tvo7

I was wondering what everyones experience is with buying a car in cash. Lets say if I want to buy an E class for 50k, would I be able to walk in with 50k in cash in a suitcase and buy it outright?
Would the dealership have any problems with buying a car in this manner?

MyE

Used cashiers check instead of a suit case in the past many times. Be aware that under the new reporting act, any amount over $10K will be reported to the government via a form that you the customer don't know about. This way they can trace the funds to its source. The dealer will not tell you about it. If you use a cashiers check, the bank will do it.

tvo7

thanks,
So it seems they are more than happy taking suitcase of cash. They will report it to IRS unless it is 10,000.

MercedesFTW

My C55 was paid for by check in full.

PhilipM1

I bought my E class cash.. but it was less then 10k lol.

Yeah they dont mind cash customers. And the IRS thing isnt new. Its it is 10k or more the IRS gets alerted. Same with banks if you are depositing.

nick 55

You need to warn the dealership that you are arriving with that much cash(and me, with your route to the dealership), because that is not cool for the cashier when making the deposit. It will add considerable time to your experience at the dealer, because it will all have to be marked to ensure it's real and then counted. Plus, that amount of money needs to be picked up by a truck and taken to the bank before they get held up by your buddies that know you left with a car you payed cash for. Stupid move.
Go with the cashiers check.

alpinweiss

I actually witnessed a cash purchase over 20 years ago. I was stunned. I was young, and it was more money than I had ever seen.

A farmer had just sold his crop (wheat, I think) for a very good price. At that time they were often paid in cash for crops at the local coop. He came into the small town car dealership and bought a brand-new pickup truck. They calculated the deal, and he peeled off several thousand dollars in cash. He drove home in his new truck and left behind his old clunker.

I later talked to the salesman involved, and he indicated that although cash sales were not everyday, he had sold vehicles this way previously. It was a large stack of bills; maybe four or five thousand dollars, which was a lot of money back then.

Times have changed a lot since then. Very few people pay cash for large purchases anymore. Remember that although prices have risen over the years, the denominations on our money have remained the same. Therefore you would need a lot more cash for an equivalent purchase today.

Cash (large sum) now carries a stigma. Everyone wonders where you got it. Is it crime related? You would probably have federal law enforcement looking at you in great detail.

A cashier's check or electronic transfer is much easier for all involved.

E500Newbee

Obviously you have never carried $50k in cash before. NO, you don't need a suitcase to carry $50k in cash unless you have it all in $1 dollar bill, than yes. You only need a small pouch like back in the 80' that we are carrying around our hip. You can ask the dealer if they willing to accept the amount for the car in cash. Trust me, they will not refuse that. They can always report you paid in payment for over a period of time. You can do a lot with cash. When you paid in cash, they can report less to the IRS and make more profit for them since your paying cash. Never heard of the reputation of a car saleman/dealer??? They can lie more than a lawyer can.

tvo7

So you are saying that if I ask them to, a 50K cash transaction, they can report it as being paid over time? And no reporting?

Limibeans

I would not take that large amount of cash on me, anywhere. Besides the fact that you can get robbed, if you get pulled over police CAN temporarily seize a large amount of cash unless you have a "paper" (dont remember what its called) which states that the cash is legitimate, and your intentions/reason to carry it.

I keep a bank wrapped 10 grand wad at home in my safe for emergencies. Keeping cash around is a good idea. Taking 50 grand to a dealership is not.

Get a cashiers cheque from a LOCAL bank, or wire transfer. If its not from a local bank they may be hesitant to let you take the car home that day. I dont think dealerships let you pay and entire sum of a car via credit card anymore, unless you really ARE a baller. "Joe Blow" with an Amex Black may not even be able to pull it off anymore. Dont quote me on this though.

Limibeans

I dont know about this... but you can put 10k down, finance the rest, and overpay. You minimize the interest, and can stay below the radar... Paying for things in all cash is a bit Godfather-esque, and real ballers dont take large sums of cash anywhere other than to casinos, and even then they usually have an ungodly credit line.

Real ballers roll up in their SLR, wearing a Versace suit, with a presidential Rolex in platinum, flashing an Amex Black and tipping the vallet a bill. They dont roll into an MB dealership and buy a 50 grand car in cash... lol... thats a little bit odd dont you think?

E500Newbee

We are not talking about baller, we just discussing bringing cash to the table to deal with buying car. I know there are many baller out there. But, that's off topic.

I can prove where I get my cash, I'm not scare to use it. How come everyone scare of CASH. I like to do that just b/c I want to see their reaction. You'll be amaze how well they treated me. Imagine this, wearing short and tee shirt walking into the dealer with cash and walk out with a car. Damn, what a feeling for those dump asses that look at you any different.

Carl Lassiter

Snap.

Saw the car, negotiated a nice discount and then went across the road to Bank of America before returning and buying my M5 in full with a cashiers check.

nick 55

I have witnessed several cash purchases, one being an S500, and also an X5. Carrying that much cash just isn't wise. I know that the preferred(ie secure) method of paying for a car outright is with a cashiers check. Good job Carl. If they agree that they will take the cash and report it paid over time, there are a lot of variables that will come into play. They have to record it in their books over time, meaning that someone will be holding on to the cash because it can't all be deposited at once. It would be an instant red flag during their internal audits. Whow would be handling the cash? Do you really want a finance guy at the dealer handling it? Or maybe the $12 an hour cashier who makes the deposit in the safe? Would you trust your salesperson to handle it? If you do have that much cash, wouldn't you like to make sure it gets where you want it to go so a repo truck doesn't pull up and gank your ride because some low life figured nobody would miss a couple grand? I wouldn't.

ScottCLS55

This practice of holding money not to alert the IRS with cash deposits of 10k or over(such as depositing it 5 days in a row for $9999) is now a felony under the Anti-terrorism act. The dealership would rather have a cashiers check.

The government does not want anyone to have cash they cant track cash, so they made this law.

Ryanr317

I'd use a cashier's check as it is a lot safer. You really never know what can happen these days.

tvo7

Everyone has some pretty good opinions on here. I know if you go to the bank to get cashier's check, they charge you for the check. Why not save money by foregoing cashier check fee , withdraw 50k, and head over to the dealership.
Another question is this, I hear stories of mobsters, dealers, etc who go in and just pay everything by cash in a suitcase. How do they get around it?

wmhjr

Cashiers check or bank check is cheap insurance. Why take the chance? I'm picking up my E on Friday and am paying "cash" - but with a cashiers check. In a few weeks I'll be picking up something new for my wife and will use another cashiers check.

kevine310

If you have 50K laying around in a chequing account, you're probably loosing more than the $20 fee from the lower interest rate. Very few people will want to save 0.05% in fees to risking loosing $50k. It like saying that Bill gates takes the bus to the airport to fly in his private jet because he wanted to save some gas.

The stories you heard about mobster buying a car with cash is just that--- stories. Any cash that mobsters carry around are probably well-laundered to give the impression of legitimacy. One way to launder money is via real businesses that deal mostly with cash and hard to trace. For example, restaurants. Mobsters can "claim" any illegitimate money they have restaurant earnings, and it is very difficult to find out exactly how much food people ate and such.

NY C32

Any dealership looking to remain in business won't have anything to do with that nor is there any loophole to allow it.

The IRS requires all businesses to report any cash transaction totaling $10k or more. That includes any combination of cash, travelers checks and money orders. Certified checks, personal and business checks are not included.

Its not limited to just one transaction, it can be two or more similar/related transaction(s). So if you buy a $20k car on Monday and pay $9,999, $2 on Wednesday and then another $9,999 on Friday, it still has to be reported.

tvo7

I know many nail shop owners in my area who I hear pay 80k for a mercedes cash. As you all know, nail shop businesses, they know how to hide their earnings. How do they get away with paying 80k cash for a Mercedes and not getting into trouble?

NY C32

First, you are making the assumption that nail shop owners hide income by paying cash which is not the case 100% of the time so not everyone will get in trouble, if thats the case. There is nothing wrong with paying $80k in cash for a car unless there are some other red flags such as little or no reported income

Second, cash is cash. There are tons of legitimate people that pay cash for purchases (cash, check and the like). Like someone else mentioned, hard cash can leave a negative impression and I see no benefit when buying a car. If you walk into a dealer and plop down several $10k wraps, it looks odd. The same person can stop at the bank and get a check or arrange a wire transfer.

E500Newbee

What is so odd about cash??? dude have you looked into your wallet and found like $2000 in cash would you feel odd than???

I paid in cash without any problem. Yes, walk in and flop the cash down on the table, counted, wrote up the paper work. Drove home. Like I have say before, and I am saying it again, as long as you can prove where the cash are coming from it is ok...Why the hell everyone in this country is so damn scare of CASH...

Back home in my country, dude walking in my friend family car dealership with $950,000. Yes, nine hundred and fifty thousand of AMERICAN dollars for a ROLLS ROYCE PHANTOM. Took my friend families 2 straight days to count it all.

I just don't understand why are people in this country is so damn scare of the IRS. If you can prove it, it is ok...

NY C32

If you're going to respond to my message, at least have a point to your response. I responded to your first message because you were wrong. Now you're trying to find another argument?

$2000 in my money clip (who the hell carries a wallet?) isn't quite the same as going car shopping with $50k in cash. Like most people, I keep a good amount of cash on me and in my safe in case of emergencies.

You don't have to prove to the dealer where the cash is from, they report it because the law says they have to. And it has nothing to do with being scared... especially if you've got nothing to hide but I will say that you'd feel like a real schmuck if you lost your little baggie of cash on the way to a dealer. Thats why we have things like checks. If you lose it, you're protected.

As far as your friends dealer in your home country, tell him to get a cash counter. Most industrialized countries have other means of providing funds for larger purchases so you don't have to carry that much cash. Both the consumer and the buyer are at risk of theft the minute someone hears that you have $50k, let alone $950k in cash on you.

Again, cash is legal tender and if you want to carry $50k in your pocket, do it. No body cares. The IRS simply monitors large cash transactions for money laundering purposes. The OP is OBVIOUSLY posing the question because he does have something to hide; hence the reason for your other reply which was blatantly wrong yet you spewed it like it were fact.

nick 55

If you have a decent bank, and a decent balance, they don't charge for cashiers checks, and if they did, it's usually under $10. Is the chance of getting mugged on the way to the dealer worth saving a measly $10?