buying used car using cash

[malazn mafia]

Anyone have any idea of the legality of purchasing a second-hand car valued at approx 10K + tradein, from a car dealership, using hard cash? (my savings are all in the form of cash) thanks. If theres any issues, would private sale be the way to go.. and anybody have a BA Fairmont they'd be wanting to sell for cash?

[XR8 Uterous]

So long as the cash was obtained in a legal way i dont see why there should be a problem?

[MotherNatureVer2]

You should find you will have more bargaining power with cash

Is the best way to go if you can.

[olfella]

I would be looking up the banking guidelines regarding how much cash you can use in one transaction - you don't need any unwanted knocks on th edoor.

[Yellow_Festiva]

Originally Posted by olfella

I would be looking up the banking guidelines regarding how much cash you can use in one transaction - you don't need any unwanted knocks on th edoor.

Anything over 10 grand is meant to be somehow registered with some sort of authority.

If your cash was made legally and tax paid than you dont have an issue.

However 'a friend' of mine paid 17 grand cash for a car and when 'that friend' did so, he asked the dealer to 'keep that between you and me'.... (I guess the dealer just entered the cash at the bank as 2 transactions)

'that friend' never had a knock at the door.

[Laminge]

use 8,000 cash the rest in a bank cheque

I believe that any cash transaction at or over 10k is still reported

[Pedro]

Originally Posted by Laminge

use 8,000 cash the rest in a bank cheque

I believe that any cash transaction at or over 10k is still reported

Correct.

[BAxtER]

Originally Posted by Laminge

use 8,000 cash the rest in a bank cheque

I believe that any cash transaction at or over 10k is still reported

yeah and you have to fill in a form stating where the money came from etc etc, well at least here in Queensland.

[XRQTOR]

Originally Posted by Laminge

use 8,000 cash the rest in a bank cheque

I believe that any cash transaction at or over 10k is still reported

Yea its $9,ooo at the CBA now, but if your a regular at your local bank they dont report it. Thats for withdrawing or depositing into an account. Buying a car at a dealer is different, when i bought my BA the bank refused to let me take it all in cash. I rang our the rep who looks after our business account and he orgainsed a bank cheque to be deliver at the dealer, i managed tog et the cash out of the local branch and i gave the dealer the choice of a cheque or cash and they said they'd prefer not to count it lol.

[Smoke Pursuit]

make sure you buy from a dealer, then you know its all legit (otherwise get revs check on private sale car).

[paule11]

Dont think it would be a problem I know a bloke who used to buy Caterpiller Dozers for cash used to walk in with a suitcase of full of cash (opal miner).
When I brought an XR6 last June asked the salesman if he wanted cash the dealers are just as happy to do a bank transfer

[fordomatic]

yeh i paid cash to the dealer for my xr8

[FRDGAL]

Originally Posted by malazn mafia

Anyone have any idea of the legality of purchasing a second-hand car valued at approx 10K + tradein, from a car dealership, using hard cash? (my savings are all in the form of cash) thanks. If theres any issues, would private sale be the way to go.. and anybody have a BA Fairmont they'd be wanting to sell for cash?

Shouldn't be an issue at all. My ex and I bought a car for $19,000. All cash. Only drama was the wait because it took ages for the girl in the office to count it lol.

[theunfairadvant]

Jan last year i rock up with $50k cash to pick up my car
the Ford dealer from Liverpool knock me back as they only
received bank chqs or direct deposit only and not cash.

[atec77]

Originally Posted by malazn mafia

Anyone have any idea of the legality of purchasing a second-hand car valued at approx 10K + tradein, from a car dealership, using hard cash? (my savings are all in the form of cash) thanks. If theres any issues, would private sale be the way to go.. and anybody have a BA Fairmont they'd be wanting to sell for cash?

A bank cheque is safer , of course it may take a day or two to clear but it makes a paper trail and options if things go south..

[XRQTOR]

Originally Posted by atec77

A bank cheque is safer , of course it may take a day or two to clear but it makes a paper trail and options if things go south..

Bank cheques are instant transfers as they withdraw the money from your account when they print it out.

[plext]

I paid 16k cash for a car from a dealer not so long back, never heard anything about it.

Bank cheques can and do take time to clear, it's just that most people take them at face value due to the way they are drawn as mentioned. Problem with them these days is that a lot of counterfeit bank cheques have surfaced in the last few years and people are becoming increasingly leery of them, the result is sometimes needing to wait for them to clear.

[malazn mafia]

thanks for the replies, the reason being for cash is i do jobs for my parents and they pay me cash and i have saved up over time, so cash is obtained legally. Just not into the hassle of bank deposit and the tax when cash exceeds 8K or so in the bank account.

[RIPGMH]

Originally Posted by malazn mafia

thanks for the replies, the reason being for cash is i do jobs for my parents and they pay me cash and i have saved up over time, so cash is obtained legally. Just not into the hassle of bank deposit and the tax when cash exceeds 8K or so in the bank account.

As stupid as it sounds you should have paid tax on the income earned, even if it was from your parents. Car dealers aren't the most scrupulous people so you should be able to find one willing to do a good deal for cash.

[Mr Cube]

Originally Posted by RIPGMH

As stupid as it sounds you should have paid tax on the income earned, even if it was from your parents. Car dealers aren't the most scrupulous people so you should be able to find one willing to do a good deal for cash.

Not if his folks "Gifted" it to him,

[nickd]

Originally Posted by malazn mafia

thanks for the replies, the reason being for cash is i do jobs for my parents and they pay me cash and i have saved up over time, so cash is obtained legally. Just not into the hassle of bank deposit and the tax when cash exceeds 8K or so in the bank account.

Maybe your signature is making everyone think twice,
best bet with your hard earned money you should get better buying power say 10k for a car at a dealer you should probly able to get 2k cheaper.
goodluck with the future buy.
My2c

[asusdragon]

you can get your bank to wite a bank cheque cost bout $10 or something to write, and they can write it out to whoever, so yeah if something goes south like what was said above then it can be trance and it cant be bank unless into the stated account. only thing with that much cash is carry it round. with you i cant see there being a problem paying in cash its all the same and also more bargaining power with cash too. good luck on your new car purchase too, where ever you get it from make sure its repuratable seller and gets revs check on either way (rev will only check for your state so try and get a history on the car too so it hasnt on money owning in another state or been written off in another state, heard of car yards doing in this in NSW or QLD i think)

[deesun]

Cold hard cash, the best haggling stick money can buy.

[Casablanca]

incorrect the best bargaining chip is if you finance as the dealer makes more out of you this way. if you came into my dealership and flopped out a wad of cash i'd say sure and give you the price i'd give anyone else, purely as i don't feel it's right treating a customer with cash or a customer who needs to borrow differently. they are both buying a car i still get my crappy comission.

[lownloud]

I call BS!
I built my whole friggin house with cash and I can tell you I never had to report or had one transaction reported. I've also bought a few cars over the years with cash and have never had an issue. There is a system of reporting it in the States but as far as I know there is none here.

[XRQTOR]

Originally Posted by lownloud

I call BS!
I built my whole friggin house with cash and I can tell you I never had to report or had one transaction reported. I've also bought a few cars over the years with cash and have never had an issue. There is a system of reporting it in the States but as far as I know there is none here.

My mates missus is the manager at a local branch & anything over 9k gets reported, they dont tell you this but they do report it. It's mainly for the police & tax man to check up on people for money laundering & tax evasion. Just because you arn't aware doesnt mean it doesnt happen.

[The_Ghost]

IMO and from the last few cars we have purchased. Most dealers arent fussed with cash. They are happy with bank cheque. I think cash will give you more bargaining power in a private sale these days But as said make sure you get a REVS or RACV/Q check on private sale. I would imagine that a 10k bank qheque would still use the same criteria(reporting) as withdrawing the cash. So maybe make a deposit of 3K (on car) then balance following day? (2x bank cheque?) Got to the casino if concerned sit there for a while and drop in a few dollars, have a few drinks and Im sure you could draw out 10K in a casino and tell nobody : ?Still taxable?

[XRQTOR]

Originally Posted by The_Ghost

IMO and from the last few cars we have purchased. Most dealers arent fussed with cash. They are happy with bank cheque. I think cash will give you more bargaining power in a private sale these days But as said make sure you get a REVS or RACV/Q check on private sale. I would imagine that a 10k bank qheque would still use the same criteria(reporting) as withdrawing the cash. So maybe make a deposit of 3K (on car) then balance following day? (2x bank cheque?) Got to the casino if concerned sit there for a while and drop in a few dollars, have a few drinks and Im sure you could draw out 10K in a casino and tell nobody : ?Still taxable?

Any form of cash transfer/payment will draw this attention. Bit stupid but i see why.

If you win more than $2,ooo in any gaming venu they require id then they will mail it out to you, how do you think vegas was born lol. People have tried and will do anything to legitimize money earned in various ways.

[zebu]

i work at a dealership and people do it all the time.

usually we would rather have a bank cheque rather than a big lump of cash for a large payment because it is safer for you and us having to send someone to the bank to deposit it and the risk of a mugging on the way.

Also its not like we can do an under the table on a car and not pay GST so the option for us that looks the most attractive is the one where you buy the car from us and get finance from the yard because we make money on the car and the finance we sold

that said last time i bought a car from here and when i went and bought my motorbike I wandered in with a fist full of cash to pay for it _2:

[Taxman]

XRQTOR is spot on the whole thing is administered by the Cash Transaction Reporting Authority (CTRA). They set the limits as to what and when cash transactions have to be reported. If the bank etc are concerned that it could be a suspicious transaction they can and do report transactions as low as $5,000. The bank is never going to tell you that they have reported you because they don't want to lose a customer.

The ATO can take several years to follow up on a suspected tax evasion - one would be amazed to find exactly how far they go into a persons background before you even know you are being audited. If they can prove fraud and evasion (as simple as not disclosing some cash income) then there is no statute of limitations as to how far they can go back when looking at your affairs. Unfortunately for Joe Average there is a section in the Tax Act called "Onus of Proof" basically the ATO doesn't have to prove a thing, you as the taxpayer not only have to prove everything in your tax return but also what is the correct figure. Guesstimates don't hold water.

Your only hope is that they have too many reports to follow up and you can escape between the cracks - but don't hold your breath.