Getting Paid

Securing payment from a stranger can be a scary stage in the selling process. To protect yourself from con artists and other tricksters, there are a few things to keep in mind.

How Do You Want to Get Paid?

As the seller, you get to decide how you get paid: Do you want your money as a personal check, cashier’s check, money order, electronic transfer or cash? It’s probably best to mention this to the prospective buyer before the negotiations begin or place your preference in your ad.

Cash

If you want to keep things simple, you can always ask for cash only. However, you might scare off buyers who don’t want to carry around such large sums of money.

Personal Check

If you accept a personal check, go to the bank with the buyer to verify the check's authenticity before you hand over your car keys. If that’s not possible, confirm with the issuing bank that the check is valid. Look up contact information for the bank on your own, as a forged check might include a phony bank address and phone number. If the buyer will allow it, wait until the check has cleared before you hand over your car.

Cashier’s Check

Cashier's checks are a safer bet than personal checks as the issuing bank guarantees it’s legit. Still, make sure it’s drawn from a local branch. A bank can ask for their money back one or two weeks later if the cashier’s check is found to be invalid. This is a common way of defrauding people these days.

Money Orders

Money orders are safer than both personal checks and cashier’s checks because they’re essentially a guaranteed voucher for cash; the buyer must prepay a certified issuer to get the money order. But keep an eye out for counterfeit money orders. Also, keep in mind that certain issuers like the Postal Service limit the amount of cash you can place on a single money order.

Electronic Transfers

Another good bet is sending the money electronically through companies like PayPal.com or Escrow.com; both are legitimate and safe to use. Both PayPal and Escrow.com offer protections to buyers and sellers. There are other similar sites online, but be sure you’re certain of their legitimacy before you use them.

Wire Transfer

Never, ever wire money to a potential buyer under any circumstances. Seriously. If a buyer pays via a check or money order, accept payment for only the exact amount of the sale price.