Buying a new boat - how to pay?

I am looking to buy a used boat from an individual in a neighboring state. Question: if I make an offer to buy - how do you make the payment? I really don't want to carry around 30K in cash. I was thinking of having a cashiers check made out - and then "cancel" it if I end up not buying the boat (don't know if this is possible). How is this normally handled?

(Message edited by wiltok on April 07, 2003)

Keith,
Cashiers or personal check would be safest. You can place stop payment at bank or cancel if "boat don't work!" Cashiers check is guaranteed and the seller can verify the funds on your personal check through a phone call (if they're willing to take?) Another option is wiring the money into the sellers account from your account, only after the offer has been accepted. May want to check with your bank to make sure it won't cost you an arm and a leg for interstate transfers and what the daily cutoff times are? Also, confirm with the seller that they are willing to give you and your bank their account info? Most likely will....
Because being a boat owner already, you know that the "two happiest days of your life are when you get your boat and when you finally sell your boat! Then the cycle starts all over......
Congrats and Good luck.....!

Make the check out to "Seller's name OR Keith Wilton". It is commonly done and allows you or the seller to cash the check without the need of a stop payment or canceling the check. My bank charges extra for a stop payment on a cashier's check so putting both names on there has worked great.

i wrote a personal check.

are you worried about the seller being in another state or something? will he take a personal check?

no matter what kind of check it is, a check doesn't need to be cancelled unless you hand it over.

Thanks for the advice. I don't know if he will take a personal check - haven't asked. But in my experience most people would require a cashiers check. I guess that's my question - how do you "cancel" a cashiers check if you never cash it?

You have the check made out to yourself then you endorse it payable to (the guys name) then sign it. If you dont use it you just deposit it in your acc.I do this all the time when going to purchase equipment.

Buy a cashiers check payable to the owner. If you change your mind, take the C/C back to your bank. As purchaser you can endorse the check "Not used for purpose intended" and re-deposit it, or cash it, or whatever you want. You can even have them turn it into a new cashiers check payable to someone else. At least that's how we do it in California. It should work unless you have some funky state banking regs.

Few people know this a Cashiers Check can be cancelled, after some experience with this, my buddy lost his porsche this way.

Do not follow Sean's advice. Sorry Sean, I don't mean to come down on you, but none of the banks I have worked for will take a cashiers check that has been signed over to another party. That would be opening them wide open to fraud. Most banks will not even take regular third party checks, but none I know of will take a third party cashiers check. You may have had good luck in the past doing this, but that isn't the normal operating proceedures for most banks.

Wishbone is exactly right. I am in banking and every bank I have ever worked for will allow the original purchaser to sign the back of the check and write "not used for intended purpose" and allow you to redeposit it into your account, reissue the check in another name, take cash, etc.


(Message edited by 6more on April 08, 2003)

Brian
Thanks for the info i will change how we do it from now on Funny thing is thats how my bank told me to do it. Might have been easiest for them.

As usual, the 'Board has come through!! Thanks again.

Brian S - are you a cap markets rep in a bank? I work with reps as part of my job.

I sold my 2001 wakesetter last year to a guy from another state. He brought a cashiers check made out to me. We went to my bank, where I took his check, paid off my loan, got my title, signed it over to him and had the bank notorize it. Smooth transaction.