Say I'm paying cash on a used vehicle?

Joined
Nov 2, 2017
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77
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Colorado
Heck my middle son just paid with a cashier check after price was finalized. Finance was NOT happy and still kept trying to add stuff on. A fellow I worked negotiated a cheap price, then financed it thru the dealership after verifying there where no prepayment penalties, he paid it off with his first payment.
 
Joined
Oct 5, 2005
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5,266
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Kansas
Where do people come up with this stuff? Unless you're buying a different car every week, the IRS has better things to do.
We’ll, let’s see now…,
Wasn’t there a lot of money just added to the IRS that will be put into law?
You’ve obviously never been audited.
Just a couple blips on the IRS radar screen and you will get audited, especially with just a few large cash transactions. Why risk it?
 
Joined
Apr 27, 2010
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Suburban Washington DC
How many times a year do you pay over $10,000 cash for something? A form 8300 filed in your name a few times a year shouldn't trigger an IRS audit unless you have a history of shady activity.
 
Joined
Aug 24, 2017
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Displaced Texan in Mexico City
So you were OK with the dealership filing the form mentioned above to the IRS and the Financial Crimes Enforcement Network? A bank check would have prevented it.

The OP likely isn't going to do much dealing with cash in today's situation unless maybe at a used car lot.
Yes it was part of my inheritance and was all documented and legal. It was reported to the IRS when the money came in and out plus I got receipts and keep the electronically for 7 years. It helps when your dad is a CPA
 
Joined
Jun 15, 2003
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38,342
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ME
I wrote a $10k personal check as down payment on a new prius. Dealer didn't care at all, they let me drive away. If that check bounced, on a crime that big, the police would get involved and obviously they still hold the title on the balance of the loan. It's the small fry check bouncing that inconveniences people and businesses.

OP should check for a prepayment penalty on his loan paperwork and make his best deal. It will probably be with a loan. If they ask if you're getting financing just shrug and say "I guess so." Then pay it off early or count on some inflation-based COL wage increases to pay the note off with cheaper money.

The bill of sale already gives your personal information and money info to "the government", what's another form for using cash? Sheesh.
 
Joined
Jun 14, 2011
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3,211
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Texas
If a potential buyer gives ANY indication that he might be willing to finance through the dealer, before the dealer will even negotiate they will get your SS # and check your credit. You DON'T want them to do that unless your credit is sketchy. Assuming that you have good credit, you must separate the vehicle from the financing if you want to negotiate the best deal on either one or both. This is the biggest reason for obtaining your own financing BEFORE going car shopping. The dealer profits from both unless you have bad credit. If you have good credit, financing the vehicle through the dealer might get them to reduce the price on the vehicle, but it also allows the dealer to confuse you and extract the most profit from you.
In the case of a used vehicle, particularly at a dealer that specifically advertises "we finance", they will always check your credit before negotiating. They need to know this before negotiating because many/most dealers have "second chance" or "sub-par credit" lenders that specialize in financing people with sketchy credit, but they charge the dealer a fee to finance one of these individuals, which means that the fee is included in the vehicle's price (in many/most states that have usury laws) and the vehicle's price is inflated because of it.
Keep in mind that all of this is subject to normal market conditions, which we are not currently experiencing. The dealers are in the driver's seat right now because of way more demand than supply.
 
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Joined
Dec 30, 2006
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Dallas,Tx USA
Cash is not king anymore. If you walk in there saying you’re paying cash they will suddenly have that fresh bitch-.slapped look on their faces.
 
Joined
Dec 28, 2014
Messages
2,263
I don’t think it matters either way, any reputable place will be able to accept both. I suppose if you say, I’m paying cash - they will lose the potential for financing and play hard ball with you up front. Financing is everything nowadays...dealing with the finance manager...paying whatever rate. And when you whip out $10,000-$15,000 grand cash, well there’s goes their financing and now someone has to count it.

I wouldn’t say anything. I’ll tell you though, I had a finance manager try to mess around with the rates, then he tried to sell me everything ELSE (carpet protection, undercoating, warranty extension). He got rude. He started to stall and make me wait. I whipped out $15,000 cash, plopped it down and said, I won’t finance after all. That was a great feeling. I initially wanted to finance because the rates were so low...it was a used Honda CRV. It was 15k. I just paid cash instead. Felt great but in all honesty I only saved myself maybe $700 bucks in finance interest. It was the principal of the matter.
 
Joined
Dec 28, 2014
Messages
2,263
If a potential buyer gives ANY indication that he might be willing to finance through the dealer, before the dealer will even negotiate they will get your SS # and check your credit. You DON'T want them to do that unless your credit is sketchy. Assuming that you have good credit, you must separate the vehicle from the financing if you want to negotiate the best deal on either one or both. This is the biggest reason for obtaining your own financing BEFORE going car shopping. The dealer profits from both unless you have bad credit. If you have good credit, financing the vehicle through the dealer might get them to reduce the price on the vehicle, but it also allows the dealer to confuse you and extract the most profit from you.
In the case of a used vehicle, particularly at a dealer that specifically advertises "we finance", they will always check your credit before negotiating. They need to know this before negotiating because many/most dealers have "second chance" or "sub-par credit" lenders that specialize in financing people with sketchy credit, but they charge the dealer a fee to finance one of these individuals, which means that the fee is included in the vehicle's price (in many/most states that have usury laws) and the vehicle's price is inflated because of it.
Keep in mind that all of this is subject to normal market conditions, which we are not currently experiencing. The dealers are in the driver's seat right now because of way more demand than supply.
I don’t think I have ever seen this. I’m not saying you’re wrong, but I haven’t had this happen...although the last time I bought a brand new vehicle was 2018.
 
Joined
Aug 28, 2012
Messages
615
Location
NC
Cash is not king anymore. If you walk in there saying you’re paying cash they will suddenly have that fresh bitch-.slapped look on their faces.
If not appreciated I'd tell them I don't 'need' a car today and ________ dealership _____ miles away will be glad to accept it, then walk out.
 
Joined
Nov 11, 2018
Messages
5,447
Location
Great Lakes
If a potential buyer gives ANY indication that he might be willing to finance through the dealer, before the dealer will even negotiate they will get your SS # and check your credit. You DON'T want them to do that unless your credit is sketchy. Assuming that you have good credit, you must separate the vehicle from the financing if you want to negotiate the best deal on either one or both. This is the biggest reason for obtaining your own financing BEFORE going car shopping. The dealer profits from both unless you have bad credit. If you have good credit, financing the vehicle through the dealer might get them to reduce the price on the vehicle, but it also allows the dealer to confuse you and extract the most profit from you.
In the case of a used vehicle, particularly at a dealer that specifically advertises "we finance", they will always check your credit before negotiating. They need to know this before negotiating because many/most dealers have "second chance" or "sub-par credit" lenders that specialize in financing people with sketchy credit, but they charge the dealer a fee to finance one of these individuals, which means that the fee is included in the vehicle's price (in many/most states that have usury laws) and the vehicle's price is inflated because of it.
Keep in mind that all of this is subject to normal market conditions, which we are not currently experiencing. The dealers are in the driver's seat right now because of way more demand than supply.
That wasn’t my experience… did this when we bought our Caliber used at a Nissan dealership.

I didn’t tell them I had financing already lined up, but we settled on a price then they ran my credit, told them I didn’t want a bunch of inquiries in case we couldn’t agree on a price. Figured why not let the dealer run my credit because maybe they can beat my bank. They initially came out with “good news! We got you in at 5%! You guys are young and don’t have a lengthy history yet so that’s why it’s a little high.”

Told them we’ll be back later with a cashiers check from my bank, they asked what interest rate, 3%, and matched it. Told them no thanks I’d rather use my bank just to make my life a little bit easier, so they dropped it to 2.5%. Financing guy was impressed, manager not so much!

But yeah… cash ain’t king. They’ll discount a car if you finance with them because they can make it back and then some from the financing. If I had the cash I’d throw it into an account and have the auto loan come out of that on automatic payments. Keeps the credit report happy and it’s low maintenance. Or make a few payments then pay it off.
 
Joined
Apr 15, 2010
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8,234
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Atlanta,GA
When you say cash do you mean cash or a check? If in US currency then if you pay over $10k it has to be reported. If you don't care go for it.

It's not a big deal. The IRS doesn't use the information. It's used to track money-laundering and the associated crimes. The surest was to get into trouble is trying to avoid the CTR by structuring your withdrawals/deposits.
 
Joined
Apr 15, 2010
Messages
8,234
Location
Atlanta,GA
I'm starting to shop for a used vehicle, and most of the ones I am looking for are at dealerships. I've heard that saying you are paying cash for a new vehicle is a bad thing, but not sure how it goes for used vehicles.

Should I keep it quiet, or come out with it?
I would get the best possible deal on the price, let the dealer make their money on the financing and then pay off the loan when the first payment comes due.
 
Joined
Jun 19, 2019
Messages
1,848
Location
Appleton, WI
I'm starting to shop for a used vehicle, and most of the ones I am looking for are at dealerships. I've heard that saying you are paying cash for a new vehicle is a bad thing, but not sure how it goes for used vehicles.

Should I keep it quiet, or come out with it?

I'll give you some advice to someone who just got out of the car business after several years, nobody cares whether you pay cash or finance. It's not going to shock anyone at any dealership that you choose to do one thing or another.

Right now dealerships are simply happy to be selling any vehicles, period. Yes they MIGHT receive a small kick back if you decide to finance, however, they should not regret you for paying cash.
 
Joined
Oct 20, 2018
Messages
372
Location
D-FW, Texas
When I bought my used ‘18 RDX back in June from an Acura dealer I wrote a personal check for the full amount. I had to sign a doc saying they are technically loaning the vehicle to me until the check cleared.

While looking for a car for the kids earlier this fall, I visited a number of dealers (new/used not buy here/pay here) before buying private party. Some didn’t ask but occasionally one would ask how I’m going to pay. “Oh, It’s used so just cash” and they were okay. I was prepared to turnaround if that became a discussion.
 
Joined
Apr 4, 2009
Messages
702
Location
Southeastern, PA
So you were OK with the dealership filing the form mentioned above to the IRS and the Financial Crimes Enforcement Network? A bank check would have prevented it.

The OP likely isn't going to do much dealing with cash in today's situation unless maybe at a used car lot.

The bank is required to file a Currency Transaction Report for cashier's checks over $10,000, so it would have been reported by the bank as well. That is why the car dealer then doesn't need to report the check as the bank already did.
 
Joined
Jan 19, 2017
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1,135
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Texas,USA
I say finance it and keep the money.

We could’ve purchased my wife’s Sienna outright. But opted to put 20% down, pick up the low interest note, and keep the money.
 
Joined
Sep 10, 2018
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Northern va
My soon to be FIL bought a 19 Tahoe Premier the day before thanksgiving. Wrote a check for 60k and change. He said the salesman didn’t even blink. Guess it’s more common nowadays.
 
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