Although banker's drafts are a safe and secure way to pay for a car from the buyer's point of view, it can be quite a different story for the seller. It has become increasingly common for criminals to forge banker's cheques to pay for vehicles. They rely on the seller's perception that a banker's draft is as good as cash; however, banks will not honour fraudulent drafts, nor will they honour drafts that cannot be cleared through lack of funds.
A counterfeit cheque may look highly professional and come complete with a watermark or embossed text. However, a few days after you deposit the cheque, you will invariably be informed by your bank that the draft was forged and the money will be stripped from your account.
It is therefore essential that you do not release your vehicle until you have had confirmation from your own bank that the bank draft is genuine and has been paid by the bank issuing the bank draft. There is a difference between drafts being cleared and funds being in the account, so you must ask the bank if the draft has been 'given value', rather than if it has been 'cleared'.
Some buyers may try to pressure you into releasing your car early, by giving you a cheque for the full asking price in the evening or at the weekend when the banks are closed. Do not be bullied; a genuine buyer will not mind waiting until the draft has cleared, especially if you put everything in writing as soon as you are given the draft.
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