Paying car dealer with cash

Paying car dealer with cash

Author
Discussion

Jk89

Original Poster:

71 posts

9 months

Friday 7th June
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What is the most cash you can pay a car dealer now?

I’m guessing the same rules don’t apply with a private purchase?

Thanks

ChrisH72

2,346 posts

59 months

Friday 7th June
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DodgyGeezer

42,359 posts

197 months

Friday 7th June
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don't dealers still have to do due diligence?

Jk89

Original Poster:

71 posts

9 months

Friday 7th June
quotequote all
I thought the limit was somewhere between £8-£10k now?

I’ve sold cars privately for more and bought a pick up for £19k cash in 2018.

ACCYSTAN

1,027 posts

128 months

Friday 7th June
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Over £9k money laundering checks must take place?

Jk89

Original Poster:

71 posts

9 months

Saturday 8th June
quotequote all
ACCYSTAN said:
Over £9k money laundering checks must take place?
I’m used to that type of check through buying houses and land.

Around 90% of the price will be paid via bank transfer and I won’t be adding more than £9k cash.

mirsgarage

263 posts

26 months

Saturday 8th June
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Jk89 said:
I’m used to that type of check through buying houses and land.

Around 90% of the price will be paid via bank transfer and I won’t be adding more than £9k cash.
In that case afaik it will be completely fine. Have only paid outright for my cars and from Porsche, to LR, to Ferrari - have never had any checks take place to my knowledge. Just did a bank transfer and picked up the car. Bank wanted to see an invoice from the dealer and that was it as far as any checking goes.

fridaypassion

9,361 posts

235 months

Saturday 8th June
quotequote all
Ask the dealer there's isn't one answer. Depends on the amount and the dealer some might love a bit of cash. If it was me I would take a grand or two but no more than that as cash is just a pain in the backside. You certainly don't have a "right" to use cash.

On the odd occasion people have asked me to take cash and I was recently asked to take 30k I proposed taking £33000 in that instance as it's my charge for laundering their untaxed funds. Pretty reasonable I thought! I would have to bank it and we get charged a very high fee plus it's inconvenient. I do laugh when people expect it to be cheaper for taking a very inconvenient payment method!

119

9,424 posts

43 months

Saturday 8th June
quotequote all
Jk89 said:
What is the most cash you can pay a car dealer now?

I’m guessing the same rules don’t apply with a private purchase?

Thanks
Surely it would be easier to just pay the cash in to your bank and pay with a debit card?


ChrisH72

2,346 posts

59 months

Saturday 8th June
quotequote all
I've just paid 16k to a local dealership. They wanted bank transfer.

I also can't really see why you wouldn't just deposit the cash in your own bank first rather than ask a car dealer to accept it.

119

9,424 posts

43 months

Saturday 8th June
quotequote all
ChrisH72 said:
I've just paid 16k to a local dealership. They wanted bank transfer.

I also can't really see why you wouldn't just deposit the cash in your own bank first rather than ask a car dealer to accept it.
Depends if it is legitimate or not.

Truckosaurus

12,034 posts

291 months

Saturday 8th June
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Jk89 said:
I thought the limit was somewhere between £8-£10k now?

I’ve sold cars privately for more and bought a pick up for £19k cash in 2018.
There is no limit. Just rules on money laundering checks and the inconvenience/costs for the dealer to bank the money.

I assume the dealer is obliged to report a cash transaction of £1 if they think it is dodgy....

If the OP has a wad of cash to spend, then he just has to negotiate with the dealer to make it worth their while to accept it (eg. the 10% surcharge mentioned by the trader earlier in the thread....)

J1990

836 posts

60 months

Saturday 8th June
quotequote all
My understanding is that payment in cash cannot be refused as settlement of a debt, however making a purchase is not a debt and therefore is outside of that rule and this is how many smaller businesses get away with being card-only and turning down cash sales.
Privately there's no limit, though any seller accepting a significant amount fo cash would be wise to have the buyer accompany them to a bank to pay it in to the recipients account in case there's any funny money in there.
Buying from a dealership they're going to be within their rights to turn down any amount of cash you try to pay with and if they do accept cash then money laundering checks are triggered at €10k https://www.gov.uk/guidance/money-laundering-regul...

Jamescrs

4,854 posts

72 months

Saturday 8th June
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Speak to the dealer because a lot of larger dealers now won't take more than about £1000 in cash.

Someone turning up with 10's of thousands in cash starts ringing alarm bells, not to mention having to check for fake notes amongst the cash.

Deep Thought

36,735 posts

204 months

Saturday 8th June
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This all feels a bit of a waste of time as

(a) the O/P is only paying circa £9K in cash anyway

(b) call the dealers and ask what their able to accept without triggering any money laundering issues.


JaredVannett

1,569 posts

150 months

Saturday 8th June
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sorry, had to...


Cheib

23,730 posts

182 months

Saturday 8th June
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fridaypassion said:
Ask the dealer there's isn't one answer. Depends on the amount and the dealer some might love a bit of cash. If it was me I would take a grand or two but no more than that as cash is just a pain in the backside. You certainly don't have a "right" to use cash.

On the odd occasion people have asked me to take cash and I was recently asked to take 30k I proposed taking £33000 in that instance as it's my charge for laundering their untaxed funds. Pretty reasonable I thought! I would have to bank it and we get charged a very high fee plus it's inconvenient. I do laugh when people expect it to be cheaper for taking a very inconvenient payment method!
I like your style biggrin

66HFM

491 posts

32 months

Monday 10th June
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I think it comes down to whether you are buying from a dealer or a Trader.... a lot of dealers I've approached won't take more than £1k.

Another problem is finding a bank to pay the cash into as our nearest one is 20+ miles away, although I think you can pay in certain sums into your bank account at a Post Office, although not sure how much...