Quote:
Originally Posted by The X Men
I agree, a cashier's check is as good as cash and if he had a cashier's check, I am sure back up financing would not be necessary. Dealers usually want some sort of back up financing if one or both party wants to close the deal that day. Usually its the dealer who wants to close the deal just in case the customer change their mind or cannot come thru with the financing. The credit union usually want some sort of paper work from the dealer to process the loan, and those paper work can only be generated after the deal has been closed.
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If the customer chooses to back out, even if the dealer did a credit check, the dealer can not take the funds from the finance co without the clients' signature. That's what the deposit is for. You simply can't force a purchase. You can sue for damages (unlikely, as the dealer will sell the car to someone else and the damages are unlikely to surpass the amount of the forfeit deposit).
Car purchases should always be done by certified cheque (check), also known as a bank draft. You can call the issuing bank to confirm the authenticity of the check, and I'm sure most dealerships do this to make sure they are not taking a fake document.