So I have my motorcycle up for sale on craigslists and a guy from another state calls and tells me he's interested and has family here that would like to take a look at it. So I met his relative and the following day the guy said he'll buy the bike but is going to take out a loan for half and pay cash for the other half. I told him that's fine as long as it's a certified bank check that I can cash.

Well we met at the bank today to try and cash the check but my bank said it's not a certified check and it's a business check that I'll need to deposit it. They also advise me not to sign over the title and give it 10 business days to see if the check bounces. The guy is all pissed now and is saying if he can tow the bike back to his home in MN and I can hold on to the title until the check clears. I refused to do that and now the deal is off.

This whole time I never met the actual guy who's buying the motorcycle and if he's the one taking out the loan then why can't he just pay the whole amount with cash? What do ya think? Scam or not??

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scam. you did the right thing.

 

This

No one (normally) takes out a loan for half and pays cash for the other half.
They'd go to the bank, secure a loan, pay the BANK the other half in cash (down payment) and the bank writes you a check for the full amount, and he pays the bank the amount of his loan.

I.E, you sell the bike for 6k.
He goes to the bank and says he wants to buy a 6k bike but has 3k in cash.
He gives the bank 3k in cash.
Bank writes you a check for 6k.
He pays the bank a payment based on 3k (actual loan amount)

 

Yep.

 

I can't believe I almost got scammed then. I mean his so called relatives actually met me at the bank. The guy now knows where I live and my name and how I look like. Should I be worried??

 

No lol.

 

In Canada almost no one accepts checks (cheques) here anymore due the risk involved. In my travels through the U.S. I notice that more places accept personal checks there. Certified checks only IMO, if they guy can't pay the $10.00 to get a check certified (or whatever the fee is) then it isn't worth dealing with him. Over here we can go to the person's bank/institution and you can pay the cost to have the check certified and the money comes right out of his bank account, you just have to pay the fee. If the money isn't there to cover the check the bank teller will let you know and you just walk away. I've had to do that to people who have owed me money.

Remember this: "In God we trust, and everyone else pays cash"

 

Tell him if he still wants it, he can show up with the amount in cash. If he has enough money to write the check, he can withdraw the money from the account tied to the check and pay cash.

You did the right thing, but be sure to blame your bank for noting that it's not a guaranteed-funds type check.

 

From the outside looking in on this, just because he is out of state does not make it a scam. HOWEVER, if it's a businss check that means basically it's a personal check thus you need to wait till the funds clear.

A few questions remain such as:

What business wrote the check and does he work there or the owner?

In most states possession is 90% of ownership but at least you are holding onto the title but still very risky.


I would say this deal is a bit suspicious and I would do what you did and wait for the next buyer not worth the risk

 

. . . and what are the chances it'll have a tidy resolution three months on?