The most safest way is to ask the buyer to bring cash to your bank. Deposit the money in your account. That way you are saved from checking each note because there are counterfeits in the market.
Then both parties go to any stamp paper wala. Tell him to make a sale deed and a delivery letter. You keep original delivery letter and photocopy of sale receipt. The buyer gets the original sale receipt and photocopy of delivery letter.
Both parties have them sufficient proof of the deal. Remember, its better the buyer drives the car after the payment has been made.
Nowadays, there are fake pay orders too. I personally always take cash and pay cash.
Regarding cheques, do accept cross cheque but never handover the car or any other document till the cheque is cleared. Just don't use the car during that time.
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