When would one typically pay using a banker's draft?

Paying with a banker's draft is typically reserved for significant transactions where one party may require assurance that the funds are available and guaranteed. In the case of purchasing a managing director's new company car, the transaction is generally large and involves a significant amount of money. A banker's draft provides security for the seller, ensuring that the funds are guaranteed and will not bounce. This method of payment is commonly used in high-value transactions, such as vehicle purchases or real estate deals, rather than everyday purchases like groceries or online shopping, where other payment methods are more practical and efficient.