The main difference between physical cash and money orders for private-party car payments is that cash is a popular car payment method and money orders aren’t. Cash is straightforward and relatively quick, while money orders add unnecessary complexity to the transaction.
We’ll discuss cash as a car payment method, why you should skip money orders, and introduce you to a better way to exchange large amounts of money during a private-party car transaction.
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:
Cash is relatively easy to withdraw, hand over, and deposit, making cash transactions quick and straightforward.
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.
These downsides make physical cash a clunky payment method for high-value transactions.
Money orders can get the job done in private-party transactions, but they don’t have any upsides compared to cash—or most other payment methods.
Money orders are certificates of value purchased from post offices, convenience stores, grocery stores, drug stores, banks, credit unions, Western Union outlets, or other retail locations. They are similar to cashier’s checks but aren’t tied to a bank account. Since money orders are backed by the issuing authority, they always have sufficient funds.
There are two main reasons people avoid them for high-value car transactions:
Whether you’re buying or selling a car, skip the money orders. Cash is more trusted and similarly cumbersome in large quantities. And wire transfers are a much safer alternative to carrying around a wad of paper. Unfortunately, no matter which common car payment method you choose, you’ll run into another problem.
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; they’re at an impasse.
When the stakes are low, this issue is minor. A buyer probably won’t sweat paying for a 2002 Accord, but for a late-model Corvette, no buyer wants to slide the money across the table without some form of assurance. And no seller wants to hand over their asset until they’ve been paid.
A bill of sale is a legally binding document that protects both parties. Should either party have ill intentions, the other party has a document that will hold up in court. This generates enough trust for the buyer to hand over payment.
A bill of sale records the transaction terms. Most states have official bills of sale with these fields:
The seller and buyer can each print a copy of their state’s official bill of sale (or use a generic template if their state doesn’t provide one). Before exchanging title or money, both parties can fill out two copies, sign, and countersign.
However, printed bills of sale have two minor issues:
A digital bill of sale—stored in the cloud, signed and countersigned under both parties’ verified identities—overcomes these issues.
DealNow solves the trust problem with a digital bill of sale. Both parties sign through the DealNow app so they can continue the transaction with confidence. Besides the bill of sale, DealNow also secures both parties from the start with ID verification and buyer funds verification. Buyers and sellers can walk into the transaction knowing they’re dealing with vetted counterparties and verified funds.
Besides our high-tech approach to security, DealNow is the best payment method for high-dollar car transactions because it was purpose-built to streamline the transaction process.
With DealNow, you’re not just getting a payment method—you’re getting a complete, high-speed, digital platform for smooth, secure car transactions.
We’ve designed the DealNow app to make buying or selling a car as fast and safe as possible. Here’s what a typical transaction looks like:
The whole deal can be wrapped up in an hour or so on a Saturday night. If you’re ready to simplify your next auto transaction, you’re ready for DealNow.
No. You can purchase a money order with a debit card, traveler’s checks, or physical cash, but most places won’t accept credit cards.
Money orders are physical documents, similar to checks. The recipient must physically deposit or cash them. For large transactions, such as vehicle purchases, DealNow provides a digital solution that enables instant transfers between parties.
Physical cash transactions are largely untraceable once the bills change hands. This lack of traceability makes cash risky for high-value transactions. DealNow provides a secure digital payment solution with a complete transaction record for both parties. Enjoy the safety and legal protection of a digital bill of sale so you can finish the transaction with confidence.
Cash money might not be the best method of payment, but it’s better than many others. Here are some payment types to avoid:
Physical money or wire transfer is better than the above methods for a large transaction, but they’re still inconvenient, slow, or risky. DealNow lets the buyer send instant digital cash to the seller.
The safest form of payment when buying or selling a car is one that provides security, speed, and verification for both parties. While traditional methods such as physical cash, personal or cashier’s checks, or escrow services are popular, DealNow offers a modern, efficient solution.
DealNow combines the security of escrow with instant digital payments. It verifies buyer and seller identities, provides a secure platform for the transaction, and enables immediate payment upon deal completion. This eliminates risks associated with cash (theft, counterfeit) and checks (bouncing) while avoiding the delays of traditional escrow.
You don’t need an escrow to buy or sell a car. Some people prefer traditional methods such as cash, personal checks, cashier’s checks, credit card payments, or electronic funds transfers. Others may avoid escrow due to its fees and complexity.
The alternatives can be risky. Cash transactions are vulnerable to theft or counterfeiting, skilled forgers make counterfeit checks, and electronic transfers require the seller to disclose sensitive bank account information to a stranger.
DealNow combines the security of escrow with the speed of digital transactions, all without fees. It’s designed to make secure, private-party vehicle sales accessible to everyone.
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.
