Don't say "I'm Paying Cash" at Car Dealerships

[ford man xf]

When buying a new car are the days of paying cash and getting a better deal gone? I came across an interesting video on YouTube, I know its in the USA but it does have some good points about negotiating a good deal with the dealership and not mentioning that you will pay cash.

It's basically arguing that now finance rather than cash will get you a better deal with the dealership? Is it better to just get finance and pay it off super quick?

Is there any good tips from new car buyers on here that worked for them?

Heres the video: https://www.youtube.com/watch?v=gLxVyeFmod8

[Tassie f100]

Dealers aren’t interested in cash details because they get kick backs, amounting to hundreds of dollars, from finance companies for signing up buyers to buy on finance.

[ozpacman]

The video didn't open for me mate.

Dealerships are not really interested in you paying cash because there is good commission in arranging your finance for you.

As well as that it's probably much easier to upsell you into a higher spec model and some genuine accessories which they can also wrap into the finance, because "for only x amount a week more you can have blah blah blah extra!"

Then the Ming Moll wanders over and waves her 'products' under your nose and "Ahh, what the heck. We can wrap the paint protection, rust proofing, mats and fabric treatment in as well!"

If you're paying cash they know you're there to deal hard.

I pay cash (well, my own money via a bank transfer anyway) so I tend to make them work pretty hard to sell me a car.

[You Yangs]

Originally Posted by ozpacman

Then the Ming Moll wanders over and waves her 'products' under your nose and "Ahh, what the heck. We can wrap the paint protection, rust proofing, mats and fabric treatment in as well!"

Always avoid the Ming Mole!!

[CyberWasp]

Isn't there a new law coming to limit cash to 10K transactions or something?

[Tassie f100]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

You are right,but paying cash is a fairly loose term.What it really means is you want to pay by cheque, bank transfer etc on signing the deal,rather than using term financing

[IanC]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

That is to stop people rocking up with a suitcase full of 50s. If you front up with a bank cheque or do a bank transfer that is as good as cash and you don't have the risks of walking around with a big wad of money.

The way I deal with the salesmen is when they ask how I intend to pay or do I want finance I say "Hang on a minute. The first thing is for us to decide what price it is and whether I want to buy it at that price or not."

[xxx000]

Originally Posted by IanC

That is to stop people rocking up with a suitcase full of 50s. If you front up with a bank cheque or do a bank transfer that is as good as cash and you don't have the risks of walking around with a big wad of money.

The way I deal with the salesmen is when they ask how I intend to pay or do I want finance I say "Hang on a minute. The first thing is for us to decide what price it is and whether I want to buy it at that price or not."

Bank cheques can bounce so they aren't as good as cash.

[Sprintey]

Originally Posted by xxx000

Bank cheques can bounce so they aren't as good as cash.

I'd just like to qualify this. If you get a Bank cheque, it will be drawn on the branch account - you will be able to see the BSB and branch account number in the numbers at the bottom of the cheque - I'd be very, very surprised if that one bounced. Especially since your funds are transferred into the bank branch's account when you get the cheque printed up

If you draw a personal cheque however, that one can bounce and the dealership has no idea if you have the funds to back it - usually they will wait for those to clear, if they accept them.

I've never had problems with bank cheques when buying bigger things.

[bungarra]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

Half right, you can still spend over 10K in cash but the institution you are buying from (car yard, Harvey Norman etc) or the bank you take your money out of or deposit into, are required to report it to AusTrack, The limit previously on bank deposits was 5K.

[Mulva]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

[gossy]

Originally Posted by Mulva

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

https://youtu.be/lsicvYuBdJM?t=27

[bartaxr8]

Originally Posted by Mulva

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

The cash ban isn't law........yet. It has just been through a Senate Economics Legislation Committee and looks like becoming law. In essence, cash transactions above $10,0000 between an individual and a business will be illegal, with a punishment of 2 years jail/$25,000 fine. Transactions between individuals are ok.

If it can be proven that you have made two transactions for the same goods or services over the $10,0000 limit, this is also illegal under the legislation.

[Pis-ton broke]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

its govco trying to push everybody into a cashless society. maybe in five years they will says 5k max cash transactions, slowly,slowly they work towards what the govco wants.

thats how the govco win, very sneaky. (ie. passing controversial laws on or just before long weekends). the cash economy, is an economy that the govco cant control or tax.

you ever done a cash job (cashie) for someone? and did you pay tax on it?

[Itsme]

Originally Posted by Pis-ton broke

its govco trying to push everybody into a cashless society. maybe in five years they will says 5k max cash transactions, slowly,slowly they work towards what the govco wants.

thats how the govco win, very sneaky. (ie. passing controversial laws on or just before long weekends). the cash economy, is an economy that the govco cant control or tax.

you ever done a cash job (cashie) for someone? and did you pay tax on it?

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

[Tassie f100]

Originally Posted by Officemanager

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

At present there is no law regarding cash transactions of $10k,but the proposed law has been presented to the senate, so there is a pretty fair chance that such transactions will become illegal sooner rather than later

[KobiXR6T]

Originally Posted by Tassie f100

At present there is no law regarding cash transactions of $10k,but the proposed law has been presented to the senate, so there is a pretty fair chance that such transactions will become illegal sooner rather than later

I'm pretty sure when we are talking about paying cash in the event of buying a car we are simply implying not financing.

A bank cheque or direct deposit wouldn't be included in laws above, as they are about reducing laundering. Anything that goes into a bank account can be accountable. Questions could be asked why you've always got cash coming in from undelcared income etc.

[Pis-ton broke]

Originally Posted by Officemanager

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

i never said there was a limit, but they are trying to push it thru.
its on the sly, read before calling me a b,s, artist.

[Itsme]

Originally Posted by Pis-ton broke

i never said there was a limit, but they are trying to push it thru.
its on the sly, read before calling me a b,s, artist.

Never called you B.S. artist, your words not mine.
Just made a comment on cash limits.

[fiestaz]

The salesman couldn’t care less how you pay for the car. It truly is a waste of breath trying to get a better deal “for cash”.

The business manager (who does the money side) does care because they’d rather you finance it.

[Vekgib]

Originally Posted by fiestaz

The salesman couldn’t care less how you pay for the car. It truly is a waste of breath trying to get a better deal “for cash”.

The business manager (who does the money side) does care because they’d rather you finance it.

True that.
Once Mrs Vekgib settled on buying a Corolla, for the price she wanted, the dealership did all they could to get her to buy it under finance.
Even when she returned with $23k in 100's, the business manager was still pushing the finance route.

[adyadad]

Originally Posted by Vekgib

True that.
Once Mrs Vekgib settled on buying a Corolla, for the price she wanted, the dealership did all they could to get her to buy it under finance.
Even when she returned with $23k in 100's, the business manager was still pushing the finance route.

I bought a new car a couple of years ago. The salesman didn't care but the manager pushed the finance. When I said I had all the purchase price, he offered finance for half the price. I still paid for it all.

[ebv8]

a mate of mine sold a boat (he was a dealer) for about $45k and the buyer paid cash
they had to shut the doors and all the dealers counted the money for the next few hours
aparently when finished they scraped the table and had a party...

[Mulva]

Cash is still king when buying privately off gumtree - seems to trump the offers of swap for lizard and busted fish tank.

[X-AHH]

Related to the topic.

My mother whose an 85 year old pensioner had to pay a 4% surcharge for paying for her carpets to be cleaned by one of the leading cleaning companies because she paid in cash.

I was about to go to town on them but discovered that it was clearly displayed on their website under the terms and conditions. It seems that payments in cash are becoming a thing of the past.

She and everyone else in the family will never use that company again.

[hayseed]

Originally Posted by xahh

Related to the topic.

My mother whose an 85 year old pensioner had to pay a 4% surcharge for paying for her carpets to be cleaned by one of the leading cleaning companies because she paid in cash.

I was about to go to town on them but discovered that it was clearly displayed on their website under the terms and conditions. It seems that payments in cash are becoming a thing of the past.

She and everyone else in the family will never use that company again.

About 12 months ago I took my elderly Mother to e Medical appointment in Canberra. Whilst We were paying her Bill another elderly Woman was being served beside us by another receptionist, When Told the amount Owing, She pulled out a Roll & laid the EXACT amount on the Counter (From memory $260)Only to be informed that We Don't accept Cash........ Eftpos or Credit card Only. .Old Girl says I don't have a card never have & never Will..

They were Both eyebrow to eyebrow When We Left ..NFI on the outcome...

[GCRXR6]

Originally Posted by hayseed

About 12 months ago I took my elderly Mother to e Medical appointment in Canberra. Whilst We were paying her Bill another elderly Woman was being served beside us by another receptionist, When Told the amount Owing, She pulled out a Roll & laid the EXACT amount on the Counter (From memory $260)Only to be informed that We Don't accept Cash........ Eftpos or Credit card Only. .Old Girl says I don't have a card never have & never Will..

They were Both eyebrow to eyebrow When We Left ..NFI on the outcome...

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

[hayseed]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

Mum & I were only talking about it last weekend. We both agreed, We would've walked out & left the cash on the counter....

[Pis-ton broke]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

after they refuse the cash, just walk out.

they should take cash.

[jpd80]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

It's not unlawful to decline a cash payment but, if it's to pay an existing debt
and no other way exists to pay they are generally required to honour it.


FYI, things like $1 & $2 coins have a legal tender limit of ten times their face value,
so technically, you can't even pay $20 in $1 coins but the limit for $2 coins.
Most will accept it but it's there to stop hoarding and paying debts with a
suitcase full of coins.


Most car dealers don't really want touch cash regardless of financing kickbacks,
a cash transactions raises alarm bells for the tax man, I'll save you money on the
stamp duty by making the sale price $10k less and you pay me $10k under the table