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Davydee

Cashiers Check using out-of-state bank

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We've ordered a new tow vehicle and had planned to pay by personal check when it arrives next year. The dealership doesn't accept out-of-state checks. They've told me that they'll send me to their local bank who will cash our check and issue a cashiers check. Never done this and just not sure what I'm getting into. Any thoughs, recommendations, etc? Thanks!

 

David

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I assume the dealer has had customers do this before, but I'd check with that local bank first, anyway, to be sure they'll do this for someone who isn't a customer.

 

Since the dealer will accept a cashiers check, why not have it done at your local bank before you leave to go pick up your RV? Or arrange for your bank to wire the money to the dealer.

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In this day and age anyone taking a cashiers check is asking to be scammed. In this case it doesn't affect you just the dealer.

Be as it may, a bank transfer is the only way to go. The cash can be ready to transfer as soon as you sign the papers for the car.

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Paper checks have a lag time from execution to the money arrival and so it leaves the dealer subject to the possibility of a bad check. Even if the dealer calls the bank and the check is validated, there is still a lag in which the availability of funds could change and it is much greater when from an out of state bank. If you do as the dealer suggests there will be a charge for services from the dealer's bank. An electronic transfer probably won't cost you and is a better choice. Call your bank and discuss it with them.

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Davydee,

Ask if they will accept a credit card for the purchase. You may be surprised. If so just arrange with your bank for a no cost cash advance covered up front before the advance. You are also more protected by credit card. If you don't ask no one can ever say yes. I bought my 24X30 workshop that way back in 2005.

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We have an RV lot in the UP of MI, Cedarville, and there are no Chase Banks anywhere around. I wined about having to pay ATM fees to get money because I am cheap and don't think that I should have to pay fees to access MY money. We were surprised that the National Bank of St. Ignace, MI, let us get $500 without any fee. I have done that several times.

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Friend bought a new Tahoe several years ago. Plunked down his credit card. The dealer looked twice and ran it. No problem. When the bill came the following month he paid it off. Why didn't he pay cash? Simple he used the airline miles he got on the credit card to fly to the Caribbean to visit a friend. Sneaky

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12 minutes ago, avvidclif said:

Friend bought a new Tahoe several years ago. Plunked down his credit card. The dealer looked twice and ran it. No problem. When the bill came the following month he paid it off. Why didn't he pay cash? Simple he used the airline miles he got on the credit card to fly to the Caribbean to visit a friend. Sneaky

Like a fox . ;)

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I tried to buy a HHR back in 2008 with a credit card. Dealer would only take up to $2,500 on any CC.
CC had twice the car amount limit on it.
They happen to have a bank branch of mine nearby. They had a person from the dealers company drive me to it and I got a cashiers check for the full amount..

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On 11/23/2016 at 7:59 AM, TheDuke said:

In this day and age anyone taking a cashiers check is asking to be scammed. In this case it doesn't affect you just the dealer.

Be as it may, a bank transfer is the only way to go. The cash can be ready to transfer as soon as you sign the papers for the car.

While that is true, I tried to do that when I bought my motorhome, recently. The dealer viewed the wire transfer the same as a personal check. There was a wait time on it....wires can be "called back". 

Curiously, they DID accept an out of state cashier's check - which is commonly forged. No issue there...walked out with the MH. 

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4 hours ago, Jack Mayer said:

The dealer viewed the wire transfer the same as a personal check. There was a wait time on it....wires can be "called back". 

I'm not saying that didn't happen to you, but your dealer needs a better banker. Here's a quote from a bank association website:

"The ability of an originator (or the sending bank) to recall a wire hinges primarily on whether or not the payment order has been accepted by the receiving bank. That principle applies to both domestic and international wires." 

Essentially, once the receiving bank has the money in its accounts it can't be retrieved. That's why you have to be VERY careful when sending a wire! 

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Just now, docj said:

I'm not saying that didn't happen to you, but your dealer needs a better banker. Here's a quote from a bank association website:

"The ability of an originator (or the sending bank) to recall a wire hinges primarily on whether or not the payment order has been accepted by the receiving bank. That principle applies to both domestic and international wires." 

Essentially, once the receiving bank has the money in its accounts it can't be retrieved. That's why you have to be VERY careful when sending a wire! 

 

True. But this large national dealership is very challenged in its back office operations - in my opinion. They will pretty much accept any form of payment. But for a check the average wait is 10 days....because they don't hear back from the "home office" for that long. I suspect the same is true of a wire. It is there. The local dealer is just not informed. The cashier's check "seems" to work for them because they have possession of it in the Local dealership. It could easily be counterfeit. They don't seem to care. Oh, and like most businesses, they will NOT accept cash.

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8 hours ago, avvidclif said:

Friend bought a new Tahoe several years ago. Plunked down his credit card. The dealer looked twice and ran it. No problem. When the bill came the following month he paid it off. Why didn't he pay cash? Simple he used the airline miles he got on the credit card to fly to the Caribbean to visit a friend. Sneaky

8 hours ago, Biker56 said:

I tried to buy a HHR back in 2008 with a credit card. Dealer would only take up to $2,500 on any CC.
CC had twice the car amount limit on it.
They happen to have a bank branch of mine nearby. They had a person from the dealers company drive me to it and I got a cashiers check for the full amount..

I told a dealer to run a Chase Visa.... he said they don't accept CC.... I mentioned that their Service dept did...told them to call Chase and ask if the funds were available.... the manager still balked at the idea.  I walked out and went to a town farther away, bought a truck with a few more options at a few dollars more, and went back to the original dealer the same day....  Asked them how much their kick back from their finance sources had cost them.....

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The idea about checks waiting times today has an exception too. My Bank, USAA, accepts checks scanned in from our home office printer scanner. People look at us funny when we tell them we prefer checks. The funds from a scanned check are available immediately with USAA:

https://www.sharedreviews.com/review/usaa-checking-accounts-scan-checks-at-home

Or from your phone:

https://www.usaa.com/inet/pages/bk_ck_howto_mobiledeposit_landing_mkt?akredirect=true

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We bought a RZR a few years ago.  We talked with a Chase bank and our bank back home.  With our debit card Chase was able to retrieve the funds from our bank and issue a cashiers check.

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11 hours ago, Alie&Jim's Carrilite said:

I told a dealer to run a Chase Visa.... he said they don't accept CC.... I mentioned that their Service dept did...told them to call Chase and ask if the funds were available.... the manager still balked at the idea.

I tried to do that with a new car a few years back and was told that the dealership has a maximum of $1500 that they accept credit cards for. That is understandable since credit card fees are usually about 3% of the total purchase. Of course, any rebate or "miles" that the card gives back have to come from those fees. 

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