So this is a new one to me.

A friend was purchasing a car this week - about $30K. He was paying cash. The sales person told him he could pay by personal check - but my friend didn't trust this and to avoid hassles at the dealership, he got a cashier's check. but in the F&I office he said "Salesman told me I could pay by personal check - he meant cashier's check, right?" F&I person confirmed he could have paid by personal check. No credit check or anything.

That seems crazy to me. I mean, I realize that if you bounce the check it's a crime and all, but it just seems to be an unnecessary risk.

Is this normal???

Last summer when I went with my MIL for her car purchase, THAT dealer's policy was no personal checks over $5K .... but they stretched it to $7K for her.

 

I've purchased a couple of new cars fairly recently with no problems. The first time that I did it I was surprised when the dealership mentioned it as a method of payment. I didn't know if they had some way to verify with the bank that the check was good. Previously I used cashier's checks.

 

I paid my last two cars with a personal cheque. However, we know the salesperson manager really well and we have bought a lot cars and SUVs off of them (40+ years at the same dealer, not just me). On the other hand, if I went to any other place, I would have to have a certified cheque….no doubt

 

It all depends. Many factors involved

 

With a major dealer personal checks are usually fine in my experience. Personal sales cashiers check

 

Interesting. Domestic cheques have already been phased out where I live. Banks only accept foreign checks.

 

i have used personal checks to buy several cars before, never a problem. when i got my gt2 they did say they require wire transfer but that's probably a more extreme case

 

its dealer preference on what they will take but if you pay personal check likely they'll check your credit score first.

 

Personal check no problem with me. I've used them for most of the vehicles I've bought. And, yes, as sensai mentioned, sometimes a dealership will run a credit check even if you are paying by cash or check.

Note, however, that, by Federal Law, which has been in effect since the 1980s, any cash (or check) purchase over $10,000 must be reported to the FBI. That started because a dealership just a few miles from my house (I won't give the name) was busted for knowingly accepting what was posed as drug money from undercover agents. A couple of the staff there were actually locked up.

 

I've bought two Lexus cars in the past few years at two local Lexus dealerships. The first took a $25K+ personal check no problem, the second said they usually take checks but two different people gave me two different reasons why they couldn't on that day.

I figured they didn't trust it and that's fine but they should just be upfront. I ended up paying by credit card which sounds crazy to me because they got hit with the fees on that vs. none for a check. I've had my credit locked down since the Equifax breach so they likely couldn't run my credit.

 

Interesting, my boat dealer would accept a personal check but mandatory 10 day hold/clear.

So I got a cashier's check instead.

 

When I got my 2017 CT last year (used at a Mercedes dealer), they gave me a few options. I did a wire transfer. However, they did tell me a certified or personal check would have worked, but either would have to clear before I took the car home, same with the wire. So basically, everything had to clear. The 2016 I did a finance which they of course send a check to the dealer, HGREG. My 1999 RX300, and this goes all the way back to 2002 when I got it used, I did a cashiers check. I had to do that because I was a few days away from taking it to Mexico, which at the time required under my work visa that any car needed to have been paid off before bringing it in (they had a lot of issues with stolen cars coming over the border), and thus I had to get a fast title to show proof with no lien.

Having grown up in Miami in the 1980s, I very much remember hearing the stories of vehicles being paid outright with cash because of the illicit drug trade that pervaded that time.

 

This would be how I would expect it to go. I'm thinking that the buyer could show the dealer on a mobile app the current account balance to re-assure the dealer the funds are there...but, also, you could have someone literally at the bank and text them to go ahead and withdraw all the $$ from the account after you showed the dealer.

I guess I should be pleasantly surprised that so many dealers are that trusting...

 

I have gone to the bank to get a cashier's check, but I have never actually written a check, lol.

I would want to know if the dealer took Venmo or Zelle. Last time I bought a car I swiped my debit card after using the max amount on my credit card they would allow.

 

i believe dealers do credit checks all the time without informing the consumer.