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I'd agree following them to the bank is a good idea. When I sold my car the buyer gave me a cashiers check a week before he picked the car up, that way it had time to clear the bank. I also held his drivers license while he took it for a test drive.
That would probably be the best, but trust is a two way thing, the buyer could also be worried that I'm ripping him/her off and running away with their money. It seems that paying the cash in immediately in the presence of the buyer would be the quickest and most reassuring for both parties.
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Cheers,
Andy M