at settlement? Does the vendor hold onto the property until the cheque has cleared?

Car yards also accept bank cheques, so I really don't see the big issue.

[FGII-XR6]

cash is always appropriate for any transactions, some may find it inconvenient but never is it inappropriate.

Originally Posted by cs123

Cash isn't appropriate for a large transaction.

[AU Mont]

Originally Posted by T3ts50

So when someone purchases a house, aren't bank cheques handed over at settlement? Does the vendor hold onto the property until the cheque has cleared?

Car yards also accept bank cheques, so I really don't see the big issue.

rightio, go buy a new lounge suite, fridge/freezer & flash new 80" TV from harvey norman, and try loading everything into your trailer straight after youve handed over your bank cheque

see how far you get?

[Stefan]

Originally Posted by AU Mont

whats wrong with waiting till the cheque clears & funds become available to you before letting the car go? Isnt that what this thread is about anyway? No-one is saying dont use bank cheques, just dont let the property go until its converted into cash...

How do I know that you have not already accepted 5 cheques for the car?

The funds could have cleared and you could claim they didn't.

You can then start to avoid phone calls

You could be telling me you're too busy to meet so I can't pick up the car

I eventually go to the police and they tell me it's a civil matter that they can't do anything about it.

I go the bank they say they can't do anything as it was a bank cheque and I gave it to the guy that the check was made out too, end of story for them.

I go around to your house and again you claim the cheques is not clear.

Why should I take the risk as the buyer.

Why does a car dealer accept a bank cheque for $70K and let me roll out in a brand new FPV 5 minutes later?

[AU Mont]

Originally Posted by Stefan

How do I know that you have not already accepted 5 cheques for the car?

The funds could have cleared and you could claim they didn't.

You can then start to avoid phone calls

You could be telling me you're too busy to meet so I can't pick up the car

I eventually go to the police and they tell me it's a civil matter that they can't do anything about it.

I go the bank they say they can't do anything as it was a bank cheque and I gave it to the guy that the check was made out too, end of story for them.

I go around to your house and again you claim the cheques is not clear.

Why should I take the risk as the buyer

Stefan why stop there? If we're going off on that tangent, we could ask ........." what car?"........ "what bank cheque".......... "are we in the matrix?"

Why does a car dealer accept a bank cheque for $70K and let me roll out in a brand new FPV 5 minutes later?

again, just because joe blow from down the road accepts bank cheque as absolute instant payment, does not mean its an universally accepted form of cash!!

my harvey norman example shows how cheques are generally not accepted as cash. Being a vehicle purchase doesnt change the way the cheque is handled.

Enough of my point of view, i think theres nothing else i can possibly say?

[The Wanderer]

Originally Posted by naddis01

Ok guys, I am selling my car at the moment and I have someone interested in it that lives in Melbourne (about 450km away from me). As part of the deal I said I would deliver it to them. I would like to make the return trip in one day on a weekend so payment becomes an issue. Obviously they don't want to hand over thousands of dollars to a stranger before seeing the car, so what are my options?

I have always thought that bank cheques are a safe form of payment however I have read on here a couple of times that this may not be correct. I thought the bank had to guarantee that the funds are available. Is this the case? Otherwise what are my options other than cash keeping in mind that the transaction may be done when the banks are closed?

Bank cheques are not safe in general terms ie they can be stopped by the issueing bank upon request by the purchaser - banks do not guarantee that the funds are available-
if you want a no risk sale -
remember this anecdote -

in god we trust - all others pay cash
in summary make the purchaser pay cash or pay funds into your bank a/c before you hand over the car
regards
the wanderer

[cs123]

Originally Posted by AU Mont

my harvey norman example shows how cheques are generally not accepted as cash. Being a vehicle purchase doesnt change the way the cheque is handled.

Enough of my point of view, i think theres nothing else i can possibly say?

That is not a workable example. Merchant have EFTPOS which transfers the money from you to them. A bank cheque would be more expensive and more time consuming so doesn't make sense in this day and age. Before EFTPOS cheques were common.

A private seller doesn't have EFTPOS, so you are back to wire transfer, Bank Cheque or cash as options.

[tweeked]

I think there is more risk in someone you dont know, and possibly anyone who the buyer knows, being aware that you have eleventy thousand dollars in cash on you.

Goes wrong with a bank cheque, you make an insurance claim on your stolen car. Goes wrong with cash and someone bangs you on the head and takes the money - try getting that back, and lets hope they don't hit you too hard on the head.

Bank cheque and valid car insurance all the way for me.

[Stefan]

Originally Posted by The Wanderer

banks do not guarantee that the funds are available-

You have no idea.

Of course they do, a bank cheques is a cheque drawing on the Bank's Funds. So unless the Bank goes broke after the bank cheque is issued the funds are available.

[ratter]

I would not release a car if paid for by bank cheque until such a time it has cleared

[Smoke Pursuit]

Originally Posted by Crazy Dazz

But NOT in the same way that a Personal or institutional cheque can.
A personal cheque is drawn against their personal account. They can put a stop on the cheque or simply not have enough money in their account, in which case the bank will dishonour the cheque. NO crime has been committed unless you can prove that they set out to defraud you. What you have is a promise to pay, and it becomes a contractual/civil manner.

A bank cheque has ALREADY been paid for by the purchaser and is drawn on the banks funds. The money is ALREADY gone from their account, so they cannot get it back. If they go back to the bank and claim to have lost the cheque, or that it got stolen from their handbag, etc, there is a convoluted process to go through, which partly involves waiting to see if the bank cheque is presented and if so was it by the valid drawee. A Bank Cheque is a promise to pay you from the BANK’S OWN funds. If you are the valid drawee and present the bank cheque in a timely manner, the bank will NOT dishonour the cheque.
Modern scanners and colour laser printers have OF COURSE given rise to an increase in people forging Bank Cheques, and I would be dubious about accepting a bank cheque for a TV or some other item I was selling on Gumtree. But assuming your car is insured, you have nothing to fear from criminal activity (except depending on your insurer loss of your excess.) A person who gives you a forged bank cheque commits a crime, no ifs, no buts, no maybes. If they want to steal your car for parts or to rebirth it in another state, it is far easier for them to yank it from your driveway, than to leave the police with a nice paper trail to follow.

The transaction of selling or buying a car involves at least some “good faith.” The buyer isn’t going to keep a large wad of cash at home, just in case you don’t turn up but instead send some of your bikie mates for a visit. Nor will they deposit cleared funds into your account, just in case you then yank back the transfer papers.

If you accept a big wad of cash for the car, how do you know it’s not counterfeit? (Something that is much harder to pin on the purchaser than a forged bank cheque.)
How do you know you want be followed home and mugged for the cash?
Or that the cops won’t nab you and take your money because you unwittingly sold your car to a drug dealer?

It pays to be cautious, and the OP has done the right thing asking the question, but going through life paranoid that everybody will rip you off at a moment’s notice, is no way to live.

Nab did a bank cheque for me last week for $50,000 and the funds did not leave my account. I cancelled it 3 days later because I reneged on what I was buying.

I have sold cars by bank cheque several times. It does not worry me if they cancel it because I will report it stolen and then claim on insurance.

I always make sure I copy their licence before they take possession.

[xxx000]

Originally Posted by Stefan

You have no idea.

Of course they do, a bank cheques is a cheque drawing on the Bank's Funds. So unless the Bank goes broke after the bank cheque is issued the funds are available.

wrong

[cs123]

Originally Posted by DASH GT

Nab did a bank cheque for me last week for $50,000 and the funds did not leave my account. I cancelled it 3 days later because I reneged on what I was buying.

Last time I did a Bank cheque with NAB the money left my account immediately.

[ratter]

but they do not pass it on for a few days

[LG17]

Bank cheques are as safe as houses...


















in earthquake zones.

[FAT245]

When we had our shop,

We used to just call up the bank who the cheque was issued by and we would confirm that the cheque is actually Genuine and that the Funds are avaliable.

They would release the information to us. we used to get Fake bank cheques back in the day to purchase a plasma TV or Home theater Setup and a Simple phone call was all that was required.

[flappist]

Forget about all of the problem, it is very simple.

The buyer who has the funds will have it either in his bank or a bank cheque.

You are going to his town so pick him up and take him to his branch of his bank.

In the bank if there is a cheque return it and have it cancelled and then have him direct depost the money into your bank and give you a copy of the reciept while you are standing next to him.

[EASYBOSS]

Originally Posted by flappist

Forget about all of the problem, it is very simple.

The buyer who has the funds will have it either in his bank or a bank cheque.

You are going to his town so pick him up and take him to his branch of his bank.

In the bank if there is a cheque return it and have it cancelled and then have him direct depost the money into your bank and give you a copy of the reciept while you are standing next to him.

Did you read the entire thread, its a weekend handover

Anyway, I recon this thread should be done, to many experts and lots of things repeated, how much can be said.

Good luck to the seller, the OP

[cortinagt]

To the OP. Money transfer is only part of your problem. I would not be delivering the car without a significant deposit first (enough to cover for your time and out of pocket expenses).

To all the paranoid people who will wait till the Bank Cheque clears. There are many people who simply won't buy your car based on that.

It's topics like this that are always interesting to read but forums are possibly your worse source of information. Ring a bank, ring your insurance company, get names of the people you spoke to and base you decision on facts.

OP - Goodluck, but I would rather take a few less $$ for an easy local sale.

[GasoLane]

Originally Posted by Crazy Dazz

NB: TOTALLY different to a personal cheque. NEVER accept one of those.

What about one that comes with a set of Bilsteins ?

[FGII-XR6]

part with the car for a dud cheque and good luck on your insurance you sold the car and your insurance is void from that moment. Insurance will not cover fraud if you sign the car over you are turning title over to the buyer regardless of if the payment clears

Originally Posted by tweeked

I think there is more risk in someone you dont know, and possibly anyone who the buyer knows, being aware that you have eleventy thousand dollars in cash on you.

Goes wrong with a bank cheque, you make an insurance claim on your stolen car. Goes wrong with cash and someone bangs you on the head and takes the money - try getting that back, and lets hope they don't hit you too hard on the head.

Bank cheque and valid car insurance all the way for me.

[MITCHAY]

There's risk in anything and as far as bank cheques go I would be happy with that. They are incredibly hard to forge or obtain fraudulently.

[flappist]

Originally Posted by EASYBOSS

Did you read the entire thread, its a weekend handover

Anyway, I recon this thread should be done, to many experts and lots of things repeated, how much can be said.

Good luck to the seller, the OP

Yes I did. It seems paranioa rules so just go there on a week day and if he is a work pick him up at lunch time.

Otherwise get him to DD the money to you before you leave for the hand over.

[Franco Cozzo]

I paid for 2 cars via bank cheque, the money came out of my account right away with Westpac and NAB.

[ratter]

yes, the money comes out straight away, but does not go into the other persons account until 3 days after it is presented, the bank holds it and makes interests on it but it can be canceled.

[Smoke Pursuit]

People won't transfer without the goods...

[Brendo_GSUte]

Bank cheques wont get issued unless the funds are there.

If the BC is a fraud it will be easy to spot as you can just quote off the serial ID at the bottom to a teller from said bank and they will say yes thats in our system it is from Bill Smiths account. Check drivers licence of bill smith confirm then sign over car.

As for the insurance yes it will be covered as you have been defrauded/stolen from. It is usually easy to let them know whats going on and they will end your cover in 5 days or whenever you tell them the sale is official and you have handed over the car.

Personally ild be safe with a BC but if not the other option is to take a laptop with a wireless dongle and get him to netbank it accross and note the transaction number.

Either way unless he pays by EFTPOS or good ol ca$h theres always a processing delay.

No reason to be afraid of a bank cheque