Safest way to accept payment in a car sale

[dhutton]

It looks like I have sold a car and the buyer wants to pay me cash when he picks it up. I don't want to do that since it will raise a flag with the IRS when I deposit it in the bank as far as I know. I am not making money on the sale, I just want to avoid a hassle. I have done this easily in the past when the buyer and I used the same bank but that is not the case this time.

What is the best non-cash way to accept payment and immediately release the car without taking a risk of getting a fake cashier's check etc? I've already been Keislered once this year.....

Thanks,
Don

[Rick Dorion]

I think a bank has to report a deposit of $10,000 and more(?) I sold a car for cash and made a few deposits over several weeks. Also, had to verify all the bills' watermarks before signing over the car! Anyway, didn't answer your question but congrats on the sale.

[dhutton]

This is more than $10,000. As far as I know cash is the trigger for the banks to report. At least I have never had an issue otherwise when deposits were checks for more than that amount.

I'm not making any money on this sale. I'm just trying to avoid a potential hassle.

Thanks,
Don

[rickpaw]

$10k will trigger a report to the IRS. You can make several deposits but it can be a hassle. If the buyer is local, meet him at his bank where you can watch the cashier's check being handed over from the bank to him. That way the chance of fake checks can be minimized.

Congratulations on the sale and good luck.

[MattO]

If he does pay in cash, make sure to verify every bill. Feel the collars of the shirts of the picture (there is a definite texture there), observe the color shifting ink that notes the denomination, look for random red and blue fibers, of course, the water mark, and if you have a black light, anything from a 5 to a 50 has a special stripe inside the bill that shows up under black light and also has the denomination written inside of that stripe (20's are green, and 50's are blue/purple I believe). I am not 100% sure the 100's have a stripe like the other bills that shows up under black light, but I think they do have the same stripe noting the denomination.

[Van B]

I always like a wire transfer. But if he is coming to you with cash, make an appointment at your bank to verify all the bills, plus then he knows you don't have a pile of cash sitting at the house after he leaves with the car. It is him that will have to fill out the government forms.

[WSSix]

Cash is the safest way. Just deposit the money over the course of a few months or weeks if possible. Grab yourself a black light before going and scan every dollar.

The other option is wire transfer. You'll have to give him your bank account and routing number though. I've been told this is still safe because even with that info he can't initiate anything. I've never done it though.

You may be able to get a separate account created just for this one time or for occasional use. Possibly talk to your bank to see if they are willing to help or have an option.

[rjsjea]

Meet him at the bank for the $$ transfer

[66fury]

why even put it in the bank? put it aside in a home safe or cookie jar.use it as your day to day money and bank your paycheck or do a monthly deposit spread out over the course of the year.its sad to think that you have to think as if you committed a crime to keep your money in your hands.the irs and the crazy seizure laws are stealing hard working peoples money.

[DRJDVM's '69]

My vote is to do it at the bank....or direct bank wire transfer.