Whether you’re buying or selling a car, personal checks are a no-go.
Let’s break down why personal checks are useless for car deals and show you an alternative that actually works.
Personal checks (or “regular checks”) are transfer orders attached to the payer’s checking account. When the payer writes a personal check, they’re telling the bank to send money from their account to the recipient’s account.
When the recipient deposits or cashes the check, the bank often credits the funds immediately and verifies the check a few days later.
Personal checks are drawn directly from the payer’s bank account. Cashier’s checks come from the bank itself. This makes them a tried-and-true payment method for high-dollar car transactions.
With a cashier’s check, the buyer orders the check from the bank and the bank issues the check after taking funds from the buyer’s account in the same amount (plus fees).
Vehicle sellers won’t accept personal checks because there is no proof the buyer has the funds.
If the buyer’s account comes up short, the check bounces. When the bank catches the bad check, they take the money right back out of the seller’s account. If the seller already transferred vehicle ownership, they’re out the car and the money.
The only safe way for sellers to get paid for a car by personal check is to wait for 2–3 days for the check to clear before continuing the sale. But most buyers won’t be comfortable writing a check and waiting to get the car. Which brings us to the classic catch-22 that strangers face when trying to do a high-dollar transaction.
When two strangers come together for a car transaction, they don’t necessarily distrust each other, but no one wants to be a dupe. The seller doesn’t want to sign over the title and release the car until they get paid, and the buyer doesn’t want to give up the money without knowing they’ll get the car.
No one wants to end up holding the short end of the stick.
Here are two common solutions people have used to overcome the catch-22:
A bill of sale is the much cheaper and quicker solution. Both parties can print a copy from either their state DMV website or using a generic template (still legally valid).
But printed bills of sale still face a couple of fringe risks. If the buyer is using a fake ID or alias, the seller won’t receive legal protection in the event payment falls through. If either is a truly bad actor, they might forcibly make off with their counterparty’s copy of the bill of sale, along with the car and the funds.
DealNow transfers funds instantly and protects both parties with a digital bill of sale, signed, countersigned, and stored in the cloud. Our cutting-edge digital payment platform is purpose-built to facilitate high-dollar car transactions.
Here’s what you can expect when you do your deal with DealNow:
DealNow is the solution both buyers and sellers have been waiting for.
Cashier’s checks are the safest form of check payment. The funds are provided by the payer’s bank. As long as the recipient verifies the check by visiting the bank or using a legitimate phone number to call, the funds are guaranteed and the check isn’t a fraud.
The safest form of payment when selling a car is DealNow. Unlike checks, we do instant, verified transfers of any amount directly between you and the buyer.
With DealNow, you get the immediacy of physical cash with Venmo-like mobile simplicity. Funds are held in FDIC-insured accounts with easy offboarding to your regular bank.
Personal checks are not safe, but cashier’s checks are safe if you verify the check or wait until it clears to finish your deal.
If you’d like a safer way to get paid, try DealNow. Our identity verification and built-in safeguards protect against fraud and scams, so you know you’ll get your money when the deal is done.
The best form of payment when purchasing a vehicle is DealNow. DealNow combines the safety and confidentiality of a bank with the speed and convenience of a mobile payment app.
Here’s why buyers love paying with DealNow:
DealNow is the best way of exchanging large sums of money for both sellers and buyers.
These payment methods have more downsides than they’re worth:
DealNow gives users the Venmo-like transaction speeds, bank-like security, and unlimited transaction sizes for a low, flat fee.
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.
