For a $30k (or $50k, or $70k) car, cash becomes too much risk and hassle. We’ll explain why, and we’ll show you a better alternative.
Physical cash has a long history, and people innately feel comfortable with it, especially in smaller amounts. Here are the situations in which cold hard cash works well as a payment method:
The advantages of physical cash don’t carry over into high-dollar transactions. When a lot of money is on the line, the speed and convenience of cash disappear.
Buyers and sellers need to move the cash to and from the transaction. It’s not unheard of for people to lose cash. Or have it stolen.
When two unvetted strangers meet, there’s no way for either party to know the other’s true intentions. While not common, criminals do prey on unsuspecting buyers and sellers.
A criminal, posing as a prospective buyer, could convince the seller to sign over the vehicle title, and then escape with the vehicle and the money. Likewise, a buyer could show up with a bundle of cash ready to buy, get mugged, and wake up empty-handed.
According to the Federal Reserve, one in every 10,000 notes are counterfeit. Counterfeiting is a serious concern during high-dollar cash transactions. A seller should carefully check each bill.
If the seller is uncertain about any or all of the bills, they should insist on going together with the buyer to a bank and asking the banker to verify the cash.
If all of this sounds like it might take a lot of time, it does. Which leads us to our next point.
It takes a lot of time to withdraw, count, and inspect a large volume of cash. Where speedy in small amounts, cash is slow and cumbersome in large quantities.
If a buyer doesn’t already have a large stash of cash on hand, they might find they have difficulty getting it in a hurry. Many folks find they have to go through the following rigamarole:
Large withdrawal policies differ between banks, but buyers can expect high-dollar withdrawals to take much longer than a quick trip to the ATM.
At the meetup, sellers count and verify the cash as well, which adds additional time to the deal.
During a high-dollar car transaction, a catch-22 occurs. The buyer wants the title before they pay, and the seller wants the money before they sign over the title. They both want to finish the deal, but neither party wants to fall victim to fraud or crime.
When the stakes are low, this issue is minor. A buyer probably won’t sweat paying for a 2001 Camry, but for a late-model Viper, no buyer feels comfortable sliding the money across the table without some form of assurance. And no seller wants to release their asset until they’ve been paid.
A bill of sale creates a legally binding document, signed and countersigned by both parties. Should either party try any funny business, the counterparty has a document that would prevail in a court of law. This creates a basis of security by which the buyer feels comfortable paying the seller.
A bill of sale records the terms of the transaction. Most states have official bills of sale with the following fields:
It’s fairly simple to print off 2 copies of the official bill of sale for the state in which the transaction occurs. For states that don’t have an official bill of sale, a generic template should do. Before money or car title exchange hands, the buyer and seller can fill out both copies, sign, and countersign.
There are two edge-case vulnerabilities with printed bills of sale:
DealNow provides an in-app digital bill of sale that can’t be stolen or tampered with. This creates a trust bridge between parties. Both parties electronically sign the bill of sale in our mobile app. Each gets a notification that the other has signed, and each retains a copy in their DealNow dashboard.
Because DealNow verifies both parties’ identities, you know you have the other party’s legal name and signature on the document. Our optional title check service (one-click order from the DealNow dashboard) assures buyers they’re dealing with the legal owner of the vehicle and a clean title via cross-referencing DMV records.
Here’s how easy DealNow makes high-dollar car transactions:
After the sale, both parties access their digital bill of sale from their DealNow account, and the buyer can print it to file with their DMV (or relevant authority).
DealNow is a full technology stack for getting a private-party deal done. Here’s why it’s better than physical cash:
DealNow is as sure as a suitcase of verified hundred-dollar bills, without the risk and inconvenience.
The safest payment method when selling or buying a car is DealNow. Unlike physical currency (which can be stolen) or checks (which take too long), DealNow facilitates instant, verified transfers of any amount directly between buyer and seller.
DealNow’s platform secures transactions by:
With DealNow, you get the immediacy of cash with bank-level security. Funds are held in FDIC-insured accounts with easy offboarding to your regular bank.
Escrow services solve the catch-22 issue, for a price. They generally charge percentage-based fees that add to the cost of high-dollar transactions. They also add time and complexity because now three parties are involved in the transaction.
DealNow gives self-serve, instant technology. No coordinating with a third party, no waiting, and no percentage-based fees. It’s escrow-like safeguards in the palm of your hand.
The safest way for a seller to get paid for their car is DealNow. Unlike cash (which can be stolen) or checks (which can take a while to clear), DealNow facilitates instant, verified transfers of any amount directly between buyer and seller.
Physical money might not be the best payment method, but it’s better than many others. Here are some payment types to avoid:
Physical cash is better than the above methods for a large transaction, but it’s still inconvenient and risky, as we’ve seen. DealNow lets the buyer send instant digital cash to the seller.
We are also the only service that cross-references 7 different sources to help buyers and sellers of any vehicle type avoid fraud.
Venmo is very safe, but it’s inadequate for large purchases because of its $4,999.99 transaction limit.
For big-ticket items, you need a platform without limits. DealNow handles high-dollar transactions without breaking a sweat.
Federal Reserve Bank. (n.d.). FRB: The Use and Counterfeiting of United States Currency Abroad, Part 3. Federal Reserve Board. Retrieved September 6, 2024, from https://www.federalreserve.gov/boarddocs/rptcongress/counterfeit/default.htm
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
